People usually set goals when they want to accomplish something, whether they’re made for the New Year or anytime. They typically resolve to take up a healthier lifestyle, learn a new skill, or improve their relationships.
Improving finances is one of the common goals people aim to accomplish. A sound financial plan increases savings, provides peace of mind, and helps one live comfortably.
You might be planning to increase your savings or set up a business. However, you might be struggling to meet your goal. Before you get overwhelmed or give up on your goal, here are tips that can help.
Be Specific with Your Financial Goals
Having clear and specific goals helps you focus your efforts and improves your motivation to accomplish the goal. For example, not enough to say you plan to set up an emergency fund—you need to determine how much you need to save.
Other goals need some research. For example, if you’re planning to buy a restaurant franchise, identify the necessary costs for one.
Make Sure Your Goal Is Realistic
Your goal should stretch your abilities but should still be achievable given your current resources. For example, a financial goal of hitting $5,000 in savings would be challenging if you earn less than $500 from one job.
It’s best to lower your amount based on your monthly income and other expenses. To calculate the most realistic savings goal, use the 50-30-20 rule in which 20% of your income goes into savings. By incorporating a portion of your income into savings, you’ll get a realistic look at how much you can save by the end of a period.
Add a Performance Indicators to Your Goal
Indicate how to track your progress and stay motivated. hBy measuring your goals, you can be more focused and meet your deadlines. It also makes you feel excited about accomplishing a goal.
If your goal is to save up for something, your performance indicator is the total amount you need to save. If you’re aiming to pay off all your credit card debt, indicate a deadline.
Work Toward a Goal That’s Challenging but Possible
One of the reasons people struggle with their goals is because they’re overwhelmed or struggle to accomplish it. Productivity experts recommend breaking down your goals into smaller, manageable objectives.
For example, if you aim to stick to a monthly budget, monitor your daily progress. Divide your monthly budget into 30 days. With the daily budget, it’s more manageable to track your spending and see if you’ve gone over budget.
Keeping goals to yourself makes it easy for you to give up in accomplishing them. Share your goals with someone who can keep you accountable, like a friend or a family member. Set days when they’ll check up on you and ask how you’re doing so far.
Online tools can also help you be accountable and stay on track. Choose the tools that meet your needs and give you updates on your progress.
Whether you’re starting a new goal or struggling with the current one, know that accomplishing it is possible. With these tips, you can improve your finances and learn how to plan, maintain, and achieve your financial goals.