We are almost through the first month of 2020, and I’m betting you’ve put your money aside while you recovered from the holidays and settled into the new year. But it’s time to start thinking money, so let’s talk about how to set financial goals for 2020.
Setting Financial Goals
Setting financial goals is incredibly important.
Without financial goals, you don’t really know where you’re going, how much money you’ll need and where that money is coming from. You’re essentially driving into the future with no money roadmap.
So, let’s make that roadmap. Let’s set some great financial goals so that you can:
- Achieve your goals
- Reduce your debt
- Up your savings game
And, most importantly, work towards financial freedom.
How to Set Financial Goals for 2020
Figure Out What’s Behind Your Financial Decisions
If you read anything by Simon Sinek, you know that knowing your “why” is imperative to success in life and business. And money is no exception.
You can have all the grand financial plans you want to, but if they have no substance behind them—if there’s no “why” then you’ll be unlike to achieve them.
Plan For Your Future
When you set financial goals for 2020, you need to think about your future. Not your right now but what happens down the line. For those goals to meet your needs you need to figure out where you’re going and how much money you’ll need.
So, where do you see yourself in one year? How about 2? 5? 10? There’s no wrong answer, but you do need to know what it’s going to be.
Set Some Goals
If you know where you’re headed and how much you’re going to cost, you need to set some goals that are related to how you’re going to make your future happen.
Make sure that your goals are meaningful to you, the need to be related to your “why.” They also need to be goals that you can actually achieve (aim high but not too high) and you need to be able to measure them to know if they’re working or not.
Face Your Debt
Debt reduction should be one of your top goals, mostly because when it comes down to achieving financial goals your debit is one of the biggest things that stands in your way. You need to aim to reduce debt so that you can pursue other goals.
Get to Know Your Credit
Your credit score matters, and you don’t have to be afraid of it. If you want to set financial goals for 2020 and be successful, one of those should be getting in touch with your credit and working to improve it.
Create a Budget
Finally, when it comes time to set financial goals for 2020, you want to put it all together in a fancy little budget. Budgets don’t have to be complex and you don’t need them to be robust enough to pass a board inspection. Go for simple, achievable and do what works for you!
Looking for More Goal Planning Articles?
- My Financial Goals For 2020 That You Should Steal
- Financial Goals You Need To Set Today
- The Power Of Setting Smart Goals For Money Management