Financial New Year’s Resolutions
Setting Annual Financial Goals
The beginning of a new year is a great time to reflect on past achievements and set new aspirations. It’s also an opportunity to determine whether you’re on track with your financial goals and revise them as needed. Whether ensuring a comfortable retirement, supporting your child’s education, or saving for a vacation, individuals should establish annual goals in order to prioritize their most important financial objectives.
Setting realistic “SMART” goals at the start of each year, that are Specific, Measurable, Achievable, Relevant, and Timely, will help you stay on track and avoid making financial decisions that do not align with your current and future needs.
Specific
Goals should be specific. Be as clear as possible about what you want to achieve and why. Establishing distinct financial goals will help you visualize the sequence of steps required to meet your objective.
Measurable
Goals should be measurable. For example, instead of “I will increase my retirement savings percentage,” say “I will increase my retirement savings percentage by X% this year.” Putting precise numbers in place will further solidify your objectives and make it easier to recognize once you’ve achieved them.
Achievable
Goals should be achievable. Ensure the goals you create are possible and within your reach. Often this means setting small, short-term goals that lead up to a significant long-term goal. Doing so will help you stay motivated along the way and remain focused on achieving your most important financial objectives.
Relevant
Goals should be relevant. Establish goals that complement your personal values and long-term objectives. You should create goals unique to you and your financial situation, which may differ from your friend’s, family member’s, or colleague’s.
Timely
Goals should be timely. Choose a realistic timeframe for your goal and set a completion deadline. Establishing short-term, mid-term, and long-term goals can help you stay on track in achieving your desired objectives.
Whatever your goals are this year, partnering with a financial advisor can help you prioritize and plan for the future. Contact us to let us know how we can help you achieve your financial goals.
Related Articles:
https://www.mindtools.com/pages/article/smart-goals.htm
https://www.investopedia.com/articles/personal-finance/100516/setting-financial-goals/
