It’s a new year and a fresh start! That can mean a new financial year for you!
If your New Year’s resolution this year is to make better money management decisions or even give your finances a financial makeover, you’re in the right place!
I’m going to show you how to plan for your best financial year yet!
We’ll talk about everything from building your game plan to learning from past mistakes!
Reflect On Last Year
When planning to have your best year, it’s important to look back on last year and <gulp> your past mistakes.
Compare last year’s goals to see if they were accomplished or identify places where you might have fallen short.
Your experience from last year’s goals can help you create better goals for this year and help you from making the same mistakes year after year (I’m so sick of doing that!).
If you have a planner or calendar, look at your last year and how you were spending your time. That helps you identify that in the future, you will know how important things were to you and where you fell off track.
If they aren’t very detailed, leave a note to yourself to make your calendar and planner more detailed THIS year so you can keep track of your goals.
As you reflect on last year, be sure to write down your reflections. Keep these in a safe place and refer to them each year when you look back on your goals.
Make A Financial Plan
To have a great financial year, it all starts with a good plan. It doesn’t have to be anything intense, as long as it’s specific.
You can write it down on a notebook at your kitchen table or even on a napkin.
Make your financial plan in these three steps:
- Start by thinking about what your financial goals are. What is important to you? Once you’re able to answer this question, you can figure out how much money you will need to reach this goal.
- The next step is to evaluate your current situation. Start by determining your net worth. This will give you a clear picture of where you stand, and help you figure out where you want to be financial.
- Lastly, you should map out how you are going to reach your financial goal by writing out the exact steps itt will take to get there. Once you have your map, then you can figure out exactly what adjustments might need to happen to your budget.
Here are even more tips for how to pay off your debt faster.
Think of the Bigger Picture
When it comes to managing our finances, we tend to be focused on what’s in front of us instead of seeing the bigger picture.
This leads us to squash our own goals before we’ve even had a chance to get close to achieving them yet.
Instead of saving for a house, we might take that hard-earned $20,000 and buy a new car instead. We might order takeout too frequently instead of putting that money toward a significant savings goal.
As you begin to make your own spending decisions, you should weight the value of every dime, nickel, and even penny you’re about to spend against your financial goal.
And I know it’s hard to weigh those decisions with the long-term mindset; will this Starbucks coffee bring you more joy than retiring early? That sounds crazy, right?
But sometimes the truth hurts.
Keeping your financial plan and goal in mind, start to think of the bigger picture instead of your need for immediate gratification.
Surround Yourself with Positive Influences
If you are working toward financial independence or some other big financial goal,
it can help you to surround yourself with people who are working toward those same goals.
If you spend your time with spenders, it will be hard to resist the urge to spend along with them.
On the flip side, if you spend your time with people who strive to be frugal and pay off their debt, you will feel more motivated to stick with your goal.
In Proverbs 27, the Bible says, “As iron sharpens iron, so one person sharpens another.” Also, it’s truly better to share the burden and encourage each other with day-to-day strategies to help each other work towards your goals (even if they are different).
Stick To It
Having a solid plan in place is how you will reach your big financial goals in life.
If you don’t let yourself get distracted and keep moving forward with your goal, you’ll find the light at the end of the tunnel eventually (I promise!!). Keep your eyes on your prize, and you’ll see that you’ll reach your financial goals in no time at all, maybe even this financial year!
Eight percent of people will fail at keeping their New Year’s resolutions every single year! Commit to follow these steps and make this year your best financial year yet!
YOUR TURN: What financial or personal goal are you making this year? What plan have you started to keep yourself on track? Chime in and let me know!
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