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We all set resolutions at the turn of the year that include financial goals for the months ahead. Some pan out, and others maybe not so much. No judgment—life happens!
But here we are once again setting goals in the new year. Actively monitoring your goals is important for your financial fitness, so don't just set them and forget them.
Reflect on Last Year's Goals
Take a moment to reflect. What financial moves paid off last year, and where was there room for improvement? Did you miss any monthly bill payments? Fall short of your end-of-year savings goal? Give yourself credit where it's due and learn from the rest to commit to changes in the new year.
Set Savvy Money Goals
Consider your aspirations and how you can do things differently this year to achieve them. Whether it's trimming unnecessary expenses, building an emergency fund or paying down old debt, your money goals should seamlessly mesh with your budget to keep them doable.
Make Your Goals SMART
Let's talk SMART goals—Specific, Measurable, Achievable, Relevant and Time-bound. It might sound business-like, but they're practical.
Is your goal to trim unnecessary expenses?
Make it SMART: Reduce monthly expenses by 10% over the next 90 days.
SMART goals are clear and give you a deadline to measure your success by. The SMART method isn't just for your financial wellness goals. Try converting all your resolutions into SMART goals using our SMART goals worksheet.
Break Big Goals into Mini Goals
Another way to tackle big goals is to break them down into manageable steps. Think of it as eating a steak—mouthfuls are tough and take forever to chew. Small bites, however, are easy and help you finish faster. These small wins add up, and before you know it, you'll complete the bigger picture.
Align Your Goals with Your Values
What truly matters to you? Your money goals—in fact, all your goals—should align with the things you care about. For example, if charitable giving is important to you, create a SMART goal to determine how much you should save each payday for the charity of your choosing. Life's too short for goals that don't resonate with you. Plus, they're easier to complete when you care.
Check Your Monthly Progress
Don't wait until December to review your progress. Regular check-ins help us stay on track and discover areas that need improvement. Don't be discouraged if you're not on track for your goals. Try monthly adjustments as necessary to get back on track. Remember, goals are not permanent. If it becomes clear that a goal you set is unattainable, it's okay to move the needle to make it more encouraging and realistic to reach.
As you navigate your finances this year, remember it's not just about the destination. How you get there and the changes you make along the way are just as important. Meritus Credit Union members have access to free financial coaching, so reach out to us if you need help planning your money goals. Here's to a financially healthy year!
