The one thing I love about the New Year is that it feels like a fresh start. While many might think that setting resolutions for the upcoming year is contrite or overdone, it’s always a good idea to have a plan and goals, especially when it comes to your finances.
The sad truth is that if you don’t have plans and goals for your money, you will stay stuck in your financial situation. The majority of successful people out there didn’t get to their levels of success just by chance. Successful people succeed because they continually push themselves with goals and action plans.
No matter what your financial situation is this January, you can drastically change it by the end of 2015. There are millions of people drowning in debt, living paycheck to paycheck, and struggling with where to start. If you are one of these people, don’t think that you have to stay here!
Worthwhile Financial Goals to Consider Setting
This month, I will be going through several worthwhile financial goals to have. Each goal will come with action steps that anyone can do to reach and succeed in this goal. Don’t let your financial resolution this year be to “save money”. That resolution won’t get you anywhere.
Instead, have concrete and worthwhile financial resolutions, such as one of the following:
- Have Retirement Savings Started and Growing
- Have an Emergency Fund of $X
- Pay Off $X of Debt
- Create a Budget and Actually Stick to It
- Decrease Your Overall Spending by $X
- Get Life Insurance
- Enjoy Life and Stop Being Stressed About Finances
- Increase Your Income by $X
Creating an Action Plan
The biggest problem people run into when it comes to setting resolutions is that they are too vague, and there’s no action plan behind them. Simply writing a list of resolutions in the beginning of the year isn’t going to benefit you by the end of the year. You need to write out concrete goals and have actionable steps that will lead you to the success of those goals.
I will be tackling the above major financial goals and giving you suggestions for action steps. Start thinking about how you can break up huge resolutions into weekly steps. For example, one goal can look like this:
Resolution: Decrease My Monthly Spending by $300
- Create a budget
- See where I am overspending
- Brainstorm ways to save money
- Call cable company and cancel cable subscription
- Switch cell phone carriers
- Call car insurance company to see if premium can be lowered
And the list could go on. The goal of decreasing your monthly budget can be daunting. But when you break it down into little action steps, the task isn’t so overwhelming. Everything on that list can be done in a day, and most of the tasks will take less than an hour. If you come up with a list of 20 small action steps, you can complete your list in less than a month.
Stay tuned for our series featuring the worthwhile financial goals mentioned in this post!
Do you break your goals down into smaller parts? What worthwhile financial goals did we miss that you’d like to see mentioned?