It is the beginning of the year and a great time to reset and start thinking about the next set of goals you’d like to accomplish.
The last two weeks I have discussed “Setting SMART Goals” and “Writing Down the Vision/Goal” on my YouTube channel.See below for links.
Typically, when the new year rolls around, we think of new resolutions that we intend to keep. I was curious as I had heard a statistic, that most people give up on their resolutions by July.
Here is what I found in an article on insideoutmastery.com:
“How long do New Year’s resolutions last?
43% of all people expect to fail before February, and almost one out of four quit within the first week of setting their New Year’s resolution. Most people quit before the end of January, and only 9% see their resolutions through until succession.
• 9% successfully keep their New Year’s resolutions.
• 23% of people quit by the end of the first week, 64% after the first month (according to a study with Australian and UK citizens), and 81% before the end of the second year.
• Most people quit on the second Friday of the month, according to Strava, a Running and Cycling tracking app. They named this day “Quitters Day”.
• 43% of people expect to give up on their goals by February, which explains the relatively high quitting rate in January.”
Interesting, right?
May I propose something instead of setting resolutions?
Setting SMART Goals and Writing them down.
What are SMART Goals?
S – Specific
M-Measurable
A-Actionable
R-Realistic
T-Timebound
So, let me start with one that is not realistic for me: “I’d like to lose 30lbs in 4 weeks”. While this may almost fit into the SMART goal scheme – it simply isn’t realistic for me, nor is that healthy.
So, how do you set a SMART Financial goal? It’s also important to note, that we need to set it based on things that are within our control. I cannot control what the stock market does, but I can certainly do my part.
Here are some examples:
1) I would like to max out my 401k contributions for 2023.
That means, for an individual under the age of 50, they would need to put away/have deducted out of their paycheck $1,875 per month.
If that goal is not REALISTIC based on your income and expenses, it’s best to set a goal that is manageable for you, so that you can make your own progress.
2) I would like to have invested $x by the time I am 60.
You will need to assess how old you currently are and how much you need to put away on an annual basis to get there. Then, you can break that down even further and determine how much per month you need to put away.
The key is to make the goal small enough that it does not become overwhelming, but meaningful enough to motivate you to keep going.
3) I want to retire in 15 years.
What are the actionable steps you will need to figure out how to get there? What are some factors to consider? Are you on a path now that will allow you to retire in 15 years?
I’m a huge proponent of doing things in small increments that have a longer-term impact and becomes easier to achieve instead of doing it quickly and facing burnout.
For example:
I’ve written my faith blog weekly for six and a half years. (I simply showed up each week with one blog. God and time hasdone the rest)
I’ve created a YouTube video once per week since I started in August of 2022. (One 5 minute video a week.. manageable)
I’ve written a Finance Blog once per month. (I calendar it so I don’t forget to do it, and create a real deadline for myself)
Sometimes, setting your SMART Goals are simple. It’s creating one action on top of another and continue going. Sometimes you need help in getting to that goal. If you need help with setting your financial goals and getting your financial life organized, I would love to help you.