As the new year approaches, it brings the opportunity for fresh starts. Are you prepared to make a powerful New Year’s resolution?
Eliminating debt, adopting new spending habits, or building savings are choices that can have a transformative impact on your life. They can influence your overall well-being, from reducing stress levels to improving physical and mental health. The new year is a perfect time to commit to improving your financial health.
1. Create a Road Map: Establish a Goal (and Write It Down)
Goal setting provides you with direction. By determining your desired outcome and developing a plan to achieve it, you take a significant step towards success.
- Goal setting is correlated with higher achievement and self-confidence.
- When you write down your goal, you increase your chance of success by 42%.
2. Clearly Define Your Desires and Motivations
Clarifying your priorities and setting specific goals are crucial for success. Chris Dlugozima, a former FinanceMaster financial counselor and now one of our learning experience designers, recommends setting aside time for self-reflection. Ask yourself three questions: What do you want to achieve? When do you plan to achieve it? Why does it matter to you?
He advises being highly specific when setting financial goals.
- Specify the exact amount you want to save, pay off, or earn.
- Set a deadline for yourself.
- Write down your reasoning and connect your goal to your personal life.