Importance of goal setting in New Year’s Resolutions
New Years resolutions are much more likely to be achieved when you break the resolutions down into specific achievable goals. This is particularly so when new years resolutions are financial in nature.
A new year’s resolution that is vague like “I want to reduce my debt level this year” is doomed to fail unless it is broken down into specific measurable goals like – “I want to reduce my credit card debt by $5000 by paying an extra $100 a week off the debt.” Or “I want to pay off my personal loan by paying double payments”
You will notice that the goals are specific and measurable.
To improve the chances of making your new years resolution a reality, ensure that your goals have several key elements. All goals you set should be
- Specific -detailing who, what, when, where and why of what you want to achieve.
- Measurable – detail in numbers what you want to achieve
- Achievable – There is no harm in having big ambitious goals but you want to be able to break them down into milestones along the way. There’s o sense insetting a huge goal that appears unachievable – break it sown into bite size chunks that can be achieved.
- Time limited. Be specific about when you want to achieve the goal by.
It makes sense to write down your goals – so that you have a record of your commitment.
Once armed with these specific detailed goals you can look forward to actually achieving your new year’s resolutions.
If you need assistance with turning your new year’s financial resolutions into achievable goals, contact Australian Finance Hub today to arrange a financial planning consultation.