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3 Ways to Set Better Financial Goals

3 Ways to Set Better Financial Goals

January 16, 2024

Making smarter money decisions often tops New Year’s Resolutions, with a little over 70% of Americans creating goals centered around that theme. Sadly, only less than 10% of people are successful in keeping goals.

If you’re among those statistics, this new year can be different! As you think about the financial goals you’d like to accomplish, these strategies can help you set better goals and increase the chance of achieving them.

Be specific. “Save more this year” won’t likely get you a bigger bank account in the coming year,. Instead, be specific: Save 10% of my paycheck into a separate emergency savings account; to make achieving those goals more likely.

Write it down. Clearly and vividly. Get detailed and concrete with your goals by writing them down — in detail — on paper. One study found that people who vividly described or pictured their goals in writing were 1.4 times more likely to accomplish them. That’s because by taking the time to be expressive in writing our goals, we’re encouraging the encoding of those ideas, which stores them in our long-term memory.

Make it measurable. Creating measurable goals makes tracking your progress more straightforward. One way to create measurable goals is to use time as a metric. Establish a timeline for your financial target so you can have a deadline. A solid timeline helps break your goal into manageable chunks over time and know if you’re setting a realistic goal. Here are a couple of examples:

  • Save an extra $1000 in your holiday account by October
  • Pay off credit debt by July

Setting specific time frames helps you determine how far along you are at different stages throughout the year and adjust if necessary.

A New Year brings hope, but not being able to keep goals can disappoint. The trick is to set realistic and timely goals that you can accomplish. Don’t hesitate to call us if you need help identifying your financial goals for the new year and how to achieve them.