Setting a New Year’s short-term personal finance, mid-term and long-term, is an essential step towards setting up your finances for a stress-free 12 months. If you’re not working towards achieving anything, you’re likely to always overspend. This will make you come up short when you need funds to meet important needs. New Year personal financial goals allows you to formally review your previous year’s personal financial process goals and update them.
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If you have never set a New Year money goal, take some time to formulate one so you can stay in charge of your finances. Here are short-term to long-term goals that financial experts recommend setting to help you live within your means, cut down money worries, pay off debts, save, and invest.
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Short-Term Money Goals
Setting small, specific, and achievable short-term goals provides you with the foundation and mental energy you’ll need to reach the bigger and long-term goals. These short-term goals are things you can achieve within the first quarter of the New Year.
To set your New Year short-term financial goals, you’ll need to carefully examine your finances and what you want to achieve within the year. Once you finish your review, use the information you gathered to review the previous financial year.
Identify areas in which you would love to see financial changes or improvements. Pick the ones that you can achieve within one to three months and set them as your short-term financial goals for the New Year. For example, your short-term money goal can be to save a certain amount of money within the first three months.
Whatever, it’s ensure that it’s realistic and sustainable. Besides setting the goals, you also need to work on a step-by-step plan on how to achieve them. Check these guides on Amazon to learn how to set short-term goals.
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Midterm Financial Goals
These are the goals that you want to achieve within six months, such as paying off certain debts or building emergency funds. Midterm financial goals are usually moderate risk, meaning you experience some fluctuations or uncertainty in your income, returns, or expenses.
To reach your midterm financial plan, you need to carefully plan your income and spending and save to reach those goals.
Long-Term Goals
Your biggest annual long-term financial goal could be to buy a car, start a new business, or acquire high-in-demand skills.
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The rule of thumb is to figure out how much you need to reach the goal. Then, begin to keep a certain percentage of your income from the beginning of the year toward reaching it. You can get a guide or two on Amazon to learn how to set a long-term financial goal.
Steps to Setting New Year’s Personal Financial Goals
Many things can determine how you set your New Year’s personal financial goals, including your income and previous year’s experiences. Remember, financial goal planning requires self-awareness and intention, so take time to think through goals.
Here are the steps to set your short-term, mid-term, and long-term New Year money goals.
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Make Your Money Goals Specific
One of the reasons most people don’t hit their New Year money goal is that it’s too vogue. For example, one might say I want to improve my finances this year. But what does that mean to you?
Narrow it down. Or, I want to move into another apartment. Okay, that’s great. But is it a one-bedroom or two-bedroom apartment and when do you intend to move? Here are templates on Amazon on how to break big goals into smaller chunks.
Your Goal Should be Measurable
So, your financial goal is to start a new business. Now, it’s time to figure out how much you need to start the business. After that, you’ll need to figure out if it’ll be a short-term, midterm, or long-term goal. This will help you figure out how much you need to save weekly or monthly to reach the goal.
Write Down Your Goals
Once you’re clear about your goals, write them down and stick them on your bathroom mirror, desk, and car. Go further to use them to create a screensaver and wallpaper for your gadgets. When you keep your goals where you can see them, you’ll stay motivated and on track.
When you break down your New Year’s personal finance goals into short-term, mid-term, and long-term, executing them is easy. It gives you a clear picture of what financial goal to concentrate on in January, the first quarter, mid-year, and the end of the year. Additionally, it removes the pressure of trying to do everything at once from you.
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