The start of the new year is a great time to set new intentions. It is time to look forward to a fresh calendar, a fresh start or a reset of a timeline. Financial health goals, just like physical health goals, are great to measure and if necessary, adjust at yearly, quarterly and monthly increments. Maybe you didn’t get everything accomplished this past year that you set out to do. Maybe unexpected things happened and derailed your plans. All is okay. Use this time of year to reset your intentions and your goals.
Ask yourself these questions:
What did I achieve this past period that I am proud of financially? Celebrate these no matter how major or minor they may be.
What held me back from meeting any of the goals I set last year/quarter/month? How can I remove those barriers in the next year/quarter/month?
What are my current financial priorities? Pay off debt? Increase savings? A little of both?
Where am I feeling most secure? Where am I feeling least secure?
Here are some ideas of financial health goals that you can easily track and measure:
How many months in a row can I go paying every bill on time or early?
How many points can I improve my credit score over X months?
How many months in a row can I increase my savings account
How many months in a row can I go decreasing my credit card balances or other loan balances (e.g. car, student or home loans)
Meet with an estate attorney to put a will together or update my current will.
Review beneficiaries of bank accounts, insurance policies, and retirement accounts. Update them if necessary.
What is a big, hairy, audacious goal (BHAG) you have related to your money? Do you want to buy a house? Payoff your car? Go on a dream vacation without going into debt? Set it and track your progress towards getting to that goal.
With any goal being able to measure your progress is important, but just as important is checking in with your goals at regular intervals to make sure the goal still matters to you. Changing your goals over time is totally normal as priorities, circumstances and life evolves, so stay flexible, be realistic and celebrate the milestones that you are most passionate about in your financial health.
