Is Your Budget Still Working for You? Let’s Check. 💸
Editor’s Note
Hey friend! 👋
We're halfway through 2024—and it’s the perfect time for a budget check-in. Whether you're getting your first paycheck, juggling side gigs, or just trying not to spend your entire rent on iced coffee and concerts (relatable), this week’s newsletter is for you.
Think of it as a money reset. We’ll help you look back, look forward, and figure out what’s working—and what’s draining your wallet. The mid-year budget review is all about getting back in control without guilt or stress.
And be sure to check out the Weekly Challenge! Cheers,
The Picoast AI Team
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💸 Mid-Year Budget Reset: Make the Second Half Count
Budgeting isn’t just some tedious spreadsheet chore—it’s your game plan for making sure your money isn’t disappearing into a black hole 🕳️💸. Think of it as assigning every dollar a job. Rent, groceries, emergency fund, a vacation fund—every dollar needs a role. Otherwise, you’re just guessing, and let’s be honest, that rarely ends well.
Now, here’s where most people drop the ball: they make a budget in January and then forget it exists by March. That’s why a mid-year budget check-in is actually super useful. It's your chance to ask: Am I actually sticking to this? Did that “monthly savings goal” turn into takeout and impulse buys? 🍕🛍️
If your income changed, expenses went up (hello, rent hikes), or your goals shifted, your budget needs to catch up. It’s not set in stone—it’s a living thing.
Don’t wait for December to realize you’ve been way off track. Mid-year is the perfect “reset” button 🔄. Use it.
No time to read all the tips? Here’s the TL;DR: 📱💪
🔍 Review your current situation: Check your income, expenses, debt, and goals. Has anything changed since January?
💸 Update your budget: Adjust for real spending, seasonal costs, and any life changes. Give every dollar a job.
📆 Cover needs → fund goals → spend on wants: In that order. Always.
📊 Do weekly check-ins: One look at your bank account can stop a trainwreck before it starts.
🧼 Cut waste: Cancel at least one subscription you don’t use. You won’t miss it.
🔙 Look Back: Your Mid-Year Money Review
Before you start changing anything in your budget, you need to know what’s actually happening. Are you spending what you thought you’d spend? Earning what you expected? Still working toward the same goals?
This first section walks you through a full mid-year check-in. That way, when it’s time to update your budget, you’re not guessing. You’re adjusting based on facts.
1. Check your income ✅
Write down your monthly income after taxes. Include paychecks, side gigs, regular money from family or benefits. If it hits your bank account or piggy bank, it counts. Round down slightly so you’re not planning to spend more than you actually have. Compare it to what you assumed at the beginning of the year (if you have a budget).
2. Review your spending 💳
Open your bank, credit card, and digital wallet apps—and anything else you use to track what you spend. Look at where your money has gone over the past 3 months. Most banking apps give you a summary of your expenses by category, which can be super helpful. Compare how you’re spending to how you thought you would spend. 🧠 Example: If your grocery budget is $300 but you’ve been spending $420, your budget needs to match reality—or your habits need to shift.
3. Think about life changes 🔄
Ask yourself: Is my job stable? Will my rent go up this year? Did I move, graduate, or take on new expenses? Your budget has to match the life you’re living now—not the one you planned in January.
4. Recheck your debt plan 📉
If you’ve got debt, are you paying more than the minimums? Are you tackling the highest interest rate first? Could you refinance to lower your interest?
Tip: Credit card debt grows fast. Prioritize it.
Learn more about managing debt in Module 3 of the Financial Literacy pathway in the Picoast app.
5. Plan for upcoming costs 🎁
Make a list of birthdays, travel plans, back-to-school shopping, big purchases you’ve been thinking about. Start setting money aside now—even $20/month adds up.
6. Cancel subscriptions you don’t use 🔍
Open your app store and your bank statement. Cancel anything that’s auto-renewing without you noticing, not being used, or not worth the price anymore.
7. Set or update your goals 🎯
Check your progress. Did you hit any of your savings goals early? Are you behind? Set a new savings target and adjust an unrealistic one. Use Picoast’s Goals tool to keep track of how you’re doing.
Learn more about setting financial goals in Module 2 of the Financial Literacy pathway in the Picoast app.
8. Review your insurance 🛡️
Review your health, auto, home, pet, and other insurance policies to make sure they still fit your needs and are affordable. Shop around if needed. Prices change.
9. Check your investments 📊
If you’re investing:
Log in and see how things are going
Confirm your money is still spread out (diversified)
Consider whether your timeline or risk level has changed
No need to micromanage—but don’t ignore it either.
Learn more about investing in Module 2 of the Financial Literacy pathway in the Picoast app.
10. Update your tax withholding 💼
Had a job change or freelance income increase? Use a free withholding calculator or ask HR for help. This can help you avoid surprise tax bills or overpaying throughout the year.
Once you’ve reviewed your income, spending, goals, and upcoming costs, you’ve got a clear picture of where things stand. Now it’s time to take that info and build a version of your budget that fits where you are right now—not where you were six months ago.
🔜 Look Ahead: Update Your Budget for the Rest of 2025
A good budget doesn’t just sit in a spreadsheet—it needs to reflect what’s really happening in your life. This section walks you through how to take what you just learned in your mid-year review and rebuild your monthly budget from the ground up.
