4 Tips For Financial Goal Setting In 2022
If you haven’t yet, there’s no better time than now to set financial goals for the new year and plan for the future. What are your objectives? Whether they include purchasing a new home, saving for a child’s education, paying down debt, or building a retirement nest egg, it all begins with goal setting. You may have short-term goals, as well as long-term goals. Setting financial goals can help you make your dreams a reality. Keep in mind that your goals should be regularly reviewed and revised. Here are four tips for financial goal setting.
1 List your financial goals and priorities
Setting financial goals begins with developing a list and then prioritizing that list in order of importance. For instance, if you just welcomed a new baby, purchasing a new home for your growing family might be at the top of your priority list. In order to accomplish this goal, you may need to improve your credit score, pay down debt, and also save for a down payment. These items will also be on your list of financial goals. When you list your goals, print them out and keep them where you can reference them. This will help you to stay focused on achieving your goals.
2 Be specific when setting goals
Rather than listing saving money, break it down further. More specific goals might include saving for a vacation home, building an emergency fund, or maximizing your retirement savings.
3 Create a timeline for achieving your goals
You can categorize your goals into short, mid, and long-term and then set a target date for reaching your goals. Let’s take the example in #1 above. Short-term goals might be improving your credit score, paying down debt and also to save for a down payment on a home. A mid-term goal might be to purchase land and build a home. A long-term goal may be to save for your child’s college education. When goal setting, be sure to include a target date to achieve each goal. This will help you stay on track. For example, my goal is to build an emergency fund with three months of living expenses by the end of June.
4 Apply the SMART strategy when you set financial goals
SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. In order to be successful with accomplishing your goals, they need to be specific and measurable, so you can evaluate your progress on a regular basis. You also want to be sure the goals you are setting are relevant to your financial objectives and can be accomplished within a certain timeframe. If your goals are SMART you will have a greater chance of success in achieving them.
Possible financial goals for 2022
If you’re looking for some ideas to get you started, here are some goals to consider:
· Build an emergency fund
· Increase your income
· Live below your means
· Save for a new car
· Save for a down payment on a new home
· Save for your child’s education
· Start saving for retirement or up your retirement contribution
· Saving for a dream vacation
· Eliminating high-interest credit card debt
· Consolidate debt
· Budget to spend less and save more
· Pay off your mortgage
· Pay off student loans
· Start a business
· Improve your credit score
· Increase the value of your home with a home improvement project
Set financial goals and put your money to work for you
Having clear-cut financial goals will change how you view money. It may start with budgeting and reorganizing how you have your money working for you. Money sitting stagnant in a non-interest earning account can’t help much with your goals, while money well invested can. The $100 a month you blow on an unused gym membership might be put to better use helping to grow your retirement account. As we mentioned above, when you set financial goals, you should also prioritize your objectives.
Spirit Financial is here to help our members achieve their financial goals. From our Simple Free Checking, Savings Accounts, and IRAs, to our Smart Equity Mortgage Refi and Personal Loans for debt consolidation, we have all of the products you need to help you achieve your objectives.