New Year, New Goals
08-Jan-2021 • 4 min read
For most of us when a new year rolls around, one of our main goals is to have more money. Whilst it makes sense, it’s just not specific enough and if you have wishy-washy intentions, you’re going to get wishy-washy results.
Setting goals is one of the most effective approaches to evaluate your journey to success, so take some time to reflect and set your intentions for 2021 before going full speed ahead.
Having said, it’s important to remember to first look back on 2020 to review your spending habits. This will show you what has worked, what needs to be changed and will help give you a game plan for the new year.
Here are our tips on setting your financial intentions for 2021…
Look back on 2020
It’s important before setting new financial goals to first recall our spending habits of 2020. What category did I spend most on? How much are my fixed costs? Could I have cut down on any areas? These are just some questions you could reflect on when reviewing your spending habits. Knowing how and where you spend your money will tell you which habits need to be changed. Maybe you’ve spent too much on monthly subscriptions and didn’t even notice - remember to always track and review your spending so that you’re not spending blindly.
Write down your goals
Writing down your goals will help you hold yourself accountable as well giving you the motivation and recollection of your goals when needed. Whilst it’s all well and good knowing what you want to achieve in your head, nothing beats putting pen to paper. In fact, many studies show that those who write down their goals are more likely to achieve them than those who don’t. So, let’s get writing!
It’s important that your financial goals are specific, meaning measurable and time sensitive. Saying ‘I want to save more money’ isn’t as effective as ‘I want to save X amount by 31st December 2021’. This will give you clarity on exactly what it is you want to achieve and will help you be strategic as you’ll know that you’re working towards a ‘deadline’.
Give yourself an action plan
Once you’ve reviewed your spending habits and are clear on your financial intentions, give yourself an action plan. This means thinking of the steps you’ll need to take in order to achieve your goals. Make sure that your plan is sustainable and realistic otherwise you’ll find yourself unmotivated to follow through.
Be true to yourself
When setting your financial goals, it’s important to make sure that these goals are your own. Everyone is on their own journey, so don’t fall into a comparison trap thinking that you need a certain amount by a specific age because society says so or because you see your friends making these big money moves. Remember to set goals and smash them for you!
The bottom line is, knowing what your financial goals are stepping into a new year will allow you to navigate the year with a lot more intention and mindful spending. Remember to always take baby steps and don’t overwhelm yourself! Goal setting should be fun and exciting, not feel like a burden you have to carry around all year.
We know you can do it!