start the new year strong with financial goals
by Tricia Bush, CPA, CFP®, Partner, Bestgate Advisors
The new year is here, and for many of us, it’s a time for fresh starts and new opportunities. While some people might focus on fitness or hobbies, there’s another area that can have a huge impact on your life: your finances. Don’t worry, setting financial goals doesn’t have to be overwhelming. Whether you’re dreaming big or starting small, every step you take can bring you closer to financial peace of mind.
Let’s break it down into manageable pieces, with real-life examples and easy action steps you can take today.
Big Goals to Aim For
1. Increase Your Retirement Savings. It’s never too early—or too late—to start saving for your future. Even small increases to your retirement contributions can make a big difference over time, thanks to the magic of compound interest.
Action Steps:
If your employer offers a 401(k), aim to increase your contribution by 1% this year. If they match contributions, make sure you’re putting in enough to get the full match (that’s free money!).
Don’t have a workplace retirement plan? Open an IRA and set up automatic contributions. Even $50 a month adds up.
Got a tax refund coming? Put some or all of it into your retirement savings.
2. Pay Off High-Interest Debt. If your credit card balance is looking a little higher than usual after Christmas, you’re definitely not alone. The holidays can put a strain on even the best budgets. But now’s the time to tackle that debt and stop those interest charges from piling up.
Action Steps:
Make a list of all your debts and their interest rates. Knowing where you stand is the first step.
Focus on paying off the debt with the highest interest rate first (avalanche method) or start with the smallest balance for a quick win (snowball method).
Think about ways to give your budget a boost—maybe sell items you don’t use anymore or pick up a few hours of extra work.
Consider balance transfer offers or personal loans with lower interest rates if it makes sense for your situation.
Small Goals with Big Impact
1. Track Your Spending. Ever get to the end of the month and wonder where all your money went? You’re not alone. Tracking your spending is an eye-opener, and it’s the first step toward taking control.
Action Steps:
Use a budgeting app, your bank’s spending tracker, or just a good old-fashioned notebook to jot down everything you spend for a month.
Look over your expenses and highlight any surprises. Those little purchases—like snacks or extra trips to Dunkin’ Donuts—can really add up.
Set a weekly limit for things like dining out or other non-essentials. It’s easier to stick to a plan when you have a clear target.
3. Save for a Specific Treat. Sometimes saving is easier when there’s something fun to look forward to—like a family dinner out, a weekend getaway, or even just a new gadget you’ve been eyeing.
Action Steps:
Pick your treat and figure out how much it will cost. Be specific!
Break it into smaller savings targets, like $10 or $20 a week. You’ll be surprised how quickly it adds up.
Use a jar, envelope, or a separate account to stash your savings. Watching it grow can be surprisingly motivating.
Tips for Staying Motivated
Setting goals is one thing; sticking to them is another. Here are a few tricks to keep yourself going:
Find an Accountability Partner: Whether it’s your best friend, spouse, or even a coworker, share your goals with someone who can cheer you on (and call you out if you veer off course).
Celebrate Small Wins: Paying off a credit card? Saving your first $500? Treat yourself to something small and meaningful when you hit milestones.
Revisit Your Goals Regularly: Life happens. Check in with yourself monthly to see how you’re doing and adjust as needed. Progress is progress, no matter how small.
The Power of Starting Small
You don’t have to overhaul your entire financial life overnight. The key is to just start somewhere. Small, consistent steps can lead to big results over time. Imagine where you could be by the end of the year if you start today.
This January, challenge yourself to pick one or two financial goals and take that first step. You’ve got this! And remember, every dollar saved, every debt paid off, and every habit you improve gets you closer to the financial freedom you deserve.
Disclosure: This article is intended for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor or planner before making any financial decisions.
