Introduction
Regular attention to your finances is necessary to keep your budget in check and set aside money for emergencies, retirement, and other life goals. Around the middle of the year is a great time to evaluate how things are going.
During a mid-year assessment, your previously set financial goals are now more challenging to achieve and need to be adjusted. You may also determine that you need to change your budget, investments, insurance, and debt payments.
Here, we'll look at a few crucial mid-year factors to help you stay on track to meet your 2023 financial goals.
Key Takeaways
Staying on track requires reviewing your finances more than once a year.
Examine your budget first, if you have one. Make one if you don't have one.
Be mindful of your emergency funds and debt.
Make sure to review your credit report at least once annually.
Include cheques for retirement or education funds as well as student loans.
Taking stock of your financial practices might help you stay on course to meet your yearly financial objectives.
If your savings exceed your initial projections, you might want to think about investing or paying off debt.
You can verify that your personal information is accurate and that there are no erroneous or missing account details by looking over your credit reports.
Take control of your financial future—one simple step at a time.
Hurrying, isn't it? You're making resolutions for the New Year one minute, and July is the next. You're not the only one whose 2025 financial objectives have become somewhat distracted. Life does happen. The good news is that the middle of the year is a great time to start over financially.
Consider this to be your own financial half-time. It's an opportunity to assess your progress, make some wise changes, and close out the second half of the year on a high note. These five stages can help you reach your financial goals, whether they are to increase your savings, pay off debt, enhance your credit, or simply become more confident with your finances
Revisit Your Budget and Adjust for Seasonal Changes
Although it's the cornerstone of your financial health, your budget is not something you create once and then forget. The changes in your life should be reflected in your budget. It's a good idea to assess your income, spending habits, and financial commitments in the middle of the year to see if your current plan is still working.
To begin, compare your actual spending to your Spending estimates from earlier in the year. Did you spend too much on your trip or on repairs for your car? Have you subscribed to or joined a new streaming service? Does the price of petrol and food affect your monthly cash flow?
Additionally, take seasonal changes into account. New expenditure categories are frequently introduced throughout the summer, including increased electricity bills, back-to-school purchasing, vacation costs, and children's activities. You can avoid money surprises later by planning ahead.
Update your budget by:
Examining your bank and credit card statements from the previous two to three months
Finding any areas where spending has increased
establishing new goals for the upcoming half-year
Taking into consideration anticipated future expenses, such as school supplies or holidays
Pro tip:
If you prefer a simple strategy, apply the 50/30/20 rule:
Use half of your money for necessities (bills, groceries, and shelter).
30% for wants (eating out, entertainment)
20% for debt repayment and savings
Your present budget could only need some simplification if it seems excessively strict or difficult to monitor. Additionally, Ozark Federal Credit Union provides personal financial advice and online budgeting tools to assist you in determining what works best for you.
Recheck Your Savings Progress
Setting savings goals is frequently one of the first things we do in January, and it's also one of the first things that gets neglected. Don't give up if, at this stage of the year, you haven't achieved as much as you had intended. You simply need to find a plan that works for you right now. There is still plenty of time to save significantly in 2025.
Consider this:
Do you consistently save money? Are you aware of how much you have saved this year so far? Do you save when you think about it, or do you do it for a reason?
Making a conscious effort to save money can mean the difference between wishing you had it and having it when you need it.
Easy ways to boost savings mid-year:
Put up automatic deposits into a special savings account so that money stays out of sight and out of mind (in a good way!).
To keep savings distinct and targeted, open a purpose-driven account, such as the Vacation Club or Christmas Club at Ozark Federal Credit Union.
Redirect savings from lower costs (such as summertime utility bill reductions or stopped streaming subscriptions).
Over time, even modest sums—$10 here, $20 there—can accumulate into something significant. How persistently you commit to saving is more important than how much you save all at once.
Take a Closer Look at Your Credit Score and Report
In addition to determining your loan approval, your credit score also influences your interest rates, insurance costs, and, in certain situations, employment or renting chances. This is why it's so wise to undertake a mid-year credit check.
Examine your whole credit report from each of the three major credit bureaus first. AnnualCreditReport.com offers it for free once a year, and you might be able to check it more regularly during specific times. Check for any mistakes, strange accounts, or off-balances. A minor error might cost you money and damage your score.
Next, review your credit score itself. It’s influenced by a few key factors:
History of payments: Timely payments are important.
