Setting Financial Goals for New Years
Posted January 1, 2023
Posted January 1, 2023
The ball drops, the clock strikes midnight on January 1, 2023, and we say, “today’s the day I start my new year’s resolution.” These resolutions are almost always set with good intentions, hoping to become a better version of oneself and make this new year the best one yet.
Unfortunately, these resolutions don’t usually make it out of January. According to the New York Post, a “poll of 2,000 Americans found that it takes just 32 days for the average person to finally break their resolution(s) — but 68% report giving up their resolutions even sooner than that.”
But this is not always the case, and it doesn’t have to be the case for you. If you are setting a new years resolution that has to do with your financial future, we want to help you achieve your goal.
Perhaps you’re making it a new year’s resolution to put more into your retirement account, create a business exit plan, update your estate plan, or even conduct a business valuation. Whatever it is, we are here for you.
One way you can work to achieve your goal is by making it a S.M.A.R.T. goal. S.M.A.R.T is specific, measurable, applicable, relevant, and time specific.
Sure, it’s easy to create a generic resolution like “I want to save more money this year.” But this isn’t the S.M.A.R.T. way to do it. Instead, make your goal specific by determining what you expect and how you will accomplish this. Use action verbs and make them as detailed as possible.
Again, it’s tempting to use generic terms when setting goals and not specify quantities. However, if you are to stick with your goals and achieve them, it’s essential to make them measurable. To do this, determine how you will know if your goal was completed. For example, instead of saying you want to contribute more to your 401K account, say that you want to contribute X amount more each month or quarter. You can see whether you have achieved your goal at the end of those periods.
To make your goal applicable, it’s important to evaluate how important this goal is to you and what you will need to do to achieve it. Will you need to set up more appointments with your financial advisor? Do you need to reevaluate your budget? What actionable steps do you need to take now so that you can achieve your goal in the long term?
Be honest with yourself as you are setting your goals. Are you helping your children pay for college? Are you caring for your aging parents? Are there health concerns that could impact your finances? Considering these external factors is an integral part of setting a realistic goal. Making your goal realistic is also important to avoid discouragement and giving up on your goal.
Do you work better under pressure? Are deadlines useful for you? If there is no timetable, there’s no urgency; then we don’t need to measure our progress, check in with ourselves, or seek help before it’s too late. Making your financial goals time specific will help you to stay on track and achieve your goals by the end of the year.
You could set many goals this January to help achieve a better financial future, and we are here to help you make them S.M.A.R.T. goals. Whether you have questions about your portfolio or would like to talk your goals over with a financial advisor who has your best interest in mind, schedule your appointment with the Thayer Financial team today.
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