Published by: Harrison Wolfe, Associate Advisor
As we ring in the New Year, and the beginning of a new decade, hopefully you have had time to reflect on the past and set goals for the upcoming year. It is the time of year when we all look to make changes in our life, whether it be exercise more, spend more time with family, or reach a financial goal. A lot of us say we want to accomplish new things in the new year, but after a few weeks those goals are tossed out the window. Only 46% of people who make a New Year’s resolution are successful.
If you want to reach your financial goals in 2020, you can start by following these 4 steps:
- Create A Plan. If you do not have a written-out plan, your chances of reaching your goal are slim. If your goal is saving more money, what are you saving the money for? Is it for retirement? Vacation? A new house? Each dollar you save should be tied to a goal. You should write down the goal and the amount needed to reach the goal to keep you on track. Just saying you want to save more money is not a plan and you will have a hard time reaching your goal.
If you goal is to get out of debt, you should create a plan for that too. Create a budget, reduce current spending, and set up a payment plan to pay off the debt. Having a plan will allow you track how you are doing and give you peace of mind.
- Hire A Coach. Having someone to help you develop a plan, keep you accountable, and coach you through the steps will greatly increase the chances of you reaching your goals. Hiring a professional will give you clarity by documenting your plan and be the catalyst to help you stay on track. Research has shown if you share your goals with others you more likely to stay motivated because someone is there to hold you accountable. If you are not confident in creating your own plan, consult with a CERTIFIED FINANCIAL PLANNER™ professional. Most will offer a free consultation and you can decide if they are a good fit.
- Once you have documented your goals and created a plan, put your plan on automation. Your plan will tell you how much you need to save or allocate to debt payments. Allow those transfers to happen automatically so you are not tempted to spend those dollars. You are more likely to reach your financial goals if you set up automatic transfers.
- Review your Plan. In order to see how you are doing throughout the year, review your plan periodically to ensure you are on track. It is important to know how you are doing and where you stand. Things change throughout the year, maybe you are able to increase your savings or make extra payments toward the debt you want to pay off. If you are sticking to your plan, you should be excited to review and see what you have accomplished. Remember, it all starts with creating a plan.
You can achieve your financial goals this coming year and beyond, but you have to set them first. If you dedicate yourself to planning now, you will very likely be in a better financial position a year from now. If you’d like to learn more about our planning process, please visit https://www.oxfordfp.com/oxford-360/the-partnering-process/
We wish you all the success in 2020!