New Year, New Financial Goals

 Happy New Year! 

It is now 2021, a new beginning. Did you reach your financial goals last year? Maybe, maybe not. If you did, that's great! If you did not, that is alright too. Successfully reaching last year's goals should give you a feeling of accomplishment and, hopefully, the motivation you need to keep going. If you were unsuccessful, that's no reason to give up. You have to figure out where you went wrong and come up with a plan that really works. Maybe you set the goal too high; maybe you were hit with some unexpected expenses. These things happen, and that is no reason to quit. 

Setting Financial Goals

Every year, I set some type of financial goal. A few years ago, I learned about a savings plan to increase your savings amount by a dollar each week. Week 1 - save $1, week 2 - save $2,  week 3 - save $3, etc. This became my travel fund. I would save all year and use the money saved for vacation and travel. The second time I did it, I decided to increase each week by $2, which led to even more savings by the end of the year. I find it nice to have a fund dedicated to travel, that way, I can plan a trip around what is saved, knowing that it will be paid in full right before or right after travel has taken place. All the fun, none of the worry.

The point is to set a goal that makes sense for you. If you have debt, your goal may be to pay off some/all of that debt. If it's time to replace a vehicle or major appliance, your goal for the year may be to save up to make the downpayment or the purchase. Maybe you're ready to buy a home - that's a huge undertaking and requires a lot of preparation and financial planning. Again, it's an opportunity to set your goals. 

Starting The New Year Right

When it comes to financial goals, you want to be specific. You need a way to hold yourself accountable. If you want to save a certain amount, specify the amount, give yourself a deadline/timeline. It may help to set up an automatic savings plan - most banks allow you to do this.  If you want to pay off some debts, specify which debts, how much you can pay, and how often - make a plan.  

2021 Roth IRA Goals

One of my goals is to contribute to a Roth IRA.  A Roth IRA is a type of retirement account. There are certain contribution limits which depend on various factors. If you are unsure of your contribution limits, visit the IRS website for details.  Logging into my account on the 1st of the year, I could clearly see where I was starting, $0, and where I wanted to be, the IRA max. This is great motivation because seeing that 0% go to 100% is exciting for me. Of course, once you contribute to an IRA, there is still work to be done as far as investing and trading, but getting the account funded comes first. 🙌

New Year, New Beginnings

As we begin a new year, continue to build your financial future. If you did well last year, that's great, but your work is not done. Continue saving, investing, and planning. When you reach one goal, set another. For those who struggled to reach their financial goals last year, try not to be too hard on yourself. Pick up where you left off, or set a new attainable financial goal.

Managing Money Like a Boss means you plan and set goals. A new year is a new opportunity to spend less, save more, and invest intelligently. Set some financial goals and do your part to accomplish those goals. You can do it!