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April 14, 2023A New Year is the perfect opportunity to set some easy money goals. Whether you’re just starting out in your financial journey or have had goals before, it’s important to assess where you are and plan ahead. Setting smart financial goals can help you prioritize your spending, save more money, and achieve the future of your dreams. First let’s learn about goals. What is a smart goal setting? What are a short term goals, medium goals and what are long term financial goals?
Smart Goal Setting
Before setting any goal, it’s important to understand what makes a good financial goal. “SMART” stands for Specific, Measurable, Attainable, Relevant, and Time-Bound. These five criteria will ensure that your goal is achievable and has clear boundaries so that you can track progress towards it. For example, let’s say you want to save money this year. An attainable goal but not very specific. Instead of this vague idea, try setting a goal such as “I want to save $500 by June 2021. By setting money goals and making your goal specific and time-bound, it becomes easier to measure your progress and make sure that you stay on track towards achieving it.
Short Term Financial Goals & Medium Financial Goals
Short term financial goals are those that can be achieved within one year (or less). Some money goal examples are short-term financial goals which include: paying off debt; building an emergency fund; or saving up for a major purchase like a car or house. Medium-term financial goals typically take between 1 – 5 years to achieve. Medium-term financial goals might include saving up for retirement; investing in stocks; or building a comfortable cushion of savings so that unexpected expenses don’t derail your budget plans.
Long Term Financial Goals
Long term financial goals usually take longer than 5 years to accomplish and are used as tools for planning far into the future. Examples of long-term 5 year financial goals include buying a vacation home; sending children off to college fully funded; or planning for retirement living expenses. It’s important when setting long-term financial goals that they remain realistic so that they don’t become overwhelming over time due to changing life circumstances or economic conditions.
Now that we have discussed SMART goal setting strategies along with examples of short, medium and long-term finance related money goals, including retirement related ones let’s move on to my list of easy goals to start with.
New Year Goals
What are some good Money Goals?
Here are some Smart Financial Goals Examples
Pay Down Debt
One of the most common money goals examples for the new year is paying down debt. Start by making a list of all of your debts and interest rates. This will help you see exactly how much debt you have and prioritize which debts to pay off first. It may also give you a better understanding of when it makes sense to use a balance transfer or consolidate your loans.
Debt calculators are a great way to get organized when you need to pay off debt. They allow you to input all of your debts including credit cards, student loans, car loans and mortgages and then provide detailed information about how much each loan will cost in interest over time and how long it will take you to pay it off. You can also experiment with different payment scenarios and see how they affect the total repayment amount and length of time needed for repayment. This can help you decide which strategy is best for lowering the cost of your debts and paying them off in a timely manner.
Save Money
Saving money is another great goal to take on in the new year. Start by setting a specific target such as saving 10% of your income each month or putting away $50 every week and make sure you stick to it. Put your savings into an account with a high-interest rate like Alliant Credit Union so that your money can grow faster over time.
If you’d like to save up for a big purchase or just build an emergency fund, savings calculators can help track your progress over time. By inputting the amount you want to save each month along with the rate of return (interest rate) on your savings account, a calculator will tell you exactly how much money you need to put away every month and when you’ll hit your goal date (e.g., one year from now). This is especially helpful if you want to begin saving but don’t know where or how much money to start putting aside each month.
Build an Emergency Fund
Emergencies happen, and life is unpredictable so it’s important to be prepared for them financially. Aim to build up an emergency fund that can cover at least three months of living expenses in case anything unexpected comes up. A good rule of thumb is to look at how much you spend each month, multiply that number by three, and then start saving towards that amount. If you are on a very tight budget then set an even smaller goal. Saving $500.00 to $1,000.00 emergency fund will definitely help you get by in an emergency.
Create Income Streams
Creating multiple sources of income in order to make money goals can help give you more financial security in the long run. Consider exploring passive income opportunities such as investing in stocks or real estate, starting a side hustle or creating digital products such as eBooks or online courses that can generate ongoing revenue for years to come. If you’re looking for ideas or some side hustles then you can check out my articles on How to get paid to walk dogs and how to make money typing and more.
Set Short-Term Savings Goals
Short-term savings goals are smaller targets than long-term ones such as retirement funds or college tuition payments but they can still be just as rewarding! Set yourself a goal like going on vacation next summer, buying something special for yourself or even just having extra cash on hand in case something unexpected comes up during the year ahead!
If you’re a small business owner you can even help your employees set savings goals. A couple of financial goals examples for employees are: Encourage an employee to set up direct deposit or to have their 401k deducted directly from their paycheck.
Retirement Goals
Retirement planning should also be part of anyone’s overall financial goal setting strategy as this helps ensure that once you reach retirement age, there will be enough saved up for day-to-day living expenses plus any additional desired luxuries such as travel or entertainment activities during retirement years.
Retirement planning usually involves both short and long term strategies such as contributing regularly into tax advantaged accounts like 401ks or IRAs; researching ways to reduce taxes such as contributing pre-tax dollars into health savings accounts (HSAs); considering alternative investments vehicles like real estate investments trusts (REITs); and keeping track of Social Security benefits eligibility requirements. Achieving these retirement related finance goals will help ease the transition into retired life while still allowing room for enjoyment during later years without having worry about running out of money too soon!
Lifestyle Goals
Let’s not forget the best goals to save for. Saving for vacations, going out to eat at your favorite restaurants or signing your kids up for their favorite sports can also be included in your goal setting. If you can afford it enter it into your budget sheet! You can also open up an additional savings account at your bank or open one at Alliant Credit Union which pays higher interest rates. These are called sinking funds, although to me it sounds like the ship is going down and I really done like that name, but you definitely can name your savings account as “my vacation” fund or whatever you like.
Create Helpful Habits
Habits are one of the best ways to stay on track with any goal, especially those related to money management! Make sure you set aside time each day for activities like budgeting, tracking spending, prioritize your financial goals and researching investments so that these habits become second nature over time. It also helps if you reward yourself after reaching milestones along the way!
Here is a money goals app that may help you with tracking your money. I like the Everydollar app its free.
Other helpful apps are:
Ibotta app to earn cash back on grocery shopping.
Swagbucks app is a cash back and rewards app.
Rakuten app rewards shoppers with cash back on purchases.
Mint Budgeting APP is a tracker and planner all in one money management.
Personal Capital APP is an all in one finance tool where you can also simulate and plan your retirement.
Final thoughts
With these 8 easy money goals to get you ready for 2023, anyone can reach their financial goals this upcoming year! Start by evaluating your current situation and envisioning what kind of future success looks like for you; then break down those big dreams into small actionable steps and create helpful habits along the way. With patience and dedication, achieving these financial goals will put anyone well on their way towards economic stability! There is no doubt that personal wealth growth awaits!
