Kick-started a financial plan back in January 2019? It’s time to review your progress so far!
It is typical for most of us to make resolutions at the beginning of a year. We perceive a new calendar as a fresh opportunity to start things on the right note. Financial resolutions are also a common trend, and today, we’re going to tell you how you can review a financial plan you may have made back in January, and also help you do a reality check on whether it has worked so far or not, as well as corrective actions you could take. Sounds interesting? Let’s go.
Review the first four months of the calendar year
The first four months (that’s a third of the calendar year) are up, and since you’re stepping into the fifth month now, it’s the ideal time to review your financial plan’s actual performance.
Do the following checks:
- When multiplied by three, do your savings match up to your annual saving goals
- Has any new channel of expense opened up
- Has any new avenue of income opened up
This first set of checks will give you a clear heads up of how to approach the rest of the year. If your savings are on track, you’re probably doing things well. If they aren’t, you may have had to handle more expenses than you had projected during your planning stage. On the other hand, if you’ve managed to save up more than your expected target, it may be due to an unexpected cash inflow too!
Additional Reading: 6 Common Budgeting Blunders And How To Fix Them
Make Necessary Amends
The obvious next step is to revisit your current financial plan and make necessary amends in order to get your mission on track. Introduce new income channels or expense points as applicable and recalculate your annual goal accordingly.
Foresee Other Factors
When it comes to recent changes in your life, you will now have a better idea of what else you may have to consider in the coming months than you did back in January, so make sure you forecast any other possible expense before you complete your list of amends.
Additional Reading: The Dos and Don’ts of Budgeting. Read On To Know More
Have you Kick-started Your Investments As Planned?
It is easy to put off an investment plan, but you cannot delay it to such an extent that you only realise at the end of the year that not even one of your investment plans has kicked off. When it comes to investment plans, be realistic and humble, but commit to it. At the end of the day, small investments are still better than no investments.
If you find that none of your investments have been rolled out as planned, revisit your plan and draw a realistic target that you can meet by December 2019.
Consider Monthly Reviews
If you find reviews every four months to be too far apart, you can always switch to monthly reviews so that you can exercise more control over your plan. The way you want to review is completely up to you; it depends on your comfort and convenience.
Additional Reading: 4 Possible Leaks In Your Budget
“Umm… I Totally Forgot About My Financial Resolution For The Year”
If your reaction to this post is this, you’re not alone. Don’t fret though, you can always get a solid plan from May 2019 and project it until May 2020 – it’s never too late. If resolutions were that easy to follow, most of us would be at the top of our physical fitness and personal finances, so don’t let your inability to pursue your resolution bring you down. If anything, this minute failure may enforce a strong intent in coming up with a plan that you’ll stick to no matter what!
Don’t forget to leave room for any credit decisions you may make this year, such as applying for a Home Loan, Personal Loan or Credit Card!