The start of a new year is a great time to reassess your financial goals.
Don’t just make a few quick resolutions for 2019 to do better at everything you couldn’t quite get to or complete last year. Instead, focus on three of the most important actions you can take to maintain or improve your financial well-being:
- Budgeting – This is how you make your short-term goals happen: having enough to pay monthly expenses, enjoy life a little and meet your saving and investing goals.
- Saving – Here’s how to achieve medium-term goals: maybe it’s a big purchase or a vacation … things that are too big to come out of your monthly spending.
- Investing – This one might be the most intimidating, because it’s how you meet long-term goals, like retirement saving … and retirement is soooo far away, right? Nope. It should be a priority to invest now, to be sure you have enough later.
Now, challenge yourself to be SMART about those three areas. In other words, make your plans:
- Specific – Spell out your goals. Budget for what you actually spend, and be sure to remember how some expenses change with the seasons, such as heating, cooling and back-to-school expenses. Save and invest toward specific goals.
- Measurable – Name those dollars! “Save more” or “Spend less” is not good enough. If you have multiple goals, track your progress toward each one, rather than just watching your total savings or investments go up.
- Achievable – Set goals that are challenging but within reach. Make sure it’s a goal that YOU can achieve, with your resources.
- Realistic – Be honest with yourself. Don’t try to save or invest so much that there’s never anything left over. On the other hand, don’t budget so much for “fun” that you can’t save or invest. Being realistic goes both ways.
- Timely – When EXACTLY do you want to accomplish your goals? Give yourself a firm deadline. If you have a big annual goal, break it down into quarterly goals so you can assess your progress.
Members 1st Credit Union has the tools and the SMARTs to help you get your financial life in great shape. Stop by to find out how we can help!