5 Ways to Reset Your Money Goals

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It’s nearly the end of January, which means it’s time for a check-in.

How are you doing with your goals for 2021?
Are you taking healthy steps?
Are the actions you’re taking today paving the way to a better tomorrow?

We want to see you succeed this year, so we have put together five simple ways you can reset your goals: 

  1. Start with the end in mind. 

What do you want to accomplish this year, next year, five years from now? How will changing your habits today make that possible? Do you want to pay off your mortgage? Buy a new car with cash? Save for retirement? If you have a focused list of goals, it will be easier to plan and take the steps you’ll need to in order to reach them.

2. Evaluate your spending habits.

Get your bank statements out and take a long, hard look at where you’re spending money. For example, if you get a $4 cup of coffee every single morning (365 mornings), you’re spending $1,460 a year. If it costs $1 to make coffee at home, you could save that $1,095 for something else. Perhaps that $4 coffee is really important to you, but is it more important than your long-term goals?

3. Make a zero-based budget.

This may sound daunting, but it is actually very simple to make this type of budget. At the beginning of the month, you plan your spending so that your total income minus your total expenses equals zero. You give every dollar a job in your budget. This will help you set priorities for your money.

4. Beef up your emergency fund.

Building a $1,000 emergency fund will act as a buffer between you and life. If you’re completely out of debt, set a goal to build that emergency fund up to have enough money in savings to cover 3 to 6 months of expenses. That way, if an emergency comes along, you can pay cash instead of turning to debt.

5. Track your progress

Building wealth takes time. It’s a long-term game. Because of that, it is vitally important to track your progress along the way so that you can visualize and celebrate the small wins. Celebrating the small wins help you stay fired up for the long haul.

We want to see you find success this year. Ask us how we can help you achieve your goals! 

A Happy 2021 Starts Today

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When you wake up on January 1, will you be excited to say goodbye to 2020? Are you looking forward to the promises that next year holds?

If you are among those who are eagerly anticipating the New Year, it’s important to know that there are some simple steps you can take during this final quarter of 2020 that can have a huge impact on your finances for next year. 

Rather than waiting for the calendar to change and hoping that changes your situation, here are some steps you can easily take to build a foundation for a better future.

  1. Live on a monthly budget. It’s easy to make excuses for not keeping a budget. However, a budget is one of the most important foundational steps to financial success. It doesn’t have to be complicated either.

    Give each dollar a job as it enters your bank account so that it only leaves your bank account when you need it to do exactly (and only) that job. Become the boss over your income. Having a plan allows you to see what the dollars in the bank need to do and will help you have a clear picture of your true priorities. There are many apps out there that make budgeting accessible and simple such as EveryDollar , Mint, or YNAB. 
  1. Stay out of debt.  As you track the money you are depositing and give that money work to do, make it a priority to use only your own money to pay for your lifestyle. If there are things you desire that would require you to use debt, consider reordering your current life situation to fit your income.

    The debt of today steals from the joy of tomorrow. Your income, whatever the amount, is able to build a foundation of wealth for you if it isn’t going into the pockets of creditors. Be wise about your priorities and stay away from the pull of clever marketing tactics. Be patient and stick to your plan.
  1. Save. Once your budget has allowed you to see what your priorities are and has helped you escape from building debt, allow that budget to help you build wealth by saving as much money as possible.

    If your money isn’t paying interest to creditors, you will be able to set aside money to cover emergencies as they arise rather than using credit cards. If you begin saving now, you will be in a place to more easily take all the unexpected things (both good and bad) that life will throw at you.

No matter what step you are on in this process, we are here to help you develop a plan you can actually follow through 2021 and beyond. 

Have questions about budgets, debt, and saving? Schedule a session today!