You might be great at setting goals but have trouble seeing them through to the realization stage. Instead of watching as your well-intentioned New Year's resolutions fade into financial oblivion, you can make a concerted effort to stay on track by following the tips outlined below.
Set Specific Financial Goals
The more specific your goals are the greater are your chances of success. It is much easier to save $100 a month towards the purchase of a new computer than it is to simply transfer money into a savings account designed to take care of miscellaneous expenses. Take the time to itemize what you want to achieve and how much those things would cost and then drill the total cost down into a realistic monthly savings target.
Make Sure It's Something You Really Want
This should be fairly obvious and instinctive, but unfortunately it's not. If you have any goals on your list that have been included simply because you think it is the right thing to do you are not likely to work towards achieving them. For instance, if you are not emotionally ready for the responsibility of owning a home, but you have started a fund to save for a house, chances are you'll end up spending your house money on entertainment.
Automate Your Financial Goals
As far as possible, try to automate your goals so you remove the possibility for human error or a lack of will power. If you have set up a standing order to transfer a percentage of your income out of your current account you can rescue yourself from spending more than you should by whisking the money away before you have the chance to get at it.
Focus On Only a Few Things at a Time
Finally, it helps to choose the most pressing financial goals and train your attention on them. You may be tempted to try to address everything at once, but this only increases the possibility that some of them will fall by the wayside. It is much more productive to prioritize your financial goals and work towards achieving only a few at a time. You may be able to handle one or two major projects in a year, while also working on smaller sub-goals. For instance, saving for a new car or a down payment on a house may be your primary objective, while you also continue to work on paying down debt and saving for retirement.
Financial resolutions can be kept, but it takes focus and dedication to get them past the starting gates so you can check them off your list at the end of the year ahead.
Natalia Jones - Natalia Jones is a full time freelance writer. She has an Advanced Diploma in Financial Management (ACCA) and she has previously worked in ...
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