Halfway through the year is the perfect time to create or review your yearly financial goals. Whether you are eliminating consumer debt, building savings or sticking to a budget, these goals need to be reviewed to stay achievable.
Managing Yearly Financial Goals
Do you need to create yearly financial goals or have any goals that have to get back on track? Here are a few steps to take to make your goals achievable.
Setting SMART Yearly Financial Goals
Setting SMART goals for your finances can make the difference between succeeding and failing. Goals are more than just ideas or a dollar amount you want to reach; goals should be well thought out and follow certain criteria.
SMART goals are specific, measurable, attainable, realistic and timely. Here is what a SMART goal would look like if you are working to reduce credit card debt.
Specific: I will pay off $3,000 in credit card debt.
Measurable: I will apply at least $200 each month to that debt.
Achievable: I can achieve this if I cut back on entertainment, clothes shopping and dining out.
Realistic: I need to reduce my debt to apply more money to savings and future goals. My budget still works with the reduction in spending.
Timely: I will pay off this debt in a year and a half.
Try this debt payoff calculator to see how fast you could eliminate credit card debt.
Overcoming Financial Setbacks to Eliminate Debt
Maybe you have established yearly financial goals but haven’t been able to keep up with them. Here are three ways to get past those obstacles when trying to eliminate debt.
- Adjust the end date – less money means a longer time frame
- Redo the budget – find room elsewhere to make up for the new deficit
- Table another financial goal and focus on eliminating the debt first
Changing the plan due to circumstances is totally acceptable and happens to most people. Life happens. Just don’t give up! Adjustments aren’t a failure but a tool to reach your goals.
Increasing Financial Goals
If you’re having a good financial year, then congratulations! Hopefully, you’re still dedicated to your financial goals and doing really well. If so, you should consider increasing how aggressively you are tackling debt or building savings.
To speak to a credit counselor today about budgeting and managing your finances, call 800-769-3571.