Goal Setting for the New Year

As things start to slow down and the year comes to a close, it’s only natural to start thinking about the next year and what you’d like it to have in store. Every January so many of us set resolutions, and December is a great month to reflect upon them to see how you progressed and think about what you want to achieve next.

Among the resolutions and aspirations, should be some financial goals, as doing so can help you pave the way towards a more stable future. Serving as a roadmap, financial goals help to guide us toward fiscal responsibility, and security, and even help us to realise our dreams. Whether it’s paying off debt, saving for a big purchase, or investing in our future, establishing clear financial objectives provides direction and motivation towards the things we want to achieve. But how do you know what goals to set?

Some examples of financial goals include:

Creating a daily/weekly/monthly budget
Saving for an emergency fund or that purchase you’ve been dreaming of
Paying off or minimising debts
Increasing the amount you save each month
Beginning to invest

Once you have a vague idea of what direction you’d like to work towards, your next steps are to:

Review and Reflect

How did last year go? Did you achieve the goals you set out to? If you achieve them too quickly, it shows that you need to dream bigger with your goals for next year. And if you didn’t manage to achieve them, reflect on the reason/s why. Were you overambitious? Or did something happen that prevented you from being able to progress? Reviewing and reflecting upon our goals helps us to analyse the situation and better understand ourselves.

Create SMART Goals

In business, they say that when you set goals they should be SMART. Specific. Measurable. Achievable. Realistic. Timely. They do this because we can all say we want to save more. But leaving it vague means it’s open to interpretation and we don’t really commit ourselves. By making our goals SMART, we are setting a time-bound promise to ourselves. One example of a SMART goal could be wanting to put 3% of your monthly salary into your savings account for the next 12 months.

Set Yourself Up for Success

Once you have your goals, it’s important to set yourself up for success. For example, if you find that you always say yes to spendy social plans and you want to save more, planning themed nights with friends ahead of time can help you to stay on track whilst still having fun. Or to use the SMART example I mentioned previously, if you want to save a percentage of your salary but are concerned you might forget, setting it up as an automated payment into your savings account on a set day each month can help to set yourself up for success.

Don’t Be Afraid to Readjust

Circumstances change, and sometimes we need to readjust, so regularly reviewing our goals is essential. Be flexible and willing to adjust your plans if needed. After all, life is dynamic, and so should your financial plan!

Remember, whatever your goals may be, consistency and commitment are key. So, set yourself up for success, celebrate milestones along the way and stay adaptable as your life evolves!