Making real resolutions and making them count.
Will your 2021 New Year’s Resolution be another empty promise to yourself?
How about 2021 is the year we make real goals and make them count.
2020 has thrown everything at us. We are all counting down the days until we can close off this year and put it behind us. But as we look back on a tumultuous year, we should take time and reflect on what we have achieved. Yes, it has been hard, but we have come out the other end, more resolute and socially-minded than before.
So what’s your resolution?
With the New Year looming, we also think about our token resolution we will attempt to meet. I like many others, come up with multiple goals in the New Year. Only to have them cast aside as the year gains pace and we get back into our normal routine.
“In the New Year – I will be fitter, I will lose weight, I will read more”
These are all good intentions, but they lack an important element.
What is “fitter,” what is “lose weight,” how many books are “more.” How can we achieve something that is not measurable or quantifiable? Success needs to be measured in order to be achievable, otherwise, they are just hopes.
Now, if we put a measurement to those resolutions, suddenly they become more concrete. Overlaying a timeline, it becomes something we can achieve.
“I want to be fitter” could be “I will run the city to surf this year” or “ I will walk 3kms a day.” Now we know what success is and know when we want to achieve it.
What’s your “Financial Resolution?’
Coming up with a good New Year’s resolution has many parallels with establishing good financial goals. We can have all the intent, but without some key features, making promises with yourself is useless. Good goals need to be achievable.
“I want to be comfortable in retirement”
“ I want to save for a house”
“I want to provide for my family”
All are good (and common) goals, but what do they really mean?
What is comfortable for one, is not comfortable for another.
How much do you want to save, 5% deposit? 10%? Or do you want to pay the whole thing in cash?
Now if we add a measurement to those goals, they can now become achievable and measurable:
“I want to be comfortable in retirement” – I want to have an income of $50,000 a year in retirement.
“ I want to save for a house” – I want to save $1000 a month.
“I want to provide for my family if anything happens to me” – I want to make sure my family has a house to live in, education is paid for and living expenses are met if something should happen to me.
To have clear, measurable goals allows us to track the progress and make adjustments where need be. If you want to discuss your “Financial Resolutions” or need assistance in creating them, Schedule a no-obligation Discovery Chat with us. We’ll help your review your current situation, your needs and your goals to set you on your path to financial freedom.
Discovery Wealth – The Hills trusted name in financial advice.
The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. Louella Jorge is an Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429. This editorial does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information, you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser before you act.