In light of the unpredictable events of 2020, forecasting the future feels like a leap of faith. However, I firmly believe in the power of setting financial targets. Here are my suggestions for how you should approach your financial agenda for 2021.
It’s no secret that life doesn’t always go according to plan, causing your ambitions to evolve over time. You might question the point of setting goals under such uncertainties. But regardless of the end results, I’m an ardent advocate for goal-setting. Despite only a fifth of goal setters achieving their ambitions, I’m convinced the success rates are even lower for those who shed away from establishing goals altogether.
As money forms the core of most of my ambitions, they frequently transmute into financial objectives. Despite the shroud of uncertainty over the future, here are my tips on how to approach your 2021 fiscal goals.
Remember: LESS IS MORE. When it comes to financial goals, focusing on too many objectives can obstruct your progress in all of them. Even when you have multiple monetary goals, try to concentrate on a couple of them at most: save $1,000, clear a debt, fill up your retirement fund. This approach prevents you from being distracted and reduces the pressure of multitasking.
If you happen to accomplish your goal before the year ends, consider moving on to the next one, or simply take some time to appreciate your achievement. Even if you haven’t quite reached your goal by the end of the year, take the time to acknowledge your progress. Remember, patience is key: reaching a financial goal might take longer than you think and that’s perfectly fine. Just stay realistic and don’t burden yourself with unfeasible standards.
Reserve GRACE for yourself. In addition to defining your 2021 financial goals, I advocate setting a goal of being kind to yourself when needed. Be prepared for obstacles and setbacks along your journey. There are times when you might exceed your budget or stray from your financial pathway – all that is part of the journey and doesn’t necessitate impossible standards.
When you’re working towards important monetary targets, self-compassion is equally significant. Allow yourself to go over the budget sometimes or enjoy the occasional splurge without feeling guilt shadowing your joy.
Before structuring your 2021 financial targets, construct a strong financial base. Whether it’s saving $10,000 or reducing expenditure, integral budgeting and efficient money management skills are crucial. Don’t procrastinate on developing these habits until the new year.
Finally, view the coming year as just one part of your comprehensive financial journey. Try balancing the act of living the present while investing in a secure financial future. Inculcate broader financial goals in your long-term plans and remember that the coming year is just a stepping-stone towards your overall ambition. When times are favorable, maximize your savings, increase retirement contributions and find investing avenues. Conversely, during challenging times, tighten your budget and tap into your emergency fund.
So, what are your financial aspirations for 2021? And how do you plan to exhibit grace to yourself when faced with unexpected hurdles?
