Say hello to 2021! Most of us will start mulling over the New Year resolutions for diverse devotions and objectives in life. For instance, I want to become a better person, I want to do that…and I want to achieve this…and so on. Hmm, I wonder if only we can list out everything and achieve them all. It’s okay if we have a lot of goals in mind for the time being, at least this is a good sign that we actually do have goals for this year 2021.
While thinking about our goals for 2021, however, don’t forget about setting up our financial goals too. Is it crucial? Yes, it is. Why setting up our financial goals is vital? The main reason is that we will never know what’s ahead or the prospects that lay ahead of us. Let’s say imagine, we want to go somewhere nice for a vacation. We do need to select a destination and have a proper plan to make sure that this vacation is going to be a meaningful one for ourselves or our family. This same goes to setting up our financial goals. It can be our map or guideline to lead us a better financial future, on what to do with our finances and how to manage them properly. Don’t feel worry or stress if you don’t have any financial goals yet. Thus, if you don’t have any ideas on how to do it, here are a few easy ways on how we can set up our own financial goals so that we can accomplish a variety of financial priorities from near-term goals to goals with a longer time horizon effectively.
1. Figure out the financial aspects that matter most in your life
First of all, we need to figure out things that matter most for setting up our financial goals. These goals should reflect our financial priorities. In other words, we need to think about the aspects that are important to us financially. These are some of the questions to help us trigger and steer our definite financial goals for each year:
Have I completely paid off my debts?
Was my emergency fund sufficient all this while?
How about the financial goals that I listed out last year? Were those goals attainable?
Did I create a budget?
Normally, our stage of life we are in typically determines what type of financial goals that we want to achieve in this world. Whether we are young or old, still studying/working or even retiring, all these phases or stages of life require us to do, plan and achieve something. Just be ourselves. What we all need to do is to think of any financial goals that suit our own current situations, lifestyle and needs. After all, we all have our own struggles we are going through and encounter different challenges in life.
2. Jot down or list out your financial goals specifically
One of the crucial steps when setting up financial goals is to write down or list out the goals precisely. Yeah, we need to list them specifically, one by one. Why is that so? This is because only by listing or writing our financial goals, we will be able to see clearly how long will it be or what is the approximate time frame for us to attain those goals. On the other hand, this strategy can also guide us to find the possible ways to achieving them. It can be said that there is a magic to writing down or listing out what we want to accomplish. The list of financial goals will become even more significant when we see them perceptibly.
3. Come up with realistic and measurable financial goals
In addition, we also need to ensure our financial goals shouldn’t be absurd or irrational. For instance, don’t stretch our budget excessively just because we want to achieve more or others are doing it. Remember, we do still have other financial priorities that we should concern carefully such as daily expenses, personal/family necessities and others. Despite of making sure that our financial goals must be realistic, we also need to clearly state each financial goal. Most importantly, the amount of money we want to attain or pay off based on our priorities. Therefore, the key words here are realistic and measureable. By applying this strategy, we should be able to measure our financial goals and gauge our progress throughout the year smoothly. Otherwise, we will never know whether we have reached our financial goal or not, since there is no amount stated or attached to it.
4. Plan and prioritize your financial goals
The next step is to plan and prioritize our financial goals. Although we may be filled our daily tasks with many things at hand, but then again financial goal setting needs to be hyper-focused. We have to identify, prioritize and categorize each goal into three different categories; short-term, mid-term and log-term financial goals. We can start with the most important goals and create a timeline for that particular goals. By accomplishing one goal or a few goals at a time, we will feel confident to attain the next one even faster. Prioritization is the key here in order to succeed for every financial goal that we wish to achieve. If we didn’t do this, our financial goals will seem to be very difficult to reach since we are not working toward anything specific and we are likely to spend more time than we should for each goal.
5. Find ways to motivate yourself
There are myriad ways that can help us to keep motivated to attain our financial goals. For the current methods, thanks to the technology! It offers us many goals ticklers that can provide a pleasant financial road map and even financial goals checklist with a lovely visual stimulus. In fact, some of us may put suitable financial quotes on the wall to inspire or give themselves positive thoughts whenever they look at them. Meanwhile, perhaps others may just have a simple list of their financial goals either via the note-taking apps or using the notebook to jot down the goals. Whatever the methods that we are choosing, as long as we know we are on the right track, that’s okay then. We will surely know it is worthwhile of doing anything good that can bring positive impacts to ourselves. Having said that, we also need to develop positive vibes around us. Let’s have a positive mind and attitude everyone. This is another essential way to motivate ourselves rather than wondering negatively or feeling hopeless thinking when we are going to attain those goals. We just have to believe that only with a positive mind and attitude will attract and lead to positive outcomes.
6. Start learning and enhancing your financial knowledge
We may need to continuously seek out information and elevate our financial knowledge to ensure that we are able to manage our finances appropriately. Life is a continuous learning process. We do make money mistakes every year without realizing it. We probably feel uneasy to attend for classes now due to Covid-19 pandemic but, don’t get in a flap everyone. Let’s take care of ourselves and follow the Standard Operating Procedures (SOPs) outlined by the government. Together we can fight against Covid-19. With the innovation of today’s technology, we can still learn anywhere and anytime according to our preferences conveniently. Today, there are lots of financial courses available that we can enroll online to help us learn and develop our financial knowledge. Nevertheless, if we are still feel clueless on what to do with our financial goals, we can always look for guidance from those who are maven in financial management or a trustworthy person in which we can talk through our financial goals with, to give us guidance and encouragement along the way. Never stop learning everyone, because life never stops teaching.
7. Monitor your financial goals
This is an important step once we have already set up our financial goals and have started taking the actions. It is pivotal to keep track of our progress toward our financial goals to ensure that we are on the right track to meet them. Although we may have listed out those goals properly in the first place but if we don’t monitor them well, everything will go haywire. By hook or by crook, we need to monitor the progress of our financial goals. This strategy will definitely give us time to re-evaluate what went wrong with our financial goals and allow us to make any adjustments needed effectively. We confront different hurdles at times in everyday life and our financial goals can be affected as well. Therefore, perhaps we may need to adjust some of them in order to get back on track.
In the nutshell, setting up our financial goals can assist us to organize our finances efficiently, learn how to live comfortably within our means and at the same time helps us to reduce our money predicaments every year. It’s worth it everyone, and besides, it is better if we can set up them early at the beginning of the year so that we will never go astray in our journey towards financial success. Let’s do this everyone!