5 Financial Goals to Set in 2023
As we begin the third quarter and the new year gets into full swing, setting goals is a popular activity for many. Whether you have fitness goals, career goals, or financial goals, the new year is a great time to reset with a clean slate and begin taking action to reach your goals. Good financial goals can be hard to come up with; there are so many different approaches you could take, and of course, everyone’s financial situation is different. However, if you’re focusing on financial stability and setting yourself up for overall financial success, perfecting your approach to personal finance, budgeting, and investing is the best place to start.
Why is Setting Financial Goals Important?
According to a study referenced by CNBC (by Dr. Gail Matthews), those who write down their goals are 42% more likely to accomplish them. Before reaching your financial goals, you must first understand how to set financial goals. Making them attainable, and measurable, and tracking your progress are a few critical pieces of the puzzle. Setting financial goals each year can ensure that you continue working toward them, offer a way to determine whether you’ve met your goals, and give you a foundation for setting good financial goals in the years to come.
5 Goals to Consider
Your financial reality will be different from the financial situation of your friends and neighbors, so you have to figure out what goals make the most sense for YOU. Personal finance is a large umbrella, and if you’re having trouble figuring out where to start, consider focusing on one or more of the below goals.
Make (and stick to!) a Budget
Every year, Debt.com conducts a survey, and in 2022 85% of respondents said that budgeting has helped them get out of debt or stay out of debt, highlighting just how effective this practice can be. Budgeting can be done online, in an app, or with a notebook you have sitting in a drawer somewhere. Start by tracking your spending to get a breakdown of your current habits, then set budget goals and figure out the steps you’ll need to meet your budgeting requirements.
Set an Investment Floor
Making long-term investments is a great way to build your wealth over time. You don’t have to participate in day trading or take crazy risks to make money; instead, find a steady ETF or mutual fund that you can put a bit of money in each week or month, then simply let it do its job. By setting a minimum investment amount for yourself, you can build it into your budget with ease.
Reduce Your Debt
Having debt is costing you money. Paying interest on student loans, credit cards, and even mortgages can be incredibly expensive in the long run. Start making larger monthly payments on the debts that you owe to reduce your balances and get out from under those massive interest payments.
Prioritize Your Emergency Fund
Any healthy personal finance plan will have an emergency fund. Your emergency fund should have at least 3-6 months’ worth of expenses in it. This way, if you lose your job or are hit with a costly problem, you have the money to cover it without endangering your overall financial health. A safety net will help you maintain financial stability and peace of mind.
Find the Right Side Hustle
When possible, you should diversify your revenue streams. A side hustle is a good financial goal because it helps bring in more money to your household, expanding your saving and investment opportunities. There are many different side hustles out there; you just have to find the one that works best for you!
Take Action Today
Now that you have a better understanding of how to set financial goals and what some good financial goals look like, you can get started on outlining your 2023 goals. The most important thing is that you take action soon; don’t set goals and then forget about them. If you’re having trouble taking the first steps toward reaching your goals, do these five things and you’ll have momentum in the right direction:
1. Track your expenses this month to get a current picture of what you’re spending. Then, you can use that data to set your budget for the remaining months of the year.
2. Open an investment account on a platform like Charles Schwab or Vanguard. There are many platforms to choose from, and once you set it up, you can begin investing a little at a time.
3. Set automatic payments on your credit card for as much as you can comfortably pay each month. Bonus points if your payments are higher than the minimum amount required!
4. Figure out how much you’ll need to put in your emergency fund and make your first contribution to it.
5. Write down a list of 5 potential side hustles, then figure out what you need to get started with each. This will help you narrow down your approach and find the best option for you.
Conclusion
Reaching your financial goals doesn’t have to be hard or overwhelming; you just have to get started. Don’t wait, take action today to set good financial goals and build the personal finance future of your dreams.
Did you find any of the five financial goals mentioned above helpful? With the information provided, which of the steps do you plan to implement today? Is there anything preventing you from reaching your financial goals?
If you found this article helpful, please tell a friend to tell a friend, so others can learn about prioritizing their finances and setting goals to ensure their financial health.
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