2020 has been a crazy year! Now we are very near 2021, so it is time for some financial goal setting. I want to make the year ahead a great year with you!! Let’s work on living our dream life, managing our money better and succeeding with our financial goals!
You always need some financial goals in life, to close the gap between where you are now and where you want to be financially. It doesn’t matter so much for what time frame you set the goals, the most important thing is to start now!
Review Yor Previous Year Goals
Before you start setting the goals for next year, think about what the previous year has brought you. When I look back, I can very clearly see where I struggled. For me, this was the first three months of the year, where I didn’t have a job yet and just returned from traveling in South America. Also, I can see that the other 9 months were quite successful, so I will try to keep that going at the same phase (and up my game) for the next year.
Think about the goals you had at the beginning of the year, that you’ve met. Also think about the struggles that you’ve had, your successes, what you’ve learned from this year, and more. In this way, you can be more clear about what you need to do.
The first step is to get motivated. You can do this by finding you why. What are your reasons for financial goal setting? Why do you want to reach that specific financial goal? The bigger the why the easier the how! Do you want to be financially free? Or do you want to retire early? Do you want to travel more? Do you want to be able to buy a new car? Your why can be anything! Again, the bigger your why the easier it will be for you to get there.
Physically Write Them Down
Actually writing down your personal (and business) goals is important when you are setting goals. When you are writing them down, they will be more likely to stick around in your brain. Not only write the goals down but also why you want to achieve them. Like we discussed above: the bigger the why, the easier the how!
There are some ways to always keep your goals in mind, like:
- Create a blog which tracks your progress
- Make a vision board
- Put reminders in your calendar or phone
Break Your Goals Down
Personally, I always get overwhelmed when I look at my yearly goals. To prevent this from happening, I always break my main goals down in monthly or quarterly goals. This means that each month you are getting one step closer to your end goal, yeaah!
How do you break your goals down? For example, I wanted to have 10% of my wealth invested by the end of 2018. This meant:
- January: info on investing in stocks
- February: choose a broker
- March: the build-up of my portfolio
- April: how to start investing in stocks
- May: how to start investing in bonds
- June: how to start investing in ETFs
- July: actually transfer money to my account
- August: which stocks, bonds, ETFs should I invest in
- September: actually transfer money to my account (2.5% of total wealth)
- October: 5% of your total wealth invested
- November: 7.5% of your total wealth invested
- December: 10% of your total wealth invested (I just bought the last ETFs to reach this goal, just in time!!)
Financial goal setting alone is not enough. In order to achieve your goals, one great way is to follow up with them. Whether this is weekly, monthly or quarterly, depends on what your goals are and what works for you. It is important that you divide your goals into manageable parts, if they are too hard you will be very likely to give up on them! If during the year you find your goals are not attainable for you at that moment, please tweak your goals!! This is NOT giving up, this is making sure your goals work for you (not against you).
One great way to follow up with your goals regularly, as mentioned above, is to create smaller bite-sized portions of your goal. This may also include forming a habit around your goal. For example, if you want to save more in the next year, you can start by automating as much as possible! If you are transferring a certain percentage of your income automatically to your savings accounts, you will be less overwhelmed because you don’t have to think about it every month again and again! The next step to saving more could, for example, be getting a higher salary.
A great way to keep yourself accountable is through a start, I’ve started my blog and immediately start setting goals every month to keep up with where I want to go. If you want to start a blog, you can read more about my 15-minute tutorial for setting up your blog.
Last but not least, keep going! Remember your why you wrote down in the beginning, your motivation is really big so why give up?
Ways to keep going:
- Vision board and keep it somewhere you will see it daily
- Find an accountability partner who is trying to work towards similar things – even someone you met online who has the same goals as you.
- Get a reward set up when you reach your goal, so you’re looking forward to achieving it. Celebrating is a very important part of goal setting, to keep things excited and keep yourself motivated.
Have you made goals for this year? What are your goals?