By Keletso Mpisane, head of Blink by MiWay

The year’s midway point is the perfect time to reflect on the financial goals we set out to achieve when the year started. We all have different budgets, costs and wishlists to consider, but there are a few universal principles that can help us meet our financial goals.

Our money can go to fixed expenses like housing, car payments and credit cards. Or it goes to costs like petrol or groceries which change monthly, or those that are easy to cancel like a subscription service.

Knowing how to manage both kinds of expenses is vital.

As we set goals at the beginning of the year, a mid-year stock take can help us understand our spending behaviour, catch bad habits that lead to overspending and develop strategies for financial discipline.

Managing fixed costs

The first stop on the road to meeting your year-end financial goals is to look at where your money has been going in the last six months. Start by reviewing your budget.

The dreaded ‘B’ word can make us feel anxious, but reviewing bank statements and knowing where your money has gone will help you feel in control.

This method helps us differentiate between our needs and wants. Fixed costs like your bond, rental payments or debit orders for insurance cover are essential for keeping your assets safe.

Once you’ve labelled your wants and needs, review which expenses you will be keeping and which you can do without.

Review your insurance

Although it’s a fixed cost once you have it, car insurance is considered short-term insurance. You can gain sizable savings on a policy from speaking to your provider about available bundling options or discounts that could apply to you.

If you have changed your residential or work address during the year and especially if you have remained claim free, this tip can save you money.

In some cases, your premium could be reduced or you could learn about new ways to save on your policies through loyalty rewards or paying less for having different kinds of cover with one provider.

Prepare for vehicle related expenses

Saving money today can mean being prepared for tomorrow’s uncertainty. Vehicle damage can happen at any time and being ready will help you avoid dipping into that holiday savings fund for car-related emergencies.

Car owners should consider the costs of consumable car parts. Do you have enough savings to replace tyres or windshield wipers? If not, it's advisable to save up and be prepared for emergencies.

Since these costs can quickly add up, another route to consider is purchasing a motor plan. Motor plans cover servicing and repairs for faulty components, and they can encompass virtually everything outside of fuel, for an additional monthly cost.

This can help you avoid unexpected costs like replacing a tyre, brake pads or major repairs.

Fixing your flexible expenses

You’ve reviewed your budget and had a detailed look at your essential monthly expenses – it's time to ask yourself a critical question: what purpose is this expense serving?

This question isn’t meant to invoke guilt, it's to help you get a clearer view by linking the expense to a purpose. If you’d like to save more, this could help you see where extra savings could come from.

When you have a streaming service, you have been paying for without using, it will be easy to cut that cost now that you have clarity on how it fits into your broader financial goals.

Stay on top of debts

Now that you are clear on your needs versus your wants, it's time to review your debts. Being debt free is often a major financial goal for people and there are two approaches to consider: save money by reducing interest or using the snowball method.

In the first approach, you would list out all your debts according to their interest rate and put more money towards high-interest debts first. This will save you money in the long run because it reduces the amount of interest incurred.

If this sounds daunting, you might want to focus on your smallest debt first. Interest rates could lead you to paying more over time but crossing off a debt can motivate you to take on the next one.

However you choose to approach money management, being kind to yourself, knowing your habits and having regular review points are just some key principles to apply to arrive at your desired financial destination by the end of the year.