Then we’ll show you how to actually stick to it—budgeting isn’t something you check in on twice a year and call it good—especially if money’s tight. Managing your money needs to happen month-to-month, maybe even week-to-week if your income or expenses bounce around.
1. Start with the “Needs” 🧾
Start your updated monthly budget by listing all the essential stuff before you start budgeting for anything else: rent, groceries, utilities, transportation, medicine—you know, the basics you can’t skip (we share a full list later). Calculate the amount by month (e.g., if your yearly rent is $6,000, that’s $500 monthly).
But don’t stop there. Think ahead. Some expenses only show up a few times a year, and they love to sneak up on you. Think higher heating bills in winter ❄️, back-to-school supplies 🎒, car insurance every 6 months 🚗, or allergy meds in spring 😷.
Let’s say you spend $180 every August on school stuff. You can either budget all $180 in August (if your income can handle it), or set aside $15 every month so it’s ready when you need it.
2. Then fund your financial goals 💰
Once the needs are taken care of, shift to financial goals. These might include building an emergency fund, saving for something specific, or paying down debt faster.
Use what you discovered during your mid-year review to make these realistic for your current situation.
Start with the big safety nets—emergency fund, annual insurance deductibles, whatever keeps your finances from falling apart during a bad month.
Example: Want $600 in your emergency fund by year-end? That’s $50 a month. Easy math, hard habit—but worth it. After that, budget for smaller stuff. Want those $100 sneakers in two months? That’s $50/month. No guilt, no impulse-buying panic.
3. Then you can spend on “Wants” 🍕🎮✈️
Now we’re talking fun money—eating out, streaming services, travel, hobbies, new gadgets. But notice the order here: needs ➡️ goals ➡️ wants. That sequence makes all the difference between financial freedom and financial chaos. This part of your budget adjusts based on how much is left after Needs and Goals are covered.
5. Weekly Check-Ins (Don’t Skip This) 👀
Once a week, open your bank app. Seriously—just check in. See where your money’s going. Spending more than expected? Cut back somewhere or make room next month. Small corrections = less drama later.
The Picoast app’s Budget tool will ask you every week to hit a thumbs up or a thumbs down to help you stick to this discipline.
Your Cheatsheet: Don’t Miss These Expense Categories 🗂️
Worried you’re forgetting something in your budget? Happens to everyone. To make sure nothing slips through the cracks, check out the list below—it covers the most common expenses for young adults. These categories can also be found in Picoast’s Budget tool when you create a new budget.
And don’t just rely on memory—scroll through your bank and credit card statements too 🕵️♀️. That’s where the “oh right, I do pay for that every month” moments tend to pop up.
🧾 Need/Fixed: Non-negotiable and consistent
Rent/mortgage
Insurance (e.g., health, dental, car, rental)
Loan payments (e.g., student, car)
Education-related expenses (e.g., tuition, student fees)
🧾 Need/Variable: Non-negotiable but fluctuating
Utilities (e.g., electricity, water, gas, internet, phone plan)
Essential groceries
Transportation to essential destinations like work, school or grocery store (e.g., public transport card, gas for car, car maintenance)
Basic personal care (e.g., toiletries, hygiene products, and cleaning supplies)
Healthcare (e.g., out-of-pocket expenses for prescriptions, doctor visits, medical supplies)
Pet care (e.g., food, basic medical care)
Education-related expenses (e.g., books, supplies)
Essential technology (e.g., laptop for school or work, antivirus)
Basic clothing and home maintenance (e.g., if your only winter coat rips; HVAC filter or lightbulb replacements)
🧾 Financial Goals: Emergency funds, debt repayment, and savings
Emergency fund (e.g., for medical emergencies, car repairs, home repairs, loss of income)
Debt repayment
Retirement savings (e.g., 401(K), IRA)
Goal-specific savings (e.g., down payment for a home, education, big purchases like a car or an appliance)
🧾 Want/Fixed: Non-essential but consistent
Subscription services (e.g., Netflix, Spotify)
Gym membership
Regular donations
🧾 Want/Variable: Non-essential and fluctuating
Dining out
Entertainment (e.g., movies, concerts)
Shopping (e.g., clothes, gadgets)
Travel and vacations
Hobbies and interests (e.g., music, sports)
Gifts and donations (e.g., birthdays, charitable donations)
Personal care beyond the basics (e.g., haircuts, skincare)
Technology beyond the basics (e.g., upgraded gadgets)
Pet care beyond the basics (e.g., toys, luxury items)
Transportation to non-essential destinations
Conclusion
Budgeting isn’t a one-time thing you check off your adulting list—it’s a habit. And like any habit, it works best when it’s tied to what’s actually happening in your life. This mid-year check-in is your chance to reset, adjust, and make the second half of 2025 more intentional.
You don’t need a perfect budget. You need one that reflects your real income, your real expenses, and your real priorities. Update it. Use it. Check in weekly. Make tweaks when life changes. That’s it. No more “how did my bank account hit $4?” moments.
Your money should work for you—not confuse you, stress you out, or quietly disappear. So take what you learned and update your plan. You’ve got this. 💪
Challenge of the Week: 30-Minute Budget Reset
⏱️ Pick 30 minutes this week
📊 Skim your last 3 months of spending
🔧 Adjust your budget and categories in Picoast
🧼 Cancel one subscription
📣 Share your experience on social media, using the hashtag #MidYearBudgetChallenge and tagging us (@picoastai)!
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