Recommit to Your Financial Goals: Practical Strategies for Success

Did you know that 80% of New Year’s Resolutions fail by the second week of February? That’s because most of us tend to lose steam as we get back into the groove of everyday life after the excitement of the holidays and New Year fade away.

 

The good news is that you can use the month of May or National Recommitment Month to refocus on your financial goals and come up with a solid game plan for the rest of 2017.

Take stock

First and foremost is an honest and fair assessment of what you’ve actually accomplished so far this year. Try not to guestimate but instead work with the facts. Here’s a quick 4-step process you can use to do this:

 

• Review your bank and credit card statements between January and April.

• Highlight your winning money moves e.g. increasing your retirement contributions.

• Identify your not-so-successful financial habits e.g. blowing your entertainment budget a few times this year.

• Measure these results against the initial goals you set in January.

This exercise will give you a clear idea of what you need to work on for the remainder of the year in order to achieve your goals.

Set smaller goals to reach the big ones

 

It’s so much easier to stay on track with your goals if you break them down into smaller milestones. For example, if you want to pay off $8,000 in credit card debt by the end of the year, splitting that number into a monthly goal of $1,000 is a lot more manageable.

 

You could even take things a step further by aligning your objective with each pay period. In this example, you would need to free up $250 per week or $500 every two weeks.

 

By working backward in this way, you’ll also be able to see whether your goals are realistic given your current circumstances. This step might just offer the push you need to tighten the purse strings or even take on a side hustle to boost your bottom line.

Start a money journal

 

Now that you have reassessed your goals, it’s time to stay on track each month. One of the best ways to monitor progress is to write it down. Your money journal doesn’t have to be fancy or formal. It could be as simple as keeping a notebook or using the notes app on your smartphone.

 

Having a money journal allows you to reflect on your journey through the year. In your money journal, you can also jot down your why. This can be 3-5 reasons for pursuing your financial goals in the first place.

Find an accountability partner or two

 

One of the easiest ways to stay on track with any goal is to find someone to keep you accountable. They don’t have to be a money expert. You can often find some excellent support from someone who is also focused on making good financial decisions and who is generally a positive influence. You could also consider joining Facebook groups or other online communities that encourage their members to be prudent when it comes to money matters.

 

Armed with these steps, it’s time to dust off your New Year’s money resolutions and get on track with your money goals during May, National Recommitment Month. Let us know how these ideas have worked for you!

 

Kim Galeta is a personal finance and lifestyle blogger at KimGaleta.com who recently paid off $45,000 in debt. She has over 8 years of experience in the financial services industry and holds an MBA in finance and corporate strategy.