Feel Like You're Over-Spending? Now's A Great Time For A Mid-Year Financial Reset
We've all been there — your wallet finally recovered post-holidays in the first quarter of the year, only for you to slowly creep into over-spend mode yet again as summer fun takes over. Those ebbs and flows are totally normal, but sometimes it just means you have to pause and take a moment for a little mid-year financial reset so you don't totally lose sight of your goals.
Tori Dunlap, author of NYT bestseller Financial Feminist and the money expert behind @herfirst100k, has some helpful tips if you're trying to get back on financial track. Instead of cutting off fun cold turkey, here's how you can take stock of what you have, readjust your goals, and still spend on the fun stuff while also putting your best financial foot forward. Here are three questions Dunlap wants you to ask during your mid-year financial reset to accomplish this!
Photo by Karolina Kaboompics
1. Were my financial goals reasonable?
Dunlap suggests that chances are...they weren't. Saving a million dollars in a month probably isn't realistic, and sometimes saving one hundred dollars in a month isn't either. It all depends on your circumstances — what you're bringing in (income) and what's going out (bills, cost of living, etc). Take note of what you're working with so you can adjust accordingly.
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2. How do I need to optimize to be able to achieve those goals?
Sometimes you can make simple changes in your spending, but other times you may need to re-evaluate your money goals a little bit. Dunlap suggests asking, "What is the new goal that I need to set that is actually achievable?"
Sit down with your expenditures, actually find out what's left over from paycheck to paycheck after you pay your bills, and set your goals from there. Once you approach money in a way that makes sense for you, you're more likely to follow the plan.
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3. What plan am I actually gonna do to achieve those goals?
Dunlap is adamant that "a goal without a plan is just a wish." And she's right! We can hope and dream for the million dollar savings account all we want, but if we want to make that happen, then we need to kick it into high gear with some action. Not just any action either — intentional, well-thought out choices that you can put in motion with the plan you set for yourself. This could include, but isn't limited to:
- Knowing what you're saving for — vacation, wedding, house, retirement, etc — and putting a name to it.
- Automating your savings by having a specific amount of your paycheck deposited right into your savings account.
- Setting a "going out budget" so you can still enjoy rooftop cocktails and other fun with your friends within reason and without overspending.
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Header image via Karolina Kaboompics