This year is different
It's a brand new year and you may be thinking this is it. This is the year we get out of debt. This is when we finally start planning for our son's college. I'll figure out if I can retire comfortably (and when I can retire).
We'll take charge of our finances rather than feel like our finances control us. It may seem insurmountable, it all feels overwhelming and we will never get there. It's just too complicated and I don't have the time.
How do I achieve my goals?
Setting a generic goal like, "I want to get out of debt this year" is a great place to start but now let's take some concrete steps to get there. New Year's resolutions like this are doomed to failure unless we have a solid plan to get there.
Step 1: Write it down
Write down your top three goals and put it somewhere visible like your bathroom mirror or the front of the refrigerator to have that constant reminder.
Step 2: Set some benchmarks
Let's say you have a goal of paying off your $10,000 auto loan this year. To get there, you would have to pay $833 per month. Write down your benchmark beneath your goal and make a plan of how you are going to get there.
Step 3: Find an accountability partner
A good accountability partner will encourage when you are doing well and also tell you the truth when missing the mark. If you are married, this should be your spouse. This can also be someone in your life like a parent, a good friend, or coworker. The chances of achieving your goals are much higher if you let someone else know about it and they hold you to it (or even provide gentle reminders).
Step 4: Don't forget to reward yourself along the way
It's tough to stay motivated for long-term goals so remember to reward yourself along the way as you hit the smaller milestones (i.e. 50% of the debt paid off). It can something as simple as taking your family out to get ice cream but it helps to give you something to look forward to when things feel tough and you feel like giving up.
Of course the key to achieving most financial goals is setting a solid zero-based budget so you know where your money is going, how much is going out, and having a plan for every dollar you spend before the month begins.
If you need help figuring this out, click on let's chat below.
Thank you and Happy New Year!!
Malcolm
Eyman Financial Coaching
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