My New Year Financial Goals
It’s a New Year! This usually means a fresh start or a new chapter in life waiting to be written. So, while you have your New Year's cap on, let's take this chance to talk about how to set personal financial goals that will get you closer to the life you want and make this year your best year financially.
I totally love writing down my goals at the beginning of each year, but what I do differently is I further break them down into monthly and weekly goals. For me what works best is to write what I need to achieve on a weekly basis, then start working on them daily. Not only does this make it less daunting, but it also allows me at the end of each week to reflect on how I’m progressing.
Below are tips on how to set your financial goals
Set SMART goals.
Your financial goals should be Specific, Measurable, Achievable, Realistic and Time-bound.
Financial goals are best achieved when they are specific and have a time frame attached to it. Think of it as going shopping for clothes for a specific event, If you just say you want to buy an outfit, you’re probably going to waste a lot of time and money and end up buying unnecessary things. However, if you say you want to buy shoes, pants and a top and you are going to be spend a total of RX you’re going to buy all that you planned and might even spend less than budgeted for.
Know your “Big” financial goals
Robin Sharma gave this advice on goal setting “Know your “Big 5”- the 5 goals you absolutely must achieve by December 31 to make this year your best yet”
I would advise you write them down and further break each one down to monthly and then weakly goals. You don’t have to set 5 goals. I only have 3 Big financial goals this year. For an example, if you want to be debt free by the end of the year, your big goal would read: “DEBT FREE BY YEAR END”. Then you write down the accounts that you need to pay off each month or week. Search for stuff you might need to sell to pay off your debts.
Schedule weekly financial exercises
This time of year, most of the regular gyms will be filled with people exercising to get back into shape after the holidays, and just like there’s physical exercises for our bodies, there are financial exercises for our incomes and expenditures. Financial exercises would include, staying in balance in terms of your weekly spending. Educate yourself and read a book or listen to a personal finance podcast.
Measure your progress
It is important to measure your progress throughout the year. This way you know whether you have achieved your weekly goals or not. This is also to see whether you need to make some adjustments in terms of how you have broken down your big financials etc.
So take some time to jot down some things you would like to achieve or improve about your financial life this year and DO them! Make this year your best year financially.