Glen features in this months issue of Urban Village sharing the 4 reasons your New Years resolutions will fail.
We all kick off the New Year with the best of intentions. From signing up to an 8-week fitness challenge at the gym to promising we’ll meal prep our lunches every Sunday, setting ambitious resolutions may seem like the perfect way to get the New Year off to a productive start. But what happens next? It is March after all! Discover the top four mistakes that could be sabotaging your chances of hitting your financial goals in 2020.
- Your goals aren’t SMART
Creating New Years’ resolutions is about more than just writing a list and hoping everything will fall into place. Whether you’re looking to finally pay off your credit card debt or saving to buy your first property, setting financial goals is all about planning with an end point in mind.One of the best ways to set effective money goals is to follow the SMART method. Whatever you want to achieve for your finances in 2020, make it Specific, Measurable, Achievable, Relevant and Time-bound. Instead of setting the goal to “start investing”, try creating a SMART goal such as “work with a financial adviser to invest $10,000 in a share portfolio by June to start generating passive income”.
- Your goals aren’t aligned to your values or motivations
Consider what’s most important to you in the long term and assess whether your goals match up with these core values. If owning your own home is a top priority, reassessing your budget and getting serious about investing might need to be your focus for the year ahead.
- You write your goals down without a plan of action
You wouldn’t turn up for dinner at Chin Chin on a Saturday night without booking ahead, so why set a New Years’ resolution without a plan of action? Once you’ve clarified your ‘why’, the next step to hitting your financial goals is to create a roadmap of actions to get you there. Break down big goals like “saving $50,000” into weekly and monthly actions such as setting up automatic transfers to match your pay cycle and create realistic weekly budgets. The golden rule? Hold yourself accountable by scheduling regular check-ins thorough the year to assess whether or not you’re on track.
You are not prepared for setbacks or roadblocks
Unfortunately, life doesn’t always go to plan. No matter what the year ahead throws your way, being prepared for stumbles and setbacks is essential. From your car breaking down on Oxford Street to forking out for a new phone after a mishap in the pool, expect the unexpected and be ready to adapt to roadblocks that may pop up throughout the year.
And most importantly, get back on the horse
Even when unexpected challenges arise, remember you can always find a way to get your finances back on track. Instead, use these hurdles as motivators to help you pivot, readjust your approach and take proactive steps towards meeting your financial goals for 2020.