A lot of people at this time of year like to make New Year’s Resolutions. I don’t. I like to set goals. The difference? A New Year’s Resolution is usually a wish, a generic “I would like to…”. Goals on the other hand are specific, measurable, and attainable.
I sit down (usually with my wife) and I map out where we would like to be at the end of the year – whether it is financially or some other area of our life. Then I sit down to determine how to measure that goal, and the steps it will take to achieve it.
For example, our Emergency Fund has taken several big hits recently (windows and a well pump). So one of my goals for next year is to build back up our emergency fund. Now that is still too general – a good goal will state how much I want to put into the emergency fund this year (specific, say $3000), and the steps I will take to achieve that. With money, it is pretty easy to set goals because money is measurable (either I will have put the money into the emergency fund or not).
I believe it is very important to set goals, especially financial ones. Otherwise, you will be tempted to spend your money on whatever comes along rather than having an objective for your money. If you don’t know where you are going, than any road will take you there.I hope we all know where we are going financially.
What are some of your financial goals for this year? Share in the comments where you are headed this year. I will close this post with one of my favorite quotes – “Failing to plan is planning to fail.”
Have a great New Year!
