First of all, happy New Year!
Like most everyone else, you’ve probably come up with some New Year’s resolutions, some of which may include some financial goals. Maybe you want to pay down some credit card debt, save up for a house, or just be “better with money.” Whatever financial goals for 2010 are, I want to help make sure you see them through.
In order to make sure you follow through on your goals for all of 2010 and not just for the first few months, you need to do two separate things, which, if done right, will dramatically increase the chance you’ll complete your resolution.
- Determine the what, why, and how of your goal/resolution
- Write down the what, why, and how of your goal/resolution and carry it with you
Both of these steps are pretty straight forward, and leave you little room for excuses!
WHAT: state what you want to achieve, trying to be as specific as possible. For example, don’t just say, “I want to pay down some credit card debt.” Instead say, “I want to pay down $1,000 of my credit card debt by June.” The more specific and absolute you can are, the easier it is going to track your progress and hold yourself accountable.
WHY: state what you stand to gain from accomplishing the goal, again, being as specific as possible. Using the above example, you could say something like, “in order to achieve more financial stability and to improve my credit score.” When you review your goals from time to time, seeing the “why” will reinforce the goal and help to keep you moving forward.
HOW: this is where you outline your battle plan, being (you guessed it) as specific as possible. In taking the credit card debt example, you might say, “by going out to eat only once per week and not buying any new electronics until I’ve met my goal,” as opposed to saying something like, “by spending less.”
Now that you have your fully formed goal(s), go ahead and, on a small piece of paper, write down all of the pieces of your goal(s). When you’re done, stick the piece of paper some place you look at frequently in order to keep the goals fresh in your mind. Because these are financial goals, I find it useful to stick the piece of paper in my wallet.
I wish you a very happy and healthy 2010, and hope that by following this advice you achieve all of your goals – both financial and non-financial – throughout the year.
Want to share your resolutions? Have a better way to plan out and track your goals? Leave your comments below!
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