New year, new money goals. That's the saying, right?
Self-improvement goals don't just start and end with your body. It also means getting your finances in order. How to set up and stick to your financial plans this year.
Keep Your Goals Specific and Realistic
Don't worry about the goals you want to achieve. Instead of saying, "I don't want to be in debt anymore," instead of saying, "I want to pay off my credit card debt." Instead of "I want to save money," say "I want to save $ 5,000."
It is also important that your goals are realistic. Don't say that you want to save enough money to buy a house if you are unlikely to buy anything for three years. Turn that into something like, "I want to save $ 5,000 on my deposit."
. 2 Outline Your Success Plan
Financial plans are different for each goal. The way you deal with debt may differ from the way you deal with saving. For example, if you are trying to pay off a large part or the rest of your student loan debt, you should first look at what you owe. Write down your minimum monthly payments, the interest rate and the expected payment date.
Then tinker with your characters. What would this final payment look like if you increased the monthly payments by 25%? What about 50%? Could you afford to double your monthly payments? Find a number you are happy with and add it to your monthly budget. Set up your payments so that they are automatically debited from your bank account. Use bonuses or extra cash to pay off the debt. Whatever you need to do to achieve this goal without sacrificing too much, do your best to meet those expectations.
. 3 Check your budget
is vital to ensure that you can keep your resolutions. Creating a budget is helpful, but keep in mind that it's not always set in stone. Life changes and circumstances arise when you have to adjust your budget. Your new financial solution is one of them.
See how your solution fits your budget. If it's tight or not immediately feasible, see what changes you need to make it work. Can you cancel a monthly subscription or bring lunch to work? Would you like to eat less outside or spend nice hours with friends? It is good to make sacrifices to achieve the goals you want to achieve. Find a middle ground with which you feel comfortable.
. 4 Prioritize It
It is difficult to achieve a goal unless you make it a priority. Check yourself weekly or monthly or whenever you get paid. Your financial determination should be at the fore when making money decisions, just like paying rent and other bills.
Track your progress to ensure that your goals are appropriate. Sometimes we find that we have to change something when we have started and that is allowed.
. 5 Be Flexible for the Unknown
You can set goals for now, but what if something drastic or unforeseen occurs? Perhaps you have lost your job or a loved one and are having trouble making ends meet. Gates are a nice thing, but not always a must . They are based on your current self and your attitude, which can change over time or if something changes.
Remember that you don't have to give up if you get off track. You may just need to adjust your goals, budget, or both. Changes are inevitable. So be open to the opportunity to update your financial plans if necessary.
. 6 Recommend
Sometimes we need a partner when we go to the gym to hold ourselves accountable for training. Our financial intentions are no different. Get involved with a friend or other important person to make sure you are on the right track. It's like a coach for your money goals.
When you try to pay off debts or save on major expenses, your significant other can play an important role in ensuring this. In this case, challenge yourself every week or month to see who can contribute more to your resolutions. The idea of winning – for nothing but a title – could be the impetus that you both need.
It may also help if you write down your progress. Some people share their debt repayment stories through personal blogs that might work for you. Even if no one reads it (first!), It may be enough to specify your goals and plan of attack to keep you up to date.
If you have readers, some may offer guidance and support to help you achieve these goals. Sometimes you can find others who are inspired by your work to make their own financial resolutions.