Credit utilization: Don't let amounts exceed 30% of your entire credit limit.
Length of credit history: Keep older accounts open unless absolutely required, as they might raise your score.
New credit inquiries: If you apply for too much new credit in a short amount of time, it may temporarily lower your credit score.
To stay on top of your credit health:
Put reminders or auto-pay in place to avoid missing due dates.
Particularly for credit cards with high interest rates, lower balances.
Wait until it is absolutely necessary to open new accounts.
Once a month, check in using credit monitoring tools.
SavvyMoney is a free credit score service offered by Ozark Federal Credit Union and is available via online and mobile banking. It not only gives you your most recent score but also indicates the things that are influencing or hurting it, so you can make informed changes.
Make a Debt Reduction Game Plan That Works
Particularly when you're balancing several balances, interest rates, and due dates, debt might feel daunting. However, you can reclaim control with a well-thought-out plan, and the middle of the year is a great time to develop one.
Compile the information first, including monthly minimums, interest rates, and total balances. Knowing your current situation will help you decide which bills to pay off first.
Popular payoff methods
The snowball method involves concentrating on paying off the smallest debt initially to develop confidence and momentum.
To increase your savings over time, use the Avalanche Method to pay off the loan with the greatest interest rate.
Combining several debts into one with a reduced interest rate is known as debt consolidation; this is frequently accomplished by credit card transfers or personal loans.
Select an approach that maintains your motivation and consistency. Financial gains, such as lowering your monthly interest expenses or paying off a single credit card, mount up rapidly.
Helpful debt-reduction tips:
Refunds, bonuses, and gifts are examples of "found money" that can be applied to balances.
To monitor progress, set small objectives, such as "Pay off $1,000 by October."
Think about taking out a loan from Ozark Federal Credit Union to pay off debts with higher interest rates.
Above all, try not to be too hard on yourself for past choices. Concentrate on your current capabilities. Little actions today can reduce major stress later.
Refresh Your Goals for the Second Half of the Year
Every year begins with great aspirations and well-meaning intentions, but by the middle of the year, objectives may seem unattainable or out of date. That's quite typical. The secret is allowing oneself to refocus, reset, and revise.
Instead of making nebulous objectives like "spend less" or "save more," set attainable, quantifiable goals. Using the SMART method, which aids in the definition of specific, meaningful goals, is one way to do this.
SMART goals are
Particulars: Make it clear what you hope to accomplish.
Measurable: Provide a mechanism to monitor your progress.
Reachable: Considering your time and income, make sure it's reasonable.
Pertinent: Complement your individual financial goals
Time-sensitive: Establish a due date to ensure accountability.
Mid-year financial performance review adjustments
Budget
Make adjustments to your budget when you examine it to account for any changes in your living expenditures. If they have increased, think about which of your costs are essential and which are not.
Financial goals
Now that the year is halfway over, go over things again and see if your priorities have changed. This is an excellent moment to determine whether you can save more or less for each objective than you had anticipated, and then modify your budget appropriately.
Holiday shopping is one objective you may choose to include on your list. Almost one-third (27 percent) of respondents who participated in a Bankrate 2022 holiday shopping survey stated they will incur debt in order to pay for their purchases. You can reduce stress and prevent debt this winter by starting now to save even a small amount each month for gifts and other holiday expenses.
Debt
Speaking of debt, now is an excellent opportunity to review how much you spend each month on your loans and credit cards. You can pay less each month if you think about combining your loans. Credit cards that allow balance transfers sometimes have an introductory annual percentage rate (APR) of zero percent.
Emergency fund
If your emergency fund has been exhausted this year as a result of spending, make sure to replenish it. In the end, this fund ought to be sufficient to cover unforeseen costs as well as several months' worth of living expenses.
Additional financial planning resources
According to Bankrate's emergency savings poll, only about half of Americans (48 percent) have enough money saved up to cover three months' worth of costs as they continue to suffer the effects of high inflation and economic instability.
Many savers would also benefit from smaller check-ins each month, but a mid-year check-in can help you stay on track with your financial strategy and expand your savings.
Your larger goals can be broken down into smaller, more doable steps by closely monitoring your financial goals through check-ins. Additionally, you'll feel proud of yourself for sticking to your plan and making the required changes. You may use Bankrate's savings goals calculator to help you create and modify your objectives.
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