4 Tips for Setting Financial Goals for 2023
We know resolutions are all the rage this time of year but we prefer setting goals over resolutions. Resolutions are statements that express what you want to change while goals are statements that express what you want to achieve. Ever since we launched Simply Finance, we’ve been empowering people to set and achieve their goals through our financial planning services. It’s what we do best. In this blog post, we’ll be sharing our top 4 tips for setting financial goals.
Before you get into setting your financial goals for 2023, it’s important to have an overview of your current financial situation.
After all, you can’t know where you’re going until you know where you are right now. Perform an audit of your personal finances. Review all your recorded expenses, list down your assets and liabilities, and assess your good and bad money habits. Examine the systems you have in place–what works for you and what doesn’t? Determine the systems you want to leave in 2022 and the systems you want to continue to do in 2023.
You can change the trajectory of your life forever by simply making a list of your top financial goals. Remember, goals properly set are specific, measurable, and actionable so make sure that your goals check all those boxes. Once you’ve set your goals you need to give each goal a timeline. How long do you think it will take you to achieve each goal? 1 year? 5 years? Or 10+ years?
Research shows that people with deadlines achieve their goals at a much higher rate than people without deadlines. Here’s a quick overview of how you can classify your goals as short-term, midterm, or long-term.
Short-term Goals
Timeline: 1 year
Examples of short-term goals: create a budget, build an emergency fund, start investing
Midterm Goals
Timeline: 5 years
Examples of midterm goals: get health and life insurance, start a business, pay off loans
Long-term Goals
Timeline: 10+ years
Examples of long-term goals: save for retirement, buy dream home, enjoy financial freedom
Here’s the thing about pursuing your goals–life will happen and at some point you might fall off track. And that’s totally okay! “Falling off track” doesn’t erase your progress so don’t let it discourage you from moving forward. You don’t have to do it perfectly. Just pick up where you left off.
The all-or-nothing mindset is unsustainable and sets you up for failure. The key to achieving your goals is consistency, not perfection.
If you’ve availed of our financial planning services, now is a great time to revisit your financial plan with your financial planner. Odds are you’ve grown and changed throughout the year.
What progress have you made?
Are your goals still the same?
What challenges did you encounter along the way?
These are the things you can openly and safely discuss with your financial planner. Your financial planner can help you reevaluate your financial plan and make the necessary adjustments for the new year.
