Goals for the New Year

No one ever said that managing money was easy. In fact, it usually includes setting a budget, making sacrifices, and consciously working to spend less. What’s worse is that people often want to set goals, but the execution goes over poorly, sometimes setting you back even further. Time to set goals for the New Year. 

Is setting a money goal for the new year something you want to do and succeed at? If so, you are not alone. Being intentional with your finances is the key to success and setting tangible goals will help achieve it. Here are some goals you can set, manage, and attain during the new year. 

To begin with, you must keep in mind that your goals need to be achievable. Most people can’t say ‘I want to be rich by the end of the year.’ Sure you made a time goal but what does rich even mean to you? Instead, you must consider real, tangible goals that you know you can achieve. Failing at your financial goal could have a nasty effect on the rest of your finances. This might mean starting small to ensure you can reach the goal first before shooting higher. Being successful in the beginning will give you motivation and drive to keep going. 

Next, you just really need these 4 simple steps for setting your achievable financial goals. Setting a goal not only needs to be realistic and achievable, but it must be designed in a way that makes sense. Here are the steps you should follow to reach your financial dreams. 

Be Specific with Goals for the New Year

As mentioned above, your financial goal for 2021 should be specific. Just wanting to be rich is one thing, but being specific will actually set the tone for your work. You need an inspiring goal that is well-crafted with as many details as possible.

So, instead of saying you want to be rich, consider putting a price tag on it. Your goal could be to put $5,000 in your savings account. It could also be paying down debt, making an extra mortgage payment, or starting a vacation fund.

Set the Date

To hold yourself accountable, you need to set a due date. No goal will ever be achieved if you don’t put a deadline on it. This will help you focus on the goal more closely. So if you want to put that extra $5000 in your savings account, add that you want to do it over the next six months. If you want to start a vacation fund, write your goal out to include a dollar amount and the due date. Are you trying to pay down debt? Your goal can be that you will pay off your credit card within the next 6 months.

Think About Your ‘Why’ for Goals for the New Year

Why are you making any financial goals at all? What is your ‘why’? We all know that life changes when goals are met or finances are freed up, but really tackling your ‘why’ will help you understand your goal much better. Perhaps your success means a better opportunity for yourself or your family. It could mean freeing up money to spend on entertainment or adding to a family vacation fund. Your ‘why’ can be the driving force when things get tough or tight. This should be written down right next to your goal to be used as a reminder to keep going.

Break it Down 

Now comes the part to develop a plan. You have the goal, the due date, and the ‘why’. Next, you need to have steps to reach this goal. For example, if you are trying to pay off a debt, you must know the exact amount you owe, and then what you need to pay each month in order to pay it off in time for your deadline. If you are trying to save up cash, you can do the same thing.

What you will need to do next is figure out where the money is going to come from. Are you dropping a bill? Have you picked up a part-time job? How will you budget this new financial goal to make it feasible? This could be a combination of things to help you reach this goal. 

Bottom Line

Setting solid money goals for the new year can be done. In order to be successful, you must follow these specific 4 steps so that you have something tangible to follow. You can set yourself up for financial success when you give yourself the tools, the motivation and the drive to do so.