Reviewing finances from last year can help you pick out a new financial goal
At the turn of the year, many people attempt to better themselves and their lives by setting New Year’s resolutions. Most resolutions never last through the whole year, and people return to their old habits.
However, when it comes to financial resolutions, resolving to change habits can make a big difference. Whether you want to improve your income, reduce debt or start a savings account, there are ample financial goals you can set for yourself. Here are a few tips to set a goal to get you on the right track:
Narrow objectives
You probably have several financial changes you would like to make, but it is difficult to achieve all of these at once. A new year feels like a fresh start, so take some time to compile a list of financial goals you hope to achieve. Looking at how you spent money over the last year is a good way to figure out what changes you think could benefit your money management better. You can have long- and short-term goals, such as saving to buy a car or a home or simply a new television. Narrow your objectives of what you want to accomplish and decide which are most important to you.
Focus on one goal
While you may have several objectives, picking out one goal will make it more likely that you will succeed at your financial resolution. You can still address other objectives later on, but starting with one will make the change less overwhelming and more manageable. Pick the most important goal and focus on creating a plan to achieve it. If you want to start saving for a down payment on a house or a car, create a plan to set aside money every month. To pay off debts, make it a priority on your monthly expense budget and be sure to pay it off on time. Whatever your goal is, focus on it and make a plan you can stick to every month.
Give it time
The best way to start any financial change is to give it some time. Paying off debt can take months or even years, and saving is a long-term goal that should continue throughout your life. Remember that keeping your financial resolution should be the ultimate goal and that it may not happen overnight. If you make a mistake in your budget, be ready to forgive yourself and try to make up for it in other ways.
The information contained in this article does not constitute financial, legal or tax advice and its authors make no claims about its accuracy or completeness. The authors of this article do not hold themselves out as providing any legal, tax, financial or other advice and do not make any recommendations or endorsements as to any investment, financial plan or any other product or services. The materials contained in this article do not constitute advice and you should not rely on any material in this article to make, or refrain from making, any decision. As laws and regulations change frequently, we cannot guarantee that the information contained in this article is current or applicable to your specific circumstances. Laws and regulations may vary from jurisdiction to jurisdiction. Legal, tax and financial advice must always be tailored to your specific circumstances and nothing in this article should be viewed as a substitute for the advice of competent legal, tax or financial advisors.