Have you already set your financial goals for 2021? Keep these specific, measurable, and realistic.
The start of 2021 is merely around the corner and, before the year ends, it is very important to take a look at what was done well and what remains to be improved in the new year.
For many this is a time to set goals, both family, professional, social and, of course, financial ; Which is a good habit, since it has been shown that setting goals is essential to achieve success, since in this way you can visualize, measure and work towards the achievement of those objectives.
Thus, in addition to establishing goals such as losing weight or taking a specific trip, it is also recommended to set financial goals.
Like any other New Year’s resolution, financial goals are short, medium, or long-term goals that you plan to achieve to improve your finances , whether you want to save more, create an emergency fund, or get out of debt. Defining these goals can help you stay focused on achieving them , motivate you, and help you measure your results.
How do you set goals 2021?
Setting financial goals goes beyond just making a simple list of things you want to accomplish. Being able to meet your New Year’s resolutions directly depends on how well you planned your goals and how you measured them throughout the year .
Thus, to make a smart and achievable year-end plan, financial goals must be very specific, measurable, realistic, and time-bound.
Being smart about your goals refers to going into detail. Instead of saying that you want to get out of debt, you must make a plan to pay 5 million dollar of student debt within 8 months.
Thus, when setting your goals, keep in mind that they must have 4 characteristics:
- They should be specific: What do you want to achieve? If you want to save more, specify how much in the year, if you want to invest, set a goal; If you want to get out of debt, specify which ones you will pay off in 2021.
- They must be measurable: If your goals are specific, you will have the ability to measure your results from time to time. For example, if you want to save 6 million pesos in the year, you would have to save 500 thousand pesos a month.
- They should have a time limit: Setting a time limit allows you to have a finish line. Once the goal is specific, take it and make an action plan. If you want to start investing, for example, you can set a savings goal of 5 million pesos in 8 months and start investing in the ninth month, in this way you can monitor and fulfill the purposes.
- They must be achievable: the goals have to be realistic, otherwise you will never achieve them. If you want to start saving more, you must first review your budget and see how much you can save month after month, in order to set your savings goal.
How to achieve your financial goals?
Once you’ve set your goals, it’s time to work towards them. Here are some tips to achieve it:
- Write: Studies show that goals that are written are much more likely to be achieved than those that are not. Take the time to write down your goals and even create a vision board for them. Keep them in a place where you can see them, so that your mind constantly reminds you to work for them.
- Divide – Sometimes goals can seem overwhelming and unattainable because they are so big. Divide stocks into smaller daily, weekly or monthly ones that are less overwhelming.
- Track Your Progress – Some goals take longer than others, so it’s important to watch your progress to stay motivated.
Financial Goals Examples
Not sure what financial goals you can set for the year? Here are some examples and list of financial goals you can take.
1. Make a budget and follow it fully month by month.
2. Create an emergency fund.
3. Start saving for retirement.
4. Start investing.
5. Save for specific goals like travel, buying a house, a car, or studying.
6. Get other sources of income.
7. Start a business.
8. Increase your wealth.
9. Save for the education of your children.
10. Improve your credit history.
11. Avoid unnecessary expenses.
12. Reduce your ant expenses.
12. Read personal finance books.
I hope this article will help you to set your financial goals for this new year!
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