New Year, New You - Ringing in the New Year with Counting Quarters
New Year, New You – that means new goals and new beginnings, including financial ones! Financial goals boost our financial wellness and help us gain more confidence in making money-related decisions while considerably reducing financial stress. If you’re ready to set yourself some financial goals, we’ve got a couple of tips that can help you map out a plan that supports your needs and sets you up on a path to succeed.
📍Setting Financial Goals ✔️
1. Focus on Yourself!
Being aware of your current expenses and habits helps you create goals that fit your circumstances. Ask yourself questions to understand what truly matters to you – rather than others. What are your attitudes and beliefs about money? What about your strengths and weaknesses in managing your finances? What habits would you like to maintain, and what habits will you leave in the past?
2. What Do You Want to Achieve? Start with an Idea.
Before making any changes, identify what you hope to achieve through your changes. “I want to eat out less,” “I want to start investing in the stock market,” “I want to pay off my credit cards in full and graduate debt-free” – these are some examples.
Maybe you have multiple goals and don’t know what to do next, that’s perfectly ok! With what you’ve been able to learn about where you stand right now, you can determine which ambitions are short term, long term, or yet to be decided.
3. Create a Focused, Realistic Plan!
Now… When it comes to goals, bigger isn’t always better. Don’t scrap those seemingly unreachable goals entirely though – try making adjustments and break that goal down into measurable chunks that you can achieve with more ease. What are the steps you will take to reach your goal?
But what about those events or expenses that suddenly appear and throw our plans into a loop? The sooner we accept it, the easier it gets; proactively finding a way to accommodate and prepare for these surprises can help you focus your strategies and prepare yourself to face these challenges with confidence. For example, you could start an emergency fund – a bank account/cash reserve that’s set aside as a financial safety net for unplanned/emergency expenses – in case your car suddenly needs a major repair.
Thinking SMART 🤔
SMART Goals are…
Specific: “What exactly do I hope to accomplish?”
Measurable: “How will I know if I’ve achieved it?”
Attainable: “What are some small steps I can take to achieve it?”
Realistic: “Why is this goal relevant to me? Does it align with my needs and values?”
Time-Bound: “What’s the reasonable time limit?”
SMART help you identify exactly what you want and how you plan to achieve it. In considering each “SMART” aspect, you learn to self-reflect, find direction, stay motivated, and take action with healthy habits that will support you as you achieve these goals.
4. Leave Room for Mistakes and Don’t Forget to Treat Yourself!
No-one is perfect! Leaving room for error makes space for improvement; you don’t have to get everything right the first time around. Setting goals shouldn’t feel like a chore; reward yourself for making progress and meeting your objectives! Strike a balance between those high-priority goals and the ones you’re most excited about, you’ve got this!
5. Externalizing Those Goals Can Help!
Finances can be a hard subject to talk about, but sharing your goals – money-related or not – with your friends and/or family can help you stay accountable and on track!
“An Investment in Knowledge Pays the Best Interest” - Benjamin Franklin 📚
Beyond setting financial goals, in the long run, investing in yourself, in your passions, and into learning will accumulate and bring bright returns in your favor! And, that is the beauty, the art of accumulation.
Sources: The Street, Investopedia, WSJ, MindTools, and our fav - Ben Franklin <3