Mid-Year Money Check: Quick Tips on How to Review Your Finances

 

It’s hard to believe we are already at the half way mark of 2025.

 

Not so long ago we were ringing the new year in and making resolutions!

 

With six months gone, now is a good time to look back and see how much progress we are making on the money front.

A mid-year financial check-in is time to monitor our progress and make smart adjustments before the year wraps up.  It’s also time to celebrate achievements, however small! What it’s not, though  is a time to beat ourselves up over goals we have not met. Life happens...

 

So here goes:

1.    Revisit your January money goals

What were your money resolutions or plans at the start of the year?

• Pay off debt?
• Start saving consistently?
• Learn to budget?
• Spend less on impulse buys?

If so, take a minute to ask yourself what’s worked? What hasn’t? what are some of the challenges you have faced and what can you do to solve them?

·       Are your goals still relevant? Maybe your priorities have shifted for instance now you’re saving for a plot of land and not a car.

·       Are you on track? Look at your savings or investment progress toward goals like education, retirement, or owning land or a home. If not, identify the barriers that may have held you back and adjust your goals accordingly. Breaking down big goals into smaller tasks makes them more manageable and helps you stay motivated.

For instance, if you are new at the saving game and saving 10% of your pay each month is making you want to run for the hills here’s a trick to try. How about for the next six months you start with 1% and then increase the rate every month? That may feel more doable as your mind adjusts to a new habit of saving.

 

2.    Adjust your budget

Take a look at your budget and expenses from the past six months. Compare your actual spending to your budget and identify areas where you overspent. Adjust your budget to reflect any changes in your income and your spending.

Did your income increase, reduce, or become more irregular? Did you take on new responsibilities like paying school fees or medical bills?

Now is a great time to:

• Add new priorities e.g. “saving for Christmas season” if you haven’t already started.”
• Remove what no longer serves you (e.g. unused gym subscriptions)
• Reallocate funds to priority goals to help you stay focused on what’s most important. For example, if you notice that you’re lagging behind on building your emergency fund you may want to cut back on things like data for streaming and to re-allocate that money towards your emergency fund.

3.    Check your spending patterns

Where has your money actually gone these past six months?

Look through:

• Mobile money and bank statements
• Airtime and data usage
• Grocery shop and supermarket receipts
• Loan repayments

 

Ask yourself:

• What surprised you?
• What financial decisions are you proud of?
• What can I change about my spending?

4.   Review your savings  

• How much do you have in savings? Do you have an emergency fund?
• Are you contributing to a SACCO, or savings group?

If you're behind it’s okay. Knowing where you stand is a win already and you have six months to play catch-up.

If you are behind on your savings goals, ask yourself if this is as a result of poor saving habits or having a low income? For instance, if your plan was to save 5% of your monthly salary but you have not done that, what is the issue? Might you need to cut your expenses further? Or start a small business on the side to help you make ends meets and also achieve your savings targets?

 

5.    Check your debt

Take stock of your current debts and review the interest rates and repayment terms. Do you know exactly how much interest you are paying on that mobile loan? Track your repayment progress and prioritize paying off high-interest debts first. Set a target date for becoming debt-free and create a plan to achieve it.

 

6.   Review your investments

Review your investment portfolio and rebalance if necessary to align with your financial goals. Adjust your investment strategy to optimize your returns: 

• Are you still comfortable with your investments? Are you ready to take on more or less risk?
• How have life events changed your investment strategy? For instance, if you have got a better paying job, how do you plan to harness that extra money to help you up your investment instead of blowing it all?

 

7.    Set some clear money goals for the rest of the year

Don’t overwhelm yourself. Choose one to three realistic, meaningful goals that reflect your current reality.

For instance:

• Save UGX 300,000 by December
• Pay off 50% of your mobile loan
• Track all spending for the next six months
• Learn one new skill to increase your income

 

 Now get out your pen and notebook… or Excel sheet and get started!

By Martha Songa

miss.songa@gmail.com