Last updated on January 15th, 2023 at 11:19 am
Have you made financial resolutions for the new year? The start of a new year is the perfect time to reassess our financial situation and make a plan for achieving our goals.
Whether you’re looking to pay off debt, save more money, or invest for the future, setting a few financial resolutions can help you stay on track and make progress towards your goals. Keep reading to learn more.
How to Set Financial Resolutions for the New Year
Take stock of your current financial situation
First things first, before we can set meaningful financial resolutions, it’s important to have a good understanding of our current financial situation.
Take stock of your income, expenses, debt, and savings to get a clear picture of where you stand.
With this information, you identify the areas where you can make changes and improvements, whether that’s saving money, paying down debt, or starting a retirement or college fund.
Set specific, measurable, and attainable goals
Once you have a clear picture of where you stand, it’s time to set some financial resolutions.
You want to make sure your goals are specific, measurable, and attainable.
What does that means? Instead of resolving to “save more money,” set a specific savings goal, like “save $2,000 for an emergency fund” or “save $15,000 toward a down payment on a house.”
Since I want to do more travelling, I’ve recently challenged myself to set savings goals to fund vacations.
When you have a specific goal in mind, you become much more motivated!
Make a plan, and track your progress
With your financial resolutions for the new year in mind, it’s time to make a plan for how to achieve them.
Break your goals down into smaller, manageable steps to keep from feeling overwhelmed. Then, set a timeline for when you want to achieve them.
For example, if you want to save $1,000 for an emergency fund, you could set a goal to save $83.33 per month for 12 months. You could even break it down further into a weekly savings goal.
Or, you might have a debt you want to pay off. Set a goal of having a certain amount paid off by the end of the year, and break that up into monthly or weekly payments.
Remember to track your progress! Seeing how far you’ve come is always a great motivator to keep going.
Be flexible, and adjust your plan if needed
We know that life is unpredictable, and things don’t always go according to plan. Try your best to stick to your financial resolutions, but be open to adjusting your plan as needed.
If you’re finding that making progress is more difficult than expected or you’ve miscalculated something, of course, you’ll want to reassess your goals. Then make adjustments. Unfortunately, I’ve had more than one occasion where my priority shifted from how much money could I save to how to get money fast because a major appliance broke down or my car needed an expensive repair.
The important thing is that you make steady progress, even if you sometimes get knocked off course.
Setting financial resolutions can be a great way to hold yourself more accountable when it comes to your money goals.
You’ll want to take stock of your current situation, set specific, measurable, and attainable goals. Then, make a plan, track your progress, and always be flexible.
With a little bit of planning and effort, this year can be the year you achieve your financial goals!
Remember, it’s not about being perfect, it’s about making progress and being flexible along the way. Happy New Year!