Up the odds of meeting money goals in 2023

With a new year ahead and the holiday fanfare behind, this is a great time to set money goals, especially if you recently spent a lot on gifts and travel and want to get your finances in shape.

Right now, you may be highly motivated to solve every single one of your money issues in the next few months, but daily life is guaranteed to get in the way. Your financial to-do list, once so full of promise, can eventually get stuffed in the back of a drawer while you manage more pressing matters.

So how can you improve your odds of success? It comes down to accepting that you won’t have the time or energy to complete every task to perfection. Creating a system where you can prioritise, plan ahead, and hold yourself accountable can help.

CONSIDER UNEXPECTED HIGH-IMPACT ACTIONS

Many start by setting a goal to trim frivolous costs, which can certainly be helpful, but there are other ways to make a big difference, such as basic estate planning through the creation of a will. Paying attention to your spending is always important, but don’t neglect taking steps to protect your money, yourself and your loved ones.

FOCUS ON WHAT ACTUALLY MATTERS TO YOU

So many money goals are born out of social pressure. You “should” want to save up to own a home, even if you’re happily renting. You “should” sacrifice short-term needs and wants to stash away as much as possible for retirement, even though it leaves you feeling deprived. But money goals should be tied to the things that matter most to you. If they aren’t, you’ll quickly lose interest.

You can combine goal-setting with a little planning, so expenses are less likely to creep up on you throughout the year. Think about what expected costs will be coming up in the next six to 12 months, like recurring bills, vacations, anticipated home or car repairs, and other expenses. This approach allows you to set money aside each month to put toward planned costs, as well as longer-term goals.

HOLD YOURSELF ACCOUNTABLE

Forgetting your goals can be far too easy, so to make something stick, write it down. It can be as simple as a handwritten list you keep on the fridge, or online calendar reminders that will nudge you every so often. For time-sensitive goals, set deadlines.

Enlist others’ help, too. Weekly or monthly household money meetings are useful or sharing your goals with a trusted friend or family member who can serve as an accountability partner.

RECOGNISE WHEN ‘DONE’ IS BETTER THAN ‘PERFECT’

It’s easy to get stuck in decision-making mode when trying to pick a high-yield savings account, credit card or possible investments, but eventually, you need to make a good-enough choice. Taking action now can have more of a positive effect on your life than waiting until you’ve painstakingly considered each option.