It’s a time to change behaviors and create resolutions with the hope of bettering themselves in the coming year.
Consistently among the top resolutions are living healthier, spending more time with family and friends, and bettering one’s financial position. However, while you may have the best intentions, keeping resolutions throughout the year can be challenging – especially regarding financial goals.
Accomplishing your goals becomes much easier when you work with your partner. Setting goals as a couple allows you to work as a team toward your targets – holding each other accountable along the way. The following five steps will assist you and your spouse in creating a plan to achieve your New Year’s resolutions together.
As you prepare to create your New Year’s resolutions, it’s important to remember you’re working as a team. That means respecting your partner’s desires – even if they differ from your own.
When setting financial goals, identify each other’s spending and saving habits. Then, find ways to build on the positive characteristics and create a plan to avoid any future temptations.
First, you’ll want to identify what you hope to accomplish in the coming year. When setting financial goals, it helps to break out your aspirations into short, medium, and long-term goals.
Take time and list out all your financial goals. Again, respect each other’s desires. Then, narrow down your list to the objectives you both feel are the most important – especially regarding your short-term resolutions.
Next, focus on turning vague goals, such as “saving for a new car,” into actionable steps. You can do this by using the SMART goal-setting method.
When you finish defining your goal, it helps to put all the SMART method components together into a few short sentences. This tactic makes it easier to remember and stay focused. For example:
“We plan to purchase a new car in January of next year. We’ll accomplish this by saving $3,000 for a down payment over the next 12 months. Each month, our goal is to set aside $250.”
Once your goals are defined, you’ll need to map out how to accomplish them. If you have several fiscal goals, you might want to limit them to no more than three. Otherwise, you might take on more than your budget can handle.
Next, begin by working the goals into your monthly budget. In the example from earlier, your goal was to save $250 each month toward a $3,000 down payment. Does your current budget provide an extra $250 monthly? If not, are there areas you can trim to make up this amount?
If you cannot fit all your financial goals into your budget, you should prioritize which are the most important to both of you. Remember, you’re working as a team to achieve goals you both value.
Once you begin working toward your goals, you’ll want to set aside time to monitor your progress. Depending on your unique goals, these check-ins might be weekly, bi-weekly, or monthly. Schedule them on your calendar to make them more official and to serve as reminders.
Use this time to review your progress and identify any successes or challenges. If you’re not on track as planned, take note of what happened, and create steps to avoid the mishap in the future. But don’t give up. Work as a team to hold each other accountable and encourage one another along the way.
Working toward lofty financial goals can be draining – and involve sacrifices. To maintain your motivation, it helps to create rewards you can earn along the way.
A fun strategy is to break your goal up into four parts. Then, set prizes you can earn upon completing each section. These might include a date night or a small gift for each of you. Just remember, your rewards shouldn’t be too expensive and prevent you from reaching your next benchmark.
Creating resolutions as a couple is a great way to start the new year. You’ll be able to motivate and hold each other accountable as you work together as a team.
If your aspirations include improving your financial position, we’re here to help. Whether you want to reduce debt, save more, or finance a new car or home, our team is available to assist you along the way.
Make an appointment with a financial counselor at https://freedomfirstenterprises.com/roanokefec