Friday, February 2, 2018

Staying on Track with Goals

We're a month into the new year, and many resolutions, although made with the best intentions, have already fallen by the wayside. But instead of giving up, why not try to figure out what's not working and recommit? You still have eleven months to get something accomplished this year.

Maybe the goal is not specific enough. "Save more for retirement" is vague. How much are you saving now? Whatever it is, vow to increase your contribution by a realistic percentage. Go online today or call your employer's human resource department and adjust your payroll deductions. If you don't have a workplace retirement plan, set up or increase automatic contributions from your bank account to an IRA.

Maybe the goal is not measurable. "Manage my money better" doesn't have any criteria attached. What does managing your money better look like? How can you tell when you've reached your goal?

Maybe the goal is not really achievable. "Become debt-free" might be a pipe dream if you're mired in credit card bills or skating on the brink of bankruptcy. Sort of like, "look good in a bikini this summer" or "run a marathon" when you're 100 pounds overweight and have never exercised in your life. Start smaller. Identify one bill to tackle, preferably the account with the highest interest rate, and focus on retiring that debt. Or choose a card with a relatively low balance, pay it off completely, and vow to keep it clean (paid in full, on time, every month) so you can use it for new purchases without incurring additional interest while you pay down other debt.

Maybe the goal isn't realistic. "Save enough for a down payment on a house" could be out of reach if your income isn't covering your daily living expenses. Look for ways you can reduce those expenses so you have enough income left over to start saving. Setting a goal that is too lofty just leads to frustration.

Maybe the goal doesn't have a timeline. "Start an emergency fund" is a good goal, but when are you planning to start? How often will you contribute to the fund to build it, and by what date will you strive to accumulate what amount? For example, maybe you'll set aside ten dollars per paycheck, beginning with the next one. Maybe you're expecting a bonus or a tax refund soon, and you'll use that windfall to jumpstart your emergency fund.

If your resolutions are off-track, take another look at what you set out to accomplish and why. Then tune up your goals to make them specific, measurable, achievable, realistic, and time-limited.

What New Year's Resolutions did you make this year? How are you doing with them? I'd love to hear your comments.

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