How To Set And Stick To Your New Year’s Financial Goals
The New Year is about to come, and for sure, most Canadians will start crafting their new year’s resolution. Most of this resolution pertains to smart financial moves. However, only an average of 19% of Canadians was able to put their resolutions in place for the entire year. This is because setting a goal might just be easy, yet executing it requires hard work and discipline.
In this article, I’d like to share some of the tips that will help you set your financial goals for the following year and most importantly, useful tips on how you can stick to them.
Set and Plan for SMART Goals
Whether your setting financial goal as a couple or for yourself, it is important that you follow the SMART concept which signifies specific, measurable, attainable, realistic and time-bound goals. SMART goals are carefully set with specific benchmarks and include key performance indicators to determine if you’ve reached the target.
An example of SMART goals would be: start up an emergency fund for $500 and reach $12,000 after three months. This goal is specific to saving for an emergency fund, and measurable since you just have to total your income for the month and multiply it with 3. It is also attainable if you are in control of your finances. Besides, it is realistic if you can afford to save such amount on the time you’ve set.
Justify Your Goals
If your financial resolution for the coming year is too challenging, you must justify your goal and examine why you’ve chosen to set it. It is a must that you know the rationale behind it. For instance, if your intention to save is to open a TFSA or Tax-Free Savings Account, remembering your intention will help you defeat setbacks. It will compel you to strike harder throughout the year since you’re not just saving for a summer vacation but your future finances.
Break Down Your Goals
Setting a New Year’s resolution concerning your finances must be broken down into small-term and medium-term resolution if it’s too broad or big. For instance, if your focus is to pay off your large amount debt before the year ends, you might need to calculate the target amount you need to pay in a month, or in a quarter to be able to pay it off before the year ends. This way, you can keep track of your finances, and be able to decide some frugal approach like slashing your cell phone bill or any others.
Reward Your Efforts
Setting and fulfilling your financial resolutions is quite challenging. It demands self-discipline and persistence. It’s all about your attitude and the way on how you execute your plans and stick to it. Bigger goal is not impossible to reach for as long as it’s realistic and attainable; plus, the right attitude and strategic planning, which leads you to success. Moreover, if you want to stay on track with your financial goals, you must also learn how to reward your efforts. After all, you deserve to celebrate your victory.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.