Setting Financial Goals for 2023 And Achieving Them
Whether you’re just starting your career or are well-established in your field, it’s crucial to understand your financial goals and how to achieve them.
“Financial planning is bringing the future into the present so that you can do something about it now.” — Alan Lakein author of How to Get Control of Your Time and Your Life
Year 2022 was the first year I had planned and followed the plan throughout the year. I would not say I achieved every target, but I have come close.
One of the goals is to build an income stream from things I love doing.
I started with Epoxy Coaster Business because I like arts & crafts, making different things, and being creative, but it didn’t work. Then I went into Quilling Paintings, I was good at it, but there were very few customers. So, it was a flop. After failing with two more ideas, I was feeling down and demotivated. My thoughts were not clear. I didn’t know how to proceed further.
So in October, I started writing a journal to sort out my thoughts and have a clear view. I never considered writing as a source of income until November, when I realized how good I feel while writing something, and the cherry on top was that people are willing to pay for it.
I couldn’t have come this far if I were to be sitting idly and doing nothing.
Setting financial goals can be a helpful way to focus your efforts and stay motivated as you work towards achieving them. Here are some steps I follow to set and achieve financial goals for 2023:
Identify Your Financial Priorities
What do you want to achieve financially in the next year? Some common financial goals include saving for retirement, paying off debt, building an emergency fund, or maybe you want to buy something.
“The most important thing about a budget is to make sure it reflects your values, goals, and priorities.” — Olivia Mellan
It is always better to be specific. For example, I want to double my income this year instead of I want more money. Being specific gives you a target that you can look at and measure yourself how far you have come.
Keep it simple, specific, and ambitious, and aim higher.
Do The Math
Determine how much you need to save or pay off. Once you know your goals, you can calculate how much you need to save or pay off to achieve them. For example, if you want to save $10,000 for a down payment on a home, you’ll need to determine how much you need to save each month for that goal.
There is no need to be specific in this case and calculate down to every penny.
You just want an overall road-map to your target so that you don’t get lost or distracted from your goal.
Create a Budget
A budget can help you allocate your income and expenses effectively so that you can save or pay off the amount you need to achieve your financial goals. Consider your fixed expenses (e.g., rent, utilities), variable expenses (e.g., groceries, entertainment), and discretionary expenses (e.g., dining out, shopping).
“A budget is telling your money where to go instead of wondering where it went.” — Dave Ramsey
Budgeting is the first step of tracking.
Make a Plan and Track Your Progress
Once you have a budget and a plan in place, it’s crucial to track your progress to make sure you’re on track to achieve your financial goals. Consider setting up automatic transfers to your savings account or using a budgeting app to help you stay on track.
Tracking is the most important thing you should do to stay on track.
“The key to financial success is to start saving early and consistently, no matter how small the amount.” — David Bach
Things to Avoid on Your Journey
Many things hamper the progress and distract us from the target. Here are a few.
Procrastination
One of the biggest things to avoid when setting financial goals is procrastination. If you keep putting off making a plan or taking action to achieve your goals, you will never get there.
Lack of Focus
Another thing to avoid is a lack of focus. If you have too many financial goals, you may become overwhelmed and lose sight of what is most important to you. It is important to choose a few key goals and focus on them rather than trying to tackle everything at once.
Not Setting Specific, Measurable, Achievable, Relevant, and Time-bound Goals
It is important to set SMART goals, which means that your goals should be specific, measurable, achievable, relevant, and time-bound. If your goals are too vague or unrealistic, you will be less likely to achieve them.
Not Having a Plan
Achieving financial goals requires a plan of action. Make sure you have a clear and detailed plan in place, including specific steps you need to take and deadlines for each action.
Not Tracking Progress
It is important to track your progress toward your financial goals to see how you are doing and make any necessary adjustments. If you are not tracking your progress, you may not realize if you are on track or if you need to make changes to your plan.
Not Seeking Help
If you are struggling to achieve your financial goals, don’t be afraid to seek help. This could mean hiring a financial advisor, working with a budget coach, or seeking advice from friends and family.
If the story was useful, share it with others so they can learn too. If not, then give feedback.
It will help me improve.
This write-up is for informational purposes only. It does not serve the purpose of any legal advice. You are solely responsible for making your own investment decisions. If you choose to engage in such transactions with or without seeking advice from a licensed and qualified financial advisor or entity, then such decision and any consequences flowing therefrom are your sole responsibility.
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