5 Steps to Achieving Your Financial Resolutions for 2016
We all have financial dreams but the challenge is to turn those dreams into viable goals. Here are five steps that you can take to achieve those financial resolutions in the coming year.
- Create a plan that is flexible yet detailed. This plan should answer the following questions:
- How are you going to go from where you are now to where your end goal is?
- In what amount of time would you like to reach your goal?
- What do you need to do each month in order to reach your goal?
- Make sure that your plan is one that is viable. Think hard about what you can realistically do. Can you realistically come up with x amount of dollars to save on a monthly basis in order to reach your goals? If the short term of your goal is unattainable then so is the end goal.
- Set milestones that are small. Make a chain of short term goals that will allow you to reach the long term goal. For example, if your goal is to save $3600 this year, you can make 12 monthly goals to save $300 each month. Short term goals are easier to meet and they give you a sense of accomplishment that can give you the motivation that you need to continue on your path to your end goal.
- Get it automated. Once you have broken your goal down into those small, attainable milestones, the entire plan can then be automated. Go to your bank and set up a savings account that can be automatically funded when your paycheck is direct deposited.
- Make sure that it is out of reach. Don’t be tempted to dip into your savings once you have begun to save it. There should be no way that you can access it because those impulsive decisions will only undermine your goal. Try setting up a Christmas club account or taking out a CD or savings bond instead of simply having it where you can access it at any time.
Following these steps will allow you to easily reach your financial resolutions for 2016.