7 Important Financial Goals to Add to Your To-Do List for the Next Year

The Price Makers presents: financial goals to include on your to-do list for the next year!

When the new year comes, people start thinking about the things they want to achieve and their plans to get there. What I’ve noticed in the last few years is that the winter holidays come with negligence in terms of financial caution.

With Christmas shopping lists and end-of-year sales, it’s pretty hard to keep track of your spending. And that’s why you need to set a couple of financial goals!

Believe it or not, the end of the year is the perfect time to take stock of your financial goals and set some financial resolutions. Many of us tend to be excited about particular things when the new year approaches and then throw them to the wind.

If you need guidance on the financial goals you should be setting for the next year and a few tips on how to stay on track and achieve them, you came to the right place! Without further ado, here are 8 financial goals to include on your to-do list for the next year!

financial goals
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1. Get a grip on your credit card debt

One of the most important financial goals to set for the new year is to be more intentional about what you put on your credit card. If you set some money aside to get something on sale but end up spending the following years paying off your shopping spree on your credit card, I’m sorry to say, that you didn’t save any money.

Another thing that could hurt your credit score is carrying a balance that’s too large. The best thing you can do is keep your credit healthy, especially if you plan on applying for a new credit card or purchasing important things, such as a home or a car.

Of course, you can transfer high-interest debt to a low- or zero-APR card or personal loan, but the smartest thing you can do to stay on top of your money game and succeed in reaching those financial goals is to be mindful of your holiday spending.

2. Pick a discount

Experts recommend you take advantage of rewards programs and credit card points because they can help you reach those financial goals you might be having.

You’ve probably been tempted by cash-back programs before, but don’t expect to see big changes immediately, as big rewards grow over time and with momentum.

If you use a card for your shopping sprees, make sure it goes the extra mile for you, whether that means cash back or earning points for every purchase. Once you have enough points, you can start using them. Call your credit card company and ask them what you can get with those credit card reward points.

financial goals
Photo by PeopleImages.com – Yuri A from shutterstock.com

3. Set specific financial goals

As I’ve previously said, one of the things that helps you reach your financial goals is being mindful and specific about them. If you tell yourself that you’re going to save money in the next year, but you have no idea of the amount you want to stash away, it will be easy to lose track of your objective.

Avoid an unpleasant situation by writing down your financial goals and all the steps on how you’re going to achieve them, including a range you plan on saving each month.

Little things, such as paying more than the minimum amount due on your credit card monthly or canceling subscription services you don’t use, are going to make a big difference in the long run. may add up to significant savings.

It’s easy to be highly motivated and set unrealistic goals, so try to be mindful and take your routine and spending into consideration when you write down your financial goals, so you won’t lose focus during the process.

If you plan to get debt-free, start this journey by paying off high-interest credit card bills and non-tax-deductible debt. While you’re at it, and if you have the option to, sign up for automatic bill payment programs. You’ll steer clear of expensive late penalties, missing payments, and credit score damage.

4. Boost your savings

If you want to reach your financial goals, don’t forget about a regular savings plan. You won’t miss money you never see, so why not create a savings account that will help you keep track of your finances?

You can build stability and consistency if you automatically save a specific amount each month. Out of sight, out of mind, so trust me when I tell you that this method works like a charm. You don’t see that money, so you won’t be tempted to use it.

financial goals
Photo by Andrey_Popov from shutterstock.com

5. Insurance policies

When you set your financial goals for the next year, don’t forget to examine all of your insurance policies, including life, disability, renter’s, and homeowner’s. Are those limits adequate? It is time to increase the deductibles? Can you find a less expensive policy with similar coverage? Are you taking advantage of each discount offered to you by your insurance providers?

These are important questions to ask yourself when you think about money because it will help you have a clear idea of the things you need to pay and the amount you will be left with afterward.

6. Emergency fund

Many people make the mistake of thinking that their savings accounts double as their emergency funds, but that’s not the case. Your savings account will help you set money aside for a bigger purchase, whatever that might be, while your emergency fund will assist you in case of a severe problem, such as losing your job, being evicted, or unexpected medical bills, and so many other things.

You should aim to sock away roughly 6 to 12 months’ worth of living expenses so that you’re covered in case of an emergency. That will help you get back on track and not have to rely on credit cards or sell your assets.

7. Don’t forget about budgets

Last but not least, don’t forget to experiment with budgets, because that’s how you reach your financial goals in the following year! Whether you use money management platforms or a pen and paper to write down your notes and your goals, you need to experiment with budgets.

An easy thing to do is to break your expenses down into categories: insurance, utilities, groceries, entertainment, nights out, transportation, etc. This will help you identify the areas where you spend too much, and maybe you can find a way to save more.

Don’t forget to also divide them into wants and needs and keep track of what you spend your money on daily. You might be surprised to notice that you get plenty of things you don’t need, such as an overpriced coffee.

However, don’t take it too seriously, because that’s not good either. If you want to reach your financial goals, you can give yourself a small allowance each month (it can be $20 or $100, as much as you want) to purchase something you want but do not necessarily need. That will help you be more accountable because you’ll manage to save and treat yourself at the same time.

If you have a hard time putting money aside or if you want to save some cash, a piggy bank is going to make your life easier. Click here to get a fantastic one!

Do you have any other tips on how to reach your financial goals? Leave them in the comments below. They might be useful for other readers. If you find this article helpful and you’d love to read something else from The Price Makers, I recommend you check out this other post: 10 Best Things You Can Buy On Amazon Under $25

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