Did you set yourself new year’s resolutions for 2022? What about financial goals – did you set yourself any of those? It might not have been something you’ve thought about before but setting financial goals really can benefit you.

Have you ever run out of Money before your next payday? Did you look at taking out a payday loan or short term loan to keep you going? Having financial goals will help you notice how and where you’re spending. They’ll help you hold on to your money rather than run out of it.  

So, let’s look at how you can set your financial goals – and achieve them.

Decide What You Want In 2022

Start by looking at what it is you actually want. Do you want to make home improvements or buy a house? Do you want to go on holiday or save money on food? Have you got debts you’d like to pay off? Write down what it is you want to achieve. But make it something you really want, more than anything else.

Giving yourself a reason to save money is important. It’ll motivate you to do it and it’ll keep you focused.

Know How Much You Need to Achieve Your Financial Goals

Work out exactly how much you need in order to achieve each financial goal. For example, if you want to go on holiday, look at what it’ll cost you. Include everything in those costs. From what you need to buy before you go, to every expense you’ll have from the minute you leave the house.

Being clear on how much you want helps you find ways to make it possible. This might mean you change your holiday destination to one that costs less. It doesn’t mean your holiday is any less desirable, just more achievable.

Evaluate Your Current Financial Situation

This is where you need to take a close hard look at your income and outgoings. Write down everything you spend your money on. If you’ve got any money left over each month, then set up a savings account straight away. If your goal is to pay off debts, then pay this spare amount towards your loan repayments. Send that spare money into your savings account or to your loan the same day you get paid.

If you don’t have anything left over then look at where you can spend less. Make new rules for yourself, for example cook meals rather than getting takeaways. Create a strict budget and stick to it.

Track Your Progress

Check in with your bank, savings accounts and loans regularly. Keep an eye on how you’re doing. If you find you’ve had to dip into your savings look at why. Think about what else you could have done to stop this from happening.

Look at how well you’ve been doing at sticking to any new rules you set for yourself. Celebrate how successful you’ve been. Then see if you could improve on them, maybe go a step further?

Always remember, before you spend any money ask yourself this question. Do you need the item you’re spending your money on more than what it is you want to achieve? Because every penny you spend is a penny less towards making your goal become a reality.

Stay Positive and Don’t Get Discouraged

We all have unexpected bills that crop up and force us to use our savings or to borrow again. Don’t beat yourself up when this happens. Be grateful that you’ve managed to save money to pay for it, or that you’ve reduced your existing debt up to this point. Little setbacks like these aren’t the end of the world.

You can always look at finding other ways to top your savings back up to where they were, or to reduce your debts again. You could sell things you don’t use. You could take on a little part-time job. Whatever happens, don’t be disheartened. It won’t be long before you’ll be back on track again.

Conclusion

Having financial goals are just as important as any other goals you set for yourself. They give you a focus in your life that motivates you to keep going even when times are tough. The progress you make as you head towards your goal is uplifting. Not to mention how much better it is to know you’re in control of your money, instead of your money controlling you.

So, if you haven’t set any financial goals for yourself yet then do it today. There’s no time like the present, and your future self will thank you for it.

Disclaimer: We are not providing financial advice, these are just tips for informational purposes.