Keys to setting financial goals 2021

In order to achieve your financial goals, you first have to set them. There are essential keys to setting financial goals in 2021. It is proven to be an essential part in finding success, and this is something that applies to all aspects of life.

Considering the year that we have had with Covid19, and other events throughout the year.  It’s important to not put our financial goal on hold.

One of the most important keys of financial goal setting is your financial success.

Whether it’s to make an extra $10,000 this year or start investing, nearly everyone sets a money goal every year. 

Every high achiever and success guru do this. Warren Buffett, Tony Robbins, and my friend Brian Tracy will all tell you that goal setting is a huge part of their success.

The Keys to Setting financial Goals 2021

The keys to setting financial goals for 2021 is to make a habit of setting them and revising them.  Setting new goals every year, every month, and every week.

It’s a good idea to look at your goals every day and review to see if your on track.

When it comes to your finances, it is important that you get in the habit of setting annual goals.

Spend time every year, before the new year to determine what you want to focus on in the coming year.

To get your finances on the right path in 2021 here are some tips to setting  financial goals in 2021.

Reference: https://www.ruleoneinvesting.com/blog/personal-development/financial-goals-for-new-year/

Give your money a “job.”

Think about your days at work?

You have things you need to accomplish this week, and things you hope you can finish into the future.

The same is true with financial goals.

What kind of life do you want now? Later?

That’s the job of your money to help you achieve.

One thing to remember is that “financial goals don’t have to be set in stone,”

Winston says. “In fact, you’ll revise them throughout your life.”

Categorize each financial goal as short-, mid- or long-term.

Use this as your guide to help you complete your financial goals worksheet:

• Short-term financial goals: six months to five years
• Mid-term financial goals: five to 10 years
• Long-term financial goals: more than 10 years

Set a target date for each financial goal.

Being specific helps, even if you adjust the date over time.

If you have a toddler who will be heading to college in 2035, you have a target date for your college savings goal.

Want to take a trip across Europe for your 10th wedding anniversary?

You know what timeframe you’re working toward. Add target dates to your financial goals worksheet (PDF).

Prioritize each financial goal: critical, need, or want.

It helps to prioritize, so if push comes to shove, you know what to fund first.

Label each goal on your worksheet: critical, need, or want.

Let’s say you have a short-term goal to build up your emergency fund, and it’s “critical.”

But another short-term financial goal is to trade your car, which is running just fine—that’s a want.

If funds become tight one month, you know where to put your money.

Get started by completing our financial goals worksheet (PDF).

Setting Financial Goals

Basic life and money goals

• Buy a home.
• Remodel or repair your house.
• Pay down debt, such as loans and credit cards.
• Find a new job.
• Buy a car.
• Build an emergency fund.
• Give annually to charity.
• Set a career goal: start a new business, expand a current one.

Family-related goals

• Get married.
• Plan for children.
• Help kids with college expenses.
• Leave the workforce (raise a family, care for parents, go back to school).
• Help adult children with expenses.
• Leave an inheritance for loved ones.

Retirement-related goals

• Increase your 401(k) contributions to their max.
• Retire from working full-time or retire early.
• Move (lower cost of living, climate, closer to family).
• Pay off your mortgage before you retire.

Top financial resolutions

The number one goal for Gen Z and Millennials? Save more.

The number one goal for Baby Boomers? Reduce spending.

Know how much you have vs. what you still need to save.

Do you have money in a Superannuation fund? Term deposit?

If so, log those numbers on your worksheet toward a retirement-related goal.

Note: Some goals may not have current savings. That’s OK. You have to start somewhere.

If you plan to buy a home in two years and you need $15,000 more for a down payment, divide that by 24 months.

Then you know to save $625 more per month toward that goal.

Reference: https://www.principal.com/individuals/build-your-knowledge/5-steps-setting-your-2021-financial-goals

Get Your Credit in Check

First, plan to get your credit in check.

Get a handle on what your credit score is and the factors that are affecting it.

If your credit score ends up being lower than you would like it to be, begin taking steps to improve it.

Such as paying off debt and keeping the balances on your credit cards low.

Get Your Taxes Done Early

Like it or not, tax season is coming up quick.

Each year, far too many people make the mistake of waiting until the last minute to get all of their necessary documents together.

Avoid the stress and hassle that comes with waiting until the last minute. Set a goal to have your tax documents fully prepared as soon as possible.

Stay Organized

Setting budgets and goals are great, but these efforts are futile if you do not have a plan to stay on track.  

Staying organized is a critical step to meeting your financial goals this year.

There are several tools and budgeting apps out there that can help you remain on track. 

When it comes to your personal budget, the more organized you are the better.

Reference: https://www.ruleoneinvesting.com/blog/personal-development/tips-for-setting-financial-goals-in-the-new-year/