You may already have fallen off the band wagon with your New Year’s resolutions to get in shape, become more organized, learn a new skill or whatever the resolution may have been. Despite even the best intentions, it can be easy to see those resolutions go by the wayside.
However, if one of your resolutions involved your finances, whether it was to reduce debt, spend more wisely, increase retirement savings or something similar, it is important to keep that resolution. Some people start out really big with their resolutions. Sometimes, starting out small will help make it easier for you to stay on track. To help keep you on track, there are a number of strategies to keep in mind in order to reach your financial goals. It’s always a good idea to write down your goals and post them in a visible place to serve as a daily reminder.
Be specific about your goals. Do not just say you want to save more money. For example, set a goal to save a certain amount of money each year. Divide that by the number of times per year you get paid, and move that amount into a savings account every payday. That way the money is “gone” before you can spend it. Pretend it is simply another household bill that must be paid.
It’s also important to be specific about other goals as well. If you want to take a family vacation, figure out what it is going to cost, divide that by the number of months until vacation time and set aside that amount of money. The same holds true for other purchases or savings goals. Track your progress. Putting pen to paper, creating a spreadsheet or filling in a ledger – these regular reminders help you remember your goals and how important they are for you to meet.
Take pride in your accomplishments, even the small ones, because they add up quickly. Eating breakfast at home every morning could save you $3 to $5 dollars a day, which, over a year’s time, adds up to a savings of $750 to $1,250. Even forgoing just one breakfast out a week could put an extra $150 to $250 toward your savings goals.
You’ll be amazed at how much money you can save by cutting out even just a few small expenditures each week. Most likely you won’t even miss the things you’re no longer purchasing. Don’t get discouraged if you need to rethink your goals. Economic uncertainty is the new reality, so it is important not to underestimate how things can change quickly.
Unforeseen circumstances, such as a reduction in working hours or a large medical expense, could force you to change your savings plans. The best way to cope with these kinds of situations is to be fiscally fit, and if you are already following a plan, then you are working to achieve financial stability.
Educational programs of the Texas AgriLife Extension Service are open to all people without regard to race, color, sex, disability, religion, age or national origin. The Texas A&M University System, U.S. Department of Agriculture, and the County Commissioners’ Courts of Texas Cooperating.