New Year, New You

The start of a new year is a great time to make some new goals!

So, before Jan 2022, have a think about what you want to achieve in the next year. It doesn’t necessarily have to be about money, but I think it’s a good idea to have at least a couple of money goals. What are some small goals that you can start to implement now, that will help you overall in life? Where do you want to be at the end of next year? Have a think about it and write it down.

I believe where people most go wrong with New Years resolutions is that they aim way too high and try to drastically try to change their lifestyle from January 1st. Sure, you may be able to stick with it for one week, but soon you will get frustrated or miss one day and throw it all away. The important part about setting these new years resolutions is to make sure they are achievable, relatable and realistic for you. If you are $20,000 in debt, saying you are going to save $1000 a week and have that paid off in half a year is probably not achievable and will have you feeling worse than when you started. Instead, aiming to pay that debt off by the end of the year if you have a good salary may be a more achievable goal!

When thinking about goals, it is helpful to have a time frame in which you want to achieve them. I’d encourage you to think of a weekly, monthly, half yearly and end of year goal that you want to achieve. It doesn’t need to be anything drastic, but should be a small change that you can implement or start to work towards on January 1.

Here are mine:

Time FrameThings to do:Goals:
Weekly– Continue to follow my budget
– Continue to transfer $200/week into investment account
– Any overtime money- one half goes to investments
– Start to build my emergency fund back up
– Be mindful of my spending- especially with takeaway food and coffee
Monthly– Calculate net worth
– Complete minimum one overtime shift a month
– Increase my net worth each month
June 30– Revaluate goals
– Revaluate budget
– Another 10k invested
– Have 12months worth of expenses in my emergency fund
December 31st– Reflect on the year
– Create new goals
– Another 10k invested (20k total for the year)
My budget and cash flow sit pretty good now so I only need to really go over it every 6 months, this may be different for you if you are just starting out so maybe you need to do it every month. I also don’t have any major financial goals at the moment like buying a home, so my main focus is just continuing to consistently increase my net worth and also increase my cash reserves for when I finally can travel overseas.

My goals are pretty boring for this year, which isn’t always a bad thing! They are very simple in that I just want to continue to increase my investments and also build up my emergency fund. The goal of 20k invested by the end of next year takes into account my regular payments of $200/week and also assumes I will contribute extra from overtime completed throughout the year. The goal of twelve months of living expenses saved in my emergency fund is there for when I decide I want to do a big holiday or do an extended trip. That way I can go without working for a bit if needed and still have money to fall back on.

If you feel you need motivation to hit money milestones, goals are a great way to do that. Finding something that you care about is a great way to build up the motivation to achieve that goal. It may be a holiday, a home or a car, whatever it is that gets you excited or keen, use it to get you kicking goals! For even more motivation, maybe have your goals stuck up somewhere you will see them everyday, like a walk in robe or bathroom! Even just a picture of a dream home or car, or the Eiffel tower might keep you on track. Seeing your goals every day may have you feeling more motivated to achieve them. Another great idea is to get an accountability partner! This may be an actual partner or spouse, friend or family member. Share your goals and help each other to keep you both on track.

Now is as good a time as any, get your notes app out or go old school and grab a pen and paper, and write down some goals for 2022!

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