Are you sick and tired of resolving to be healthier and wealthier each and every year? We are too, that’s why we’ve decided to switch it up by setting financial goals, instead of resolutions, for 2016. In fact, that was the topic of our first episode of the Financial Conversation podcast.
The Difference Between a Goal and a Resolution?
We’re glad you asked! There is actually a difference between goals and resolutions.
A resolution is simply stating a fact with the determination to make it so. A goal is something you strive for because you can see the end result and you know the steps to take to get there.
Instead of creating financial resolutions with no actionable steps to back them up, this year you should try setting financial goals instead.
How to Set Financial Goals
There are many different methods to consider when you are setting financial goals, and this is something we discussed during our podcast. We each take a different approach to setting financial goals, and that’s ok because we are all doing what works best for us.
For instance, Erin doesn’t set specific goals for her finances. Instead, she has a general idea of what she wants to accomplish and she makes mindful financial decisions that will bring her closer to her dreams.
On the other hand, Kristi has seen the most success when she takes the time to write down her financial goals with a plan of action to make them happen. She also suggests that having a visual reminder of your goals is a great way to stay accountable and motivated.
The key to setting financial goals is to know what works best for you. If you find that you aren’t successful with your financial goals, which is something Kayla faced in 2015, then perhaps it’s time to try a new approach.
Financial Goals to Consider Setting
Do you want to join us in achieving financial goals this year? We’re happy to help provide some inspiration! Below are some goals we recommend everyone include:
- Create a debt payoff plan – If you want to pay off debt this year, like Erin and Chonce, then you need to create a plan. You need to know exactly how much you owe, and how much you can afford to put toward your debt.
- Create a savings plan – Similarly, if you want to save up for something, you need to know how much you need to save each month, and how much you can put toward your savings. That’s how Chonce is saving for her wedding! Setting up automatic transfers from a checking to a savings account is your best bet.
- Increase your income – Earning more is empowering, and it can help you achieve your goals faster.
- Diversify your income – It’s always good to have more than one income stream in the event one dries up.
- Check your spending habits – We all have spending weaknesses, you just need to learn how to rein them in. Consider doing a shopping ban to avoid your weak spots and give yourself time to recover.
- Start investing – This is one of Erin’s goals once she pays off her student loans. She wants to learn all there is to know about investing and how to grow her wealth. Contribute more toward your 401(k) or open an IRA if you don’t have access to an employer-sponsored plan.
- Educate yourself – As Benjamin Franklin once said, an education is one of the best investments you can make. Once you learn something, you can keep applying that knowledge over and over again. Pick one topic in personal finance you want to learn more about, and dive in!
Just in case you still don’t believe us when we said talking about money can be fun, here is short little blooper reel from our first episode!
Make sure you subscribe to the Financial Conversation podcast to hear us discuss our financial goals. We’ll be providing updates on them throughout the year and using each other as accountability buddies. We’d love it if you joined us!