A new year comes with a clean slate and a number of well-meaning financial goals—spending less, saving more, curbing that gourmet food shopping habit! Whatever your targets may be, it’s easy to lose motivation. So, instead of making grand, sweeping declarations, set yourself up for success this year by setting smart financial goals. Here’s how.
Understand Who You Are And What You Want
First off, don’t do something just because your friend or a social media influencer is aspiring to. When you don’t believe in your goal, it is difficult to muster the resolve you need to see it through. Instead, understand what your values are and the life you have always envisioned for yourself and your family. This will give you a good idea of the goals you should set for yourself.
Dream In Technicolour!
The most successful businesspersons, authors, actors and world leaders didn’t make it big by playing it safe and neither should you. Don’t be wary of setting goals that seem challenging. Shoot for the moon and you’ll land among the stars, they say, and in some cases it an effective tactic. If your goal is to save to buy a car in three years, see if you can push yourself to do it in two and a half years. Or, if you want to save Rs. 80,000 to buy the latest iPhone in 6 months, try rounding it off to Rs. 1 lakh and divert the extra Rs. 20,000 towards investments. Even if you save only Rs.10,000 more, you’ll surpass your expectations.
Sail Smooth With Bite-Sized Missions
There’s no harm in setting yourself up for a challenge, but to ensure that you actually make your way to the finish line, break your big goal into smaller, bite-sized chunks. A step-by-step approach will make it less intimidating, and you’re less likely to give up halfway too. Also identify milestones along the way and build in rewards. Like pitstops in an F1 race, they’ll help you stay motivated and ensure you’re raring to get to the next milestone!
Keep Your Eye On The Prize
Experts firmly believe that if you channel your thoughts and actions towards fulfilling your financial goals, the job on hand will become infinitely easier. So, don’t list your financial goals and stash them in a drawer. Review them regularly and streamline your actions to work towards them.
Also, give it time. If you’re looking to build wealth significantly, understand it won’t happen in a matter of months. Sustainable growth will take time and there will be ups and downs along the way. Instead of losing heart, dust yourself off and keep going. Decisions from a place of extreme emotion or frustration won’t serve you well and can do more harm than good, so always keep a level head, weigh the pros and cons and only then make a choice.
With these tips serving as your guiding light, you can surely make this year one for the books as far as your finances go!
The writer is CEO, BankBazaar.
BankBazaar.com is a leading online marketplace in India that helps consumers compare and apply for credit card, personal loan, home loan, car loan, and insurance.