After the year of 2020, it’s safe to say we are all ready to start a new year! Many of us will be looking to 2021 as a time to set new goals and resolutions to make our lives the best that we can. That can mean getting into shape, healthy eating, more family time and setting financial goals.
Everyone has different financial goals but there are a few steps you can take to help set yourself up for a successful new year:
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Set SMART goals – SMART is an acronym that stands for specific, measurable, attainable, relevant and time-based. For example, a SMART goal would be: “By July 31, 2021, I will save $1000 to put into my emergency savings account by saving an additional $143 per month.” SMART goals help you set a time frame and an idea of how you will achieve that goal. By being more specific, you will be less likely to be lax or use the money for impulsive purchases.
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Find a partner – Get yourself an accountability partner that you know will hold you accountable. They should not be a “yes man,” they should help you think critically about purchases and help keep you on track.
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Track your progress – You can use tools such as our Money Manager to make goals and track your progress automatically. You can also automate your transfers into your savings account, so you don’t have to think about moving that money every month.
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Focus, focus, focus – When it comes to financial goals, you must think about the long term. It takes a while to save up an emergency fund or a down payment for a house. You need to be patient and persistent. It will be worth it in the long run!
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Reward yourself – Milestones are a great way to keep yourself on track and reward yourself. For example, if your financial goal is to save $2000, you might cut out your trips to the coffee shop each day. Once you hit $500 you might reward yourself with a drink at your favorite coffee shop. As mentioned earlier, financial goals can take a great deal of time to achieve and celebrating your milestones can help keep you motivated.
These steps can provide you with a good starting point for setting your New Year’s resolutions. Our partnership with GreenPath Financial Wellness is also a great place to get advice and resources to get you on your way to a healthy financial future. You can get free, one-on-one advice from GreenPath by calling them at 877-337-3399 or find more information on our website.
Information from SWBC