Best Money Goals for the New Year
A new year means new resolutions. What better way to get started than with your finances? No matter where you’re starting, small goals can make a big difference when you are planning your year. But there’s more to good goal-setting than just a few half-scrawled thoughts in a journal somewhere.
Here are 3 ways to making the best money goals for the New Year:
Bad Goal: Pay down my student loan debt
Good Goal: I will put $100 extra per month towards my student loan debt
The first goal is great in principle, but it doesn’t give you a lot of material to work with as you try to achieve it. Because you don’t have anything mapped out, it’s hard to know what you should be putting towards it and understand how you’re progressing. The devil is, indeed, in the details. Success often means paying attention to those details and being specific.
When you’ve made it a point to break it down, it’s easier to see how you’re improving, and it gives you something specific to measure. Decide on a specific amount to put towards your debt and how often you will be making the payments, and your progress will measurable. More importantly, you know the goal is achievable because you planned out your budget and know that it’s something you can realistically accomplish.
Bad Goal: Make more money
Good Goal: I will rent out the extra room in my apartment for $500 a month
If one of your money goals for the New Year is to make money, the best way of doing that is with a good plan. The more specific the plan, the better off you’ll be. If there are barriers to renting out your room, figure out how you’ll deal with them.
If you use the bedroom for storage and you don’t have extra space, maybe you could arrange with your parents to keep some of your things for a while. Having smaller concrete steps that help you work towards your goal will help you get there faster.
Bad Goal: Put money towards retirement
Good Goal: I will open an RRSP account and contribute $25 per week
Putting money towards retirement is one of the best things you can do for your financial future. Without a starting point, you’ll quit before you even begin. It’s important to figure out your numbers before moving on with a grand plan to build a retirement portfolio.
Build a specific plan for success: make an appointment with an investment professional at your bank and research some of your options and get some questions together. Make sure you have you’ve earmarked that money in your budget.
The best money goals for the New Year are rooted in reality, and they provide you with explicit directions so that you have a road map to success.
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