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I hope the new year is off to a great start for you and your loved ones.

I know that for many of you, a new year brings hopes and intentions of working on new goals, and often those goals are financial in nature.

But what I see happen so often is that people have good intentions but aren’t very clear with themselves about what the actual goal is.

Wanting to decrease debt is a goal. Or increase savings.

Nothing wrong with that. Except they lack specifics, and that’s a big key to not just setting goals but reaching goals.

Here’s a framework that will help you work toward any money goal.

Define What Would Make You Feel More Secure

What is the one financial goal that would bring you peace of mind? Don’t focus on what others say you should do. The best goal to set is the one that will make you feel more in control. The goal that resonates loudest and strongest in your gut is the best because it comes packing a wallop of motivation.

Set a 10% Initial Goal

Often times we set a high bar for a goal and when we fall behind, we just quit. My suggestion is to aim for 10%. If your goal is to reduce your credit card debt, refine that to a goal of reducing your debt by 10%. If you have a $5,000 balance today, that will mean getting it down to $4,500. Your goal is more emergency savings? Okay, if you saved $200 a month for emergency savings last year, can you bump that up to $220 a month?

You get the idea.

I chose 10% because I have yet to run into anyone who with some determination and grit can’t find 10% to cut from spending so they have more to use for an important goal.

What’s Your Time Frame?

Set a shortish check-in date of no more than three months to see how you are doing. Can you get the credit card balance down to your goal in 2 months? Were you able to manage the extra emergency savings for three straight months?

Add a Review Date to Your Calendar

I am serious here. I want you to add a meeting to your calendar based on whatever timeframe you set for your goal. You must check-in with yourself on that date. I am confident that you will find you reached your goal. I hope that fills your tank with more motivation because we’re just getting started.

Reset Your Goal

How about adding a new 10% to your goal? So if the credit card balance is now down to $4,500, your next goal is to get it to $4,050. If you have managed to up your monthly contribution to emergency savings to $220, push it to $224 or so.

Again, set a deadline to see how you did, and then reset your goal for the next few months.

I hope this approach will give you all the momentum you need to reach your financial goal for 2022.

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    Categories: debt, emergency fund, goals, saving