2022 is here and some of us may not have been as productive as we thought we would be. No worries, there is still time to look forward to this year and set the bar higher or think out things you have to work on.
Setting goals is exciting in the beginning, but so much can change in just a few months. It’s important to take a step back and evaluate what worked, what didn’t, and how you can make improvements for the future.
Here are 4 ways to evaluate your annual goals and prepare to start the new year fresh and eager to take action.
1. Determine How Well You Stayed on Track
Things happen (good and bad) throughout the year that might deter your progress on your financial goals. Despite the obstacles, it is still important to get back on track the best you can and remember why you set those goals in the first place.
It may not always be easy to pinpoint exactly where you dropped the ball. It’s actually easier to determine why. For example, let’s say you tried to set a budget but failed miserably each month. What contributed to you not being able to stick to a budget?
If you have friends or family who can help you stay accountable, that will help. You can ask your spouse to be honest with you about why you fell off track with a particular goal. Also, try to focus on the positive. Did you get back on task? Did you slightly change your goal to make it more realistic? Any changes you made can be viewed as major lessons and stepping stones.
2. Get Clear on Your Priorities
Don’t overdo it. Too many goals can be a problem since it makes it harder for you to realistically do everything. You’ll be all over the place and risk not getting any goals achieved because you gave yourself so many. There are tons of financial goals that you can make for yourself.
Be smart and make them achievable. Prioritize which ones are more important to you. Have you had trouble the last few years trying to achieve a goal? You may have too many things on your plate.
Instead of trying to pay off debt and save money at the same time, choose one to focus on first.
The year my husband and I planned to buy a house, we didn’t save much. We added a little to our emergency fund but the bulk of our savings went toward buying our home and doing repairs. We were fine with that because we prioritized that goal over others and were able to reach it as a result.
3. Audit Your Habits
In order to meet your goals, you need to have the right habits. Reaching goals takes work. The ‘work’ you do all lies in your habits because habits will get you results in the long run.
Without motivation and habits, your financial goals will be hard to achieve. That said, I never would have saved enough money to put down on our home if I hadn’t developed a healthy savings habit. I had to develop another habit, tracking my spending, to do this as well.
I got into the habit of paying myself first so I could save consistently and hit my major goal for the year.
4. Protect Yourself and Prepare For the Unexpected
How are you protecting yourself and your loved ones while you work toward specific financial goals? We all know that life happens and when you’re not prepared and can throw you off track.
As you evaluate your progress focus on taking some small and easy steps to protect yourself with insurance or updating your policy and beneficiaries if you already have something in place.
Shop around for the best rates and make sure you’re covered in various areas including auto insurance, life insurance, homeowner’s insurance, and medical coverage. This will help you remain protected and prepared for whatever the new year may bring.
Summary
Use this year as a fresh start to go after those goals as hard as you can. Give yourself a mini reward for each goal that you get done. That way you will have something to look forward to. Focus on these 4 tips to evaluate your annual goals along the way.
Have you taken the time to evaluate your annual goals for your finances yet?
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