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How to Stay on Track with Your Financial Goals

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    Name
    David Botha

How to Stay on Track with Your Financial Goals

It’s fantastic to have financial goals – whether it's saving for a down payment on a house, paying off debt, investing for retirement, or simply building an emergency fund. But let’s be honest, many of us start with enthusiasm, only to find ourselves losing momentum and falling behind. The key to actually achieving your goals is a robust system for staying on track.

January 27th, 2020, marks a great time to refocus and get back on course. Let's look at some strategies to help you succeed.

1. Define Your Goals Clearly:

  • Be Specific: Instead of "I want to save money," aim for "I want to save $5,000 for a vacation to Hawaii within the next two years." The more specific you are, the easier it will be to measure your progress.
  • Make them SMART: Use the SMART acronym:
    • Specific: (as above)
    • Measurable: How will you track your success? (e.g., amount saved, debt paid off)
    • Achievable: Are your goals realistic for your income and circumstances?
    • Relevant: Do they align with your overall values and priorities?
    • Time-Bound: Set deadlines to create a sense of urgency.

2. Create a Realistic Budget:

  • Track Your Spending: For at least a month, meticulously track every penny you spend. There are many apps available (Mint, YNAB, PocketGuard) that can automate this process.
  • Categorize Your Expenses: Understand where your money is going – needs vs. wants.
  • Allocate Funds: Based on your tracking, create a budget that allocates funds to each category, prioritizing your financial goals. Don’t just wish you were saving more; actively decide how much you’ll allocate.

3. Automate Your Savings:

  • Set Up Automatic Transfers: The easiest way to consistently save is to have a fixed amount automatically transferred from your checking account to your savings account each month. Even small amounts add up over time.
  • Employer-Sponsored Retirement Plans: Take advantage of any employer-sponsored retirement plans (401(k), etc.) – especially if they offer matching contributions. This is essentially free money!

4. Track Your Progress Regularly:

  • Monthly Reviews: Schedule a dedicated time (even 30 minutes) each month to review your budget, savings progress, and overall financial health.
  • Celebrate Small Wins: Acknowledge and celebrate your achievements, no matter how small. This will help you stay motivated.

5. Stay Flexible and Adapt:

  • Life Happens: Unexpected expenses will inevitably arise. Don’t get discouraged. Re-evaluate your budget and savings plan as needed.
  • Revisit Your Goals: Periodically (quarterly or annually) review your goals to ensure they still align with your priorities.

Resources to Help You:

Do you have any specific financial goals you're struggling to achieve? Let’s support each other!