Making your financial goals a reality for 2021 the first thing we need to work out is what will motivate and inspire us to do better this year.

Think about being specific, specific enough that you can visualise what you’re aiming for. Let’s not just be vague and make wishes we know that we won’t be able to reach.

Example:  “Having more money or making a million dollars or winning the lottery”

Where do you want to live this year?

Which of your debts do you want to tackle first?

What does your ideal lifestyle look like?

Which specific aspect of your finances do you want to understand and manage better?

Whether your answers to these questions are humble or huge, be clear about them.

Remember we need to feel the emotion to go with our goals to make it a reality. A feeling that we know we can expand and reach our goals.

Here are some tips to help evaluate and make our goals specific and measurable in making your financial goals a reality this year.

5 Steps to Setting Financial Goals

1. Write Your goals down.

Something special happens when you put a pen to paper and write down your goals.

You’re more likely to actually achieve them, too. It is very important to put them somewhere where you can see them on a regular basis.

Break them down into smaller bite sizes and put them in places you visit daily.

Example: Back of toilet and bathroom door, in your car, on the fridge, on your desk. You get the message here, even in your lunchbox and wallet.

Buy a pack of system cards and decorate them and write on them, make them special for you.

I would advise looking at them at least once a week to evaluate if you are on track.

Keeping your goals where you can see them will keep you focused.

2. Make Your goals specific.

This is where we have to be realistic, first of all, find out where you stand with your finances and expenses.

Do you want to know what your true financial worth is so you can work out better specific financial goals?

Here is a calculator on the Money Smart Website it’s free to work out your worth?

https://moneysmart.gov.au/managing-debt/net-worth-calculator

So we can be better at being specific with our financial goals so we can make them a reality by the end of the year.

Example: “I want to be better with money.” That’s too vague.

                Instead: “I’m going to pay off my credit card of $3000 and save         $5000 for a holiday.

3. Make your Goals Measurable.

If you want to pay $10,000 toward your debt in the next year, that means you have to pay $835 a month to reach that goal (or about $195 a week).

Breaking your goals into bite-sized chunks will keep you motivated when you cross each small goal off your list.

Another good way to set measurable goals is it make sure you est very small ones to see that your financial goals are a reality. 

Knowing that you are going to achieve them may make you not write them down, but we all need encouragement and wins.

4. Give your goals a deadline.

Will you ever reallyreach your goals if they aren’t time-sensitive?

Author Benny Lewis said, “There are seven days in a week, and ‘someday’ is not one of them.

” Don’t be afraid to give yourself a finish line and adjust it later if needed.

Having a deadline gives us something to measure and ties in with our measurable goals so set the smallest ones first and work back on how much you need to pay off each week.

Another great incentive is to put the goal and debt on a whiteboard and each time there is a payment cross it off and write up the new amount.

You can easily see it dwindling down and keeps you on track.

5. Make sure your goals are your own.

It’s easy to look around at what other people are doing and feel like you should be doing it too.

When we start comparing ourselves to other people, we’re playing a game we’ll never win.

So, when you’re setting financial goals, make sure it’s the best choice for you.

 In other words, just because all your friends are taking out second mortgages for renovating their kitchens and bathrooms doesn’t mean you should.

Put the blinders on, focus on your own journey and plans, and cross your own finish line.

Reference:

https://www.daveramsey.com/blog/setting-financial-goals

Let’s look at some ideas on managing our emotions on making our financial goals a Reality.

 3 steps That can help manage those emotions:

1.Start a money journal: renowned psychologist Gail Matthews found that you are 42% more likely to achieve your goals if you write them down. In fact, people who write down goals earn 10 times more over a 20-year period than people who o not.

2.Create a plan: write out individual steps you will take to achieve your goals and cross them off as you achieve them. These small victories release chemicals in your brain that provide motivation.

3.Ask loved ones to hold you accountable: Dr. Matthews found that people who ask friends or family to keep them on track have a 76% higher success rate.

When you create the psychological and emotional environment you need for financial success, the numbers will soon follow.

Reference:

3 Steps That Will Make Your Financial Goals A Reality