Half Yearly Money Check-In

How are you getting on with managing your money at the moment?

Sticking to money resolutions can be tricky, but with the right strategies, it is possible to achieve your financial goals. Make sure you set realistic and achievable goals. Try to break down any larger goals into smaller manageable steps. Don’t just say that you want to “save money”, make it tangible by setting a specific amount. You can then make a plan to achieve this. At this stage, I would say that if you aren’t already recording your monthly spending, grab a notebook now and write down all of your income and expenses for a month. Can you identify what your spending habits are? Can you see ways in which you could cut back and save that money instead? For example, instead of buying lunch or eating out, try taking lunch or cooking at home instead. Keeping a record of spending and saving will help you stay on track and only make adjustments when necessary. I’ve found that people are more successful at achieving their goals when they have an accountability partner who can offer guidance and encouragement along the way. By being committed and having the right strategies in place it is possible to achieve financial success.

How far ahead should you be thinking when making your money resolutions?

When you are thinking about money, it's important to think beyond just the present year. Consider where you want to be financially in the next 5, 10, or even 20 years. Imagine a scale of 1 to 10, where 1 is the worst position to be in and 10 is the best it can be, what does being at 10 look and feel like?  Now think about the number on the scale where you are today, what steps could you take to get you closer to your ideal 10?  Don't forget to regularly review your progress and adjust your plan accordingly. By keeping this long-term mindset, you'll be on the right track to achieving financial stability and success.

Do you have any resolutions around budgeting, saving and debt that people should consider at the year’s midpoint?

It’s an ideal time to check in on your budgeting, saving, and debt management strategies. Here are a few tips to consider:

1. Keep an eye on your spending habits and identify any areas where you can cut back.  Any cash you free up can go towards your savings or debt repayment.

2. Make a plan to pay off any outstanding debts.  Pay larger amounts to the debt with the highest interest rate.  Once they have been paid off, move on to the next highest-interest debt.  By doing this, you could save money on interest charges in the longer term and free up funds for other financial goals.

3. Set a savings goal for the remainder of the year.  This could be for a specific purchase, emergency fund or for your pension fund.  Make a plan to contribute a set amount each month towards your savings goal and track your progress regularly.  There are some really good banking apps on the market which allow you to set aside money in 'pots' for specific spending i.e. paying bills, saving, the emergency fund, holiday funds, birthdays, etc.  Automating your finances is an effective and stress-free process and can help you stay on track to reach your financial goals.

4. Consider engaging with a money or financial well-being coach.   I always describe myself as a ‘personal trainer’ for your finances.  Just as you would seek professional help for your weight or fitness, the same can be done for your finances.  A financial coach can help you build a better relationship with money and equip you with the tools and knowledge to improve your financial situation and achieve your goals.

Remember, small changes can make a big difference in the long run and don’t forget to celebrate the small wins along the way.

How common is it, in your experience, that people fail to stick to their money goals/resolutions?

I’ve found that it’s quite common for people to struggle to keep to their money goals and resolutions. Many people start off the year with good intentions and have a solid plan, but find it difficult to stay on track.  Some of the reasons are unexpected expenses, lack of discipline or some people no longer have the motivation.  

One of the biggest challenges is the temptation to overspend.  It can be easy to get caught up in the moment and impulsive spending can take over, especially when you are surrounded by friends and family who may not share the same financial goals as you.  Consider just taking a set amount of cash with you so that you can't be tempted to overspend.  Additionally, unexpected expenses such as car repairs can easily derail even the most well-planned budget.  This is where your emergency fund comes into play (see the above banking apps advice).

Sticking to a budget requires discipline and it can be difficult making smart financial decisions, but short-term sacrifices are made up for in the long-term gains.  It is important to remember that it is never too late to get back on track.  With the right mindset, anyone can achieve their financial goals and live a more financially secure life.

How important is it to celebrate your money goal successes, while also being honest with yourself?

First of all, it is important to celebrate reaching your financial milestones by allowing yourself to acknowledge and enjoy the feeling of accomplishment. This helps you to maintain your motivation to keep working hard to reach your goals. Look for ways to celebrate that fit in with your budget and include family and friends who have been on this journey with you.  However, it is equally important to be honest with yourself and recognise any setbacks or challenges you have encountered on the way.  Progress over perfection.  It’s ok to make mistakes or experience setbacks, these can only help you learn and grow as a person.