ôô

How to Set Better Personal Finance Goals for 2019

Find out how to create financial goals you can stick with and achieve. Money Girl Laura Adams offers essential tips plus her 7 personal finance resolutions in 2019.

By
Laura Adams, MBA,
Episode #577
How to Set Better Personal Finance Goals for 2019

If you’re like many people, you want more health, wealth, and wisdom this year. But as January comes to a close, you may already be losing sight of your New Year’s resolutions. Or maybe you didn’t create any goals in the first place. Well, it’s never too late!

I can’t help you with health or wisdom tips—you’ll need other other experts, such as the Nutrition Diva, Get-Fit Guy, and Savvy Psychologist, for those. But I can make it easier for you to create and accomplish better money goals. Keep reading for tips and to find out my personal financial goals for 2019.

Tips to Set Better Personal Finance Goals

Setting financial goals can feel overwhelming because it requires some deep thinking. The best goals resonate with you on an emotional level, which makes them easier to remember and keep. You have to get to the core of what you truly want and the envision the outcomes you desire.

Improving your finances comes down to three steps:

  1. Understanding what your financial situation is today.
  2. Knowing where you’d like your future financial situation to be.
  3. Acting on what needs to be done to bridge the gap between the two.

The first step in setting goals is getting organized so you can assess your level of financial fitness.

Here’s an excerpt from my new book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, that will give you a bird’s eye view of your finances and create more meaningful goals:

I’d like you to take a step back and look at your financial life holistically and create an overarching financial plan. Why is a financial plan important? Think of it this way: If you were building a new home, would you pour a concrete foundation before having finalized your house plan?

That would be extremely risky and probably leave you with some major design flaws and regrets. Creating a financial plan is just like having a detailed house plan—it shows what you intend to create with your money. It’s part of the process of identifying your goals and determining how you’re going to manage your money to achieve them.

Financial planning may seem boring, but you just have to hunker down and do it if you want to make the smart moves necessary to live a financially secure life. It’s possible to get lucky and end up having enough money to reach dreams, such as retiring with a big bank account or becoming debt free, by chance. But I wouldn't count on it!

Financial planning doesn't have to take a long time or be complex. You don’t have to be a financial whiz or have a high-paying job in order to achieve your financial goals. Simply reflect on the big picture of your life. What financial and non- financial dreams do you have?

A useful exercise is to imagine your life five years from now. Consider where you're living and how you spend your time. In five years, what would you be proud to say that you had accomplished between now and then?

Stretch your imagination out further and do the same for your life in 10 or 20 years. Then imagine you're on your deathbed with just a few hours left to live.

What accomplishments would make you feel good about yourself even in your final hours?  These questions can give you important information about yourself and inspire you to begin planning for what truly matters to you.

What accomplishments would make you feel good about yourself even in your final hours?  These questions can give you important information about yourself and inspire you to begin planning for what truly matters to you.

This exercise will help you identify all your financial goals, big and small, so that you know what you’re working toward.

Pages

About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a trusted and frequent source for the national media. Her book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show. 

 

The Quick and Dirty Tips Privacy Notice has been updated to explain how we use cookies, which you accept by continuing to use this website. To withdraw your consent, see Your Choices.