I often hear lots of people say that their new year’s resolution is to save more money, start investing, get out of debt or to buy a house. How do you set yourself up to succeed these things? You might want to be ‘better with money’ but what does this really mean?
S - Specific
M - Measurable
A - Achievable
R - Relevant
T - Timely
There’s nothing worse than setting yourself up for failure by setting a goal that you cannot achieve. I am all for aiming high but believe setting yourself up for success with realistic goals is so important.
A goal might be to save for a house deposit. Instead of saying ‘My goal is to start saving for a house deposit in 2020’, make it a SMART goal. For example:
I want to save $50,000 for a deposit to buy a house in five years.
This means I will have to save $10,000 a year which is $192 a week.
Is this a realistic amount for me to save each week? Can I save more or less? What will I need to do to reach this goal each week?
Breaking up big goals into small micro goals is such a good way to stay motivated and track your progress.
Another example might be ‘I want to be better with money’. A SMART goal for this could be- ‘I am going to listen to one personal finance podcast episode each week so I can learn how to be better with money’.
1. Write your goals down! People with written goals are 42% more likely to achieve them than people without written goals.
2. Review your goals every month. Modify or set new goals as needed.
3. Set goals you’re excited about!
4. Is your resolution this year to ‘get better with money?’ Here are some more specific money goals to start with:
- Create a budget and review each month
- Track your spending
- Build an emergency fund
- Save for a specific thing- holiday, car, house deposit
- Never forget a bill again (download the WeMoney app!)
Disclaimer: The author is not a financial advisor and the information provided is general in nature and was prepared for information purposes only. This article should not be considered to constitute financial advice. Accordingly, reliance should not be placed on this article as the basis for making an investment, financial or other decision. This information does not take into account your investment objectives, particular needs or financial situation.