Setting financial goals can be daunting so here are 5 simple steps to get you started in 2020:
1. Evaluate your last year
How did you do last year? Did you hit every goal you had? Are you planning on setting even higher goals this year? Maybe, you didn’t have any financial goals at all. It’s important to know where you have come from to know where you are going. Write down everything that went right and everything that went wrong. Rate yourself and honest about your situation.
2. Figure out what matters to you
Start thinking about what you value and what matters to you. What hobbies contribute to your wellbeing that you just can’t cut back on. How valuable is time to you? How much of your time do you want to give up in exchange for extra cash? Start thinking of the figures that you need to live a basic life and the life you dream of. Make a list and revisit over the course of the week. More will come to you over the course of a week.
3. Make your goals SMART
Now you know where you stand. Your values are clear and you know where you want to be so its time to create your goals and make them SMART.
SMART goals are specific, measurable, achievable, relevant and timely. Make short term goals and long term goals. Weekly attainable goals and end of the decade goals. What financial position do you want to be in by 2030? Ten years from now seems so far away but remember 2010 wasn’t that long ago. Make a list of all your goals and start culling, making sure they’re all SMART.
4. Create your budget
There are lots of budget templates online and in excel but a simple handwritten one might do the trick for you. Find what works for you and drill down to the last cent. There will be some goals you will have to tweak and drop altogether but once you have them set and you feel they are within reach move on to the next step.
5. Write your goals down
Once you have decided on your goals now its time to get them on paper. Put them in a folder, on your phone or on a vision board. Anywhere you can see them and read them on a regular basis. Find what works for you. Read, listen and visualise them. Live and breath your financial goals.
Setting financial goals doesn’t have to be complicated. Reward yourself when you’ve hit a milestone and pivot when needed. Happy goal setting!