The New Year is a great time to set some good financial goals. But be sure to set small realistic goals that will help you work towards your larger more long-term goals.
You may want to start with a large goal such as buying a house or retiring early and then look at the things you will need to do to reach that larger goal. Regardless of your aims, it is wise to set up a support system to make it easier to reach your financial goals. It is also important to measure your progress periodically throughout the year.
Consider these financial goals to take on in the New Year.
Start to Budget
Budgeting is the most important thing you can do to be financially successful. There are a lot of people who make a lot of money, but are struggling financially because they do not manage their money well.
Setting up a budget for the first time may be intimidating, but you shouldn’t let that stop you. If you have a hard time sticking to a budget you may consider using the envelope system. This will help you to stop spending once you have reached the limit each month.
Goals for Your Budget
Set up a monthly budget and stick to it all year long
Reduce your spending in specific categories each month
Budget with your spouse or other family members.
Get Out of Debt
Getting out of debt is another key step to taking control of your finances. By really focusing on getting out of debt you can reduce the amount you pay in interest, and you can make the money you’d otherwise put toward debt payments somewhere else, or to work toward a larger goal. You should start by setting up a debt payment plan, then make a commitment to stick to your payment plan all year long.
It is also an incredible feeling to be debt-free. You have more freedom to do the things that you want to do. You achieve greater job flexibility and more peace of mind. While it may take some sacrifice to make it happen, it is worth the effort.
Goals to Get Out of Debt
Set up a debt payment plan
Sell items to pay off debt
Reduce spending to pay off debt
Consider a temporary second job to pay off debt where possible
Start Saving Money
Saving money is another important key to financial success. If possible try to save at least 10% of your income each month. This money will add up quickly. You should consider saving this amount in addition to your retirement contributions if you can afford it.
Remember, sacrificing a few meals from fast food restaurants a month can pay off in the long run. By establishing a savings habit now, you are opening the doors for what you can do during your retirement years. If you are struggling to find ways to save, you can start by cutting back on some of your expenses. Saving can be more effective if you have something you are saving for, as well.
Goals to Help You Save
Stop or limit the frequency you eat out
Reduce your grocery bill
Find ways to save on utilities
Set a monthly savings goal
Start with small short-term financial goals and work to larger ones
For further information and some great tools and articles on managing your finances including a budgeting calculator, please visit www.carefirst-lifestyle.co.uk and ask your organisation for your username and password to log-in.
You can view the Webinar on ‘Budgeting for the year ahead’ by using the following link – https://attendee.gotowebinar.com/register/4508259769039920398
If you feel you may need some support, you can contact Care first. Care first is a leading provider of confidential, professional counselling, information and advice services. All employees are eligible to use Care first, our services include; telephone counselling, information services and online support.
Call Care first on the Freephone number provided by your organisation and you can speak to a professional in confidence.