Take a moment and think about your resolutions and goals from last year. How did you do? The start of the new year can be a great time to review your financial progress and make adjustments if necessary.
If you’ve fallen off track, don’t be too hard on yourself. Many of us know that setting resolutions isn’t the hard part – it’s seeing them through. Ahead, we’ll go over a few tips that could help set you up for success in the months ahead.
Before laying out your goals for the new year, get a clear picture of where you stand financially. For instance, you may want to:
Doing a financial review can help you get a better sense of your progress and guide your resolutions. When setting goals, it’s important to be specific and realistic. For example, many of us would like to “save more,” but it helps to be specific about how much more you want to save each month and what you’re saving for.
It’s also important to be realistic about what you can achieve within your timeline. If you have a big financial goal in mind (like saving for a home), make a plan by breaking that goal down into smaller, manageable steps. This way you can work toward your goal systematically with checkpoints along the way to help you track your progress and stay motivated to get across the finish line.
Remember: Goals can be harder to achieve when they’re vague or don’t reflect what you truly care about. Too often, financial resolutions, though well-intended, fizzle out when people become too busy with their daily lives or feel overwhelmed by what they’ve set out for themselves. To help you stay confident and committed, when setting a goal, consider:
Many people feel discouraged when they hit a setback in their goals. But don’t give up! Setbacks are normal, and sometimes, all it takes is a course correction or adjustment to help you get back on track.
For instance, if you find yourself having a hard time keeping up with your savings goal, consider automating your finances. It can be a great way to build your savings without having to remember to put money away each month – which means one less thing to think about. Many traditional and online banks offer an automatic deposits or transfers feature, allowing you to schedule recurring transfers between accounts – like from your checking account to your savings account (or a retirement account).
Technology can also be helpful when it comes to money management. Say you want to be more mindful about your spending this year. There are many budgeting apps you can use to track your spending and help you better visualize your money habits.
Different apps come with different levels of customization, so explore your options and see if there’s one with features that appeal to you. Look for an app that’s easy to use and makes sense for your needs.
Most financial goals are rarely achieved overnight. Things like building an emergency fund, paying off debt, or saving for a down payment take time, discipline, and flexibility. We mentioned earlier that it can be helpful to break down these larger goals into smaller steps. When you’ve reached a milestone, celebrate the small win! Small wins over time mean you’re one step closer to your goal. And being able to see your progress will help you stay motivated to keep going.
This article is for informational purposes only and is not a substitute for individualized professional advice. Articles on this website were commissioned and approved by Marcus by Goldman Sachs®, but may not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates, subsidiaries or divisions. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice.
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