There is this ecstasy when the Christmas month ends. While stepping-in into the new year, people generally decide to come up with some brand new ideas that will assist them in their personal and financial growth. While many definitely fail in the former, some even don’t have any idea about the latter, so, financial resolutions are utterly a flop.
Unlike the good intentions behind setting the new year’s resolutions, it is very difficult to achieve them, and it is discipline and behavior that decides the fate of the result. Anyhow, it is gladdening to see people having (following/not following them is secondary) the financial goals for the new year. After all, it is putting them into action that matters a lot.
Now, when the topic of financial resolutions knocks in, the first and foremost way that comes to our mind is ‘increasing savings’. Following that, you will enhance your investments planning for the bigger returns, perceive the business plans in a different and more advanced way. If you’re blessed enough, you will end up purchasing some fancy new villa. Despite the last option, many fail in fulfilling their new year goals. They more often remain as the pipe dreams.
So, here at loan shop, we have enlisted a series of points that will help you have some serious view on your financial resolutions.
1. Find your Motivation
Everything starts here. All you need is ‘strong will’ and for that, there must be something to motivate you towards your goal. Now, start finding your motivation. Before proceeding with anything, ask yourself, ‘what do I want to achieve?’ and ‘why do I want to achieve it?’. By understanding what motivates you, you’ll get transparency in setting up the goals.
If you have identified everything which you must do, then you’ll ace the procedure. Now, with a completely assured purpose, you can have way better strategies and plans to tackle everything like a boss.
2. Pen down the Essential Dos
Now that you’re sure of purpose and necessity to fulfill the resolutions, you have to start implementing them. Just like it is said that ‘drop-drop make a sea’, you should accumulate all your handy ways of saving money which when considered together makes up a big amount. And, when you start writing down, there in that flow, you will end up generating more ideas and goals that will make it worthwhile and give productive results.
A list of goals that can be set:
a. Trim your holiday ideas. come up with a budget-friendly trip (like, stay in a 3-star hotel, if you stay in a 5-star one every time).
b. Commit yourself to wipe off all the debts. Remove any financial restriction you may have at the moment.
c. Set up everything that would make you purchase a new home.
3. Categorize the Goals
Putting down all your goals at once may give you some bizarre confusion, so it is important to review your goals and try to consolidate your list down to small, medium and large goals.
Using time and value as the basic aspects, consolidate and connect the goals so that the size of your list will be reduced.
For instance, let us imagine that you found two goals like
1) Accelerating the debt reduction
2) Becoming debt free
Both of them look similar, but, the latter one has strong intentions than the former.
4. Stay Realistic about your Goals:
Don’t dream of climbing a ladder towards the sky. Always stay real and practical. Keep it smart and in any way, they must be measurable and achievable. If your goals are way too out-of-limits, you will end up not achieving them, instead, not achieving them will leave you depressed.
And this feeling will make you feel scared of setting up future goals. Now, you must know what are smart goals in order to list your own and start working on them. So, start with having three kinds of goals- small, medium and large.
Small Goal – I want to direct $125 per week or $500 per month to my annual holiday savings budget of $5,000.
Medium Goal – Save $6,000 every 12 months focussing towards saving for the Europe holiday in four years.
Large Goal: I want to go to Europe in four years and spend $24,000 on a holiday trip.
Just like it is said above, always set up short goals, and when you fulfill such short goals, you will get enough motivation to stick yourself, dedicate to the large goals. So, celebrate every fulfillment, size doesn’t matter.
5. Become Budget-friendly
Stop rolling hundreds of dollars on the useless things, start spending your money carefully. Drop your Gym membership, workout and habituate yourself to Yoga and other fine fitness practices. After all, saving money is the best way to earn money.
6. Prioritize the Goals
Planning on buying a fancy car without owning a house is certainly a stupid thing. So, always prioritize things. Firstly, clear the debts, then proceed with the other goal. Now, there might be a moment when you have to give up one or other goal, and you will be confused at that moment if you’re not sure about what is your primary goal.
Remember you may need to forego current satisfaction for future gain. Always, have preferences, they won’t allow you to lose your track on goals.