We all make New Year’s resolutions and most of us abandon them by the end of January, or sometimes mid-February. Just ask any fitness center employee and they can tell you the new member drop off rate by Valentine’s Day.
2020 provides us a unique opportunity. Since it’s a ‘zero’ year, you can easily track progress on your goals. You can also use the calendar as a daily reminder to set those very short-term, short-term, intermediate, and long-term goals. For example, this year you can tackle those very short-term goals (12 months or less). You can use 2021 as the marker for your short-term goals, and a mid-decade year such as 2025 for your intermediate goals. Ten years out, use 2030 for your long-term goals.
Let’s take a look at goal setting. The first thing to know is that you shouldn’t set too many simultaneous goals. Pick between one and three goals so you are not overwhelmed. It’s easier to reach those goals if you have fewer, specific goals.
However, it is ok to have multiple goals with overlapping periods. For example, you could have two very short-term goals, one intermediate goal, and maybe one long-term goal. These goals would yield calendar dates of 2020, 2025, and 2030. For example, let’s say your two very short-term goals are to organize all financial documents in a single location, and to increase your savings rate. You could set a date for the first goal of March 2020 and the second goal, more immediate, to raise your 401(k) contribution rate by 2% by next pay period. Done! You’ve set two goals and given yourself time to achieve them.
An intermediate goal might be to buy a new car in 2025. You could pick December 2025 since dealerships provide lots of incentives end of year and get started by calendaring what you need to do between now and 2025. Start a monthly savings car fund and set a calendar reminder to check your progress every quarter. For the long-term goal, maybe paying off your mortgage in ten years, work with an adviser to determine exactly how much you need to increase your annual payments to hit that goal.
For any goal, use SMART. Be sure your goal is Specific (save 5% more), Measurable (how much per week, month, or year), Achievable (but challenging), Realistic (does it fit your overall plan), and Timely (have a beginning, and a target end date).
I’m linking you to a 2020 Vision sheet that you can use. It is very simple. You enter your goal, a target date, and SMART description. You can then either print or save the form. I recommend you print it out and post it somewhere you can see it. I also recommend that you use a journal, a digital calendar, or Smartphone task app to keep you on track reaching your goal. Whatever it takes and whatever works for you. Here’s the link: https://form.jotform.com/200125960786154
As an independent Certified Financial Planner™, I can help you plan for the new year and be on top of your goals. Contact me and let’s get started on a savings plan or a hike! #talktometuesday #education #Hireaplanner #stressfree #newyear #savings #goals #2020vision #debtfree #budget