Financial Success Starts with Realistic Goals

The New Year is here, and, if you’re like most people, you’re probably going to set a resolution or two. Maybe one of those resolutions will be to improve your financial situation.

If that’s the case, know that you don’t have to make some huge, unattainable goal, like saving thousands of dollars in a short time period. In fact, you shouldn’t set very difficult goals. Instead, you should set reasonable, realistic goals that you can build from.  

Following a few basic tips can help you with goal-setting and with reaching those goals too!

Avoid the Comparison Trap

First things first, let go of any ideas about where you “should” be in life or how much you “should” have. People often look at others their age, their accomplishments, and their incomes and feel bad if they don’t measure up.

Your goal shouldn’t be to reach someone else’s idea of success. Stop comparing your situation to others, and just work with what you have. If your first financial goal is something small, like saving for a car or just building an emergency fund, that’s fine.  You have to do what’s right for you and you alone, and comparing yourself to others is discouraging, which can cause you to give up before you even get started.

 Put Emergency Funds First

As mentioned briefly above, a small but important financial goal is to have an emergency fund. In fact, if you don’t have an emergency fund, that should be your very first financial goal. This fund can carry you through tough times or when life throws you unwelcome surprises.

Set a goal of saving enough money so that you could live comfortably for one month if you suddenly lost your income source. Once you have that saved, aimed for two months’ worth of savings and then three- the amount generally recommended by financial experts.

Building this level of savings can take work, but it’s worth it for the security and peace of mind you’ll have.

Once you reach one goal, it’s even easier to set and reach another. Work at your own pace and celebrate your success. Before you know it, you’ll be further along than you ever thought possible!