Today, I want to start with something a bit more sobering before delivering insight on financial goals.
What occurred in Butler, Pennsylvania, this weekend was shocking, to say the very least. We’re all collectively a bit shaken seeing real violence unfold on live television. The images and sounds stick with you long past the moment they occur.
Which is why, I want to encourage you, if you haven’t already done so, take some time to process it with someone, whether you’re feeling anger, fear, or even nothing at all.
In the aftermath of these kinds of events, it’s necessary to take time for reflection, not just reactions.
When we get stuck in our initial reactions and heated emotions, it can sometimes cause us to forget the people on the other side of our responses. And the real truth here is that human life is valuable, no matter how much you disagree with someone.
Let’s get vision for how we can reach toward each other rather than simply standing on opposite sides of viewpoints and politics. Caring for one another makes us better as Americans.
Now, since there’s no good segway from that topic, let’s just jump right into today’s topic: financial goals. I’ve got some thoughts for my Columbia, SC readers…
Financial Goals: How My Columbia, SC Contacts Can Make Solid Ones
“Those who do not remember the past are condemned to repeat it.” – George Santayana
Mid-summer is definitely the point in the year when a lot of people’s financial goals have come to a dead halt. We all have a lot of ambition at the beginning of the year but lose steam over time because, well, life.
But let me be a friendly voice of wisdom: Simply setting goals isn’t enough. You have to create a strategic plan to accomplish those goals – and then stick to it.
So, maybe you can rewrite those financial goals and spend the second half of 2024 incrementally working toward them. This kind of practical plan will be especially helpful when school and holiday shopping are added into the mix.
Start by reflecting on where you’re at financially. Consider the following questions:
- What are your biggest financial stressors?
- What unexpected expenses or financial surprises did you encounter last year or in the first half of this year?
- What do you expect to encounter in the second half of the year?
- How well are you managing your monthly budget?
By understanding your financial behavior, you can zero in on patterns and identify areas for improvement.
Now, instead of overwhelming yourself with too many goals, set fewer, more focused goals. Focus on the top three priorities for the year. According to Savology, 83 percent of people who set financial goals feel better about their finances within a year (!). Having a clear focus and a written plan just makes sense.
Yet surprisingly, 72 percent of households lack a written financial plan. That won’t do if you want to see change. You need a roadmap to achieve your financial goals.
So, here’s a basic rundown to help you create a financial plan for this year (and you can re-use it come January for next year’s goals):
#1 – Review your income, tax situation, budget, and net worth. This provides a baseline for your financial goals.
#2 – Set SMART goals (Specific, Measurable, Achievable, Realistic, and Time-bound). For example, if you want to save for a vacation, plan the destination, timing, and estimated cost. Adjust your plan as needed to ensure it’s practical given your income and expenses.
#3 – Write down your goals in a spreadsheet, worksheet, or notepad. And make sure to regularly check in and track your progress.
#4 – Know the “why” behind your goals. Understanding the motivation behind them can help keep you focused. For example, eliminating credit card debt frees up income for important life events, like paying for a child’s wedding.
#5 – When you achieve a significant goal (like paying off a big debt or reaching your savings goals), reward yourself by funneling that money into investments or even saving for something you’ve really been wanting (a new living room set or landscaping for the house).
Remember, when you’re trying to get to a place of security and wholeness with your money, there is a basic checklist of things you’ll want to make sure you’re aiming for (and in this order).
- Establish an emergency fund
- Pay off your debt
- Save for retirement
- Buy life insurance
- Save for college
And perhaps the most important thing to do is to revisit your financial plan regularly for the remainder of the year. Maintain a vision board, set monthly money goals, review your budget, track spending and net worth, and monitor your progress.
As you make (or re-make) your financial goals, think about these steps as a means to inspire other Richland County people in your life who want vision for their wealth. In a time when the prices are high and the future is unclear, these kinds of actions prepare you to face both.
And, I’m here to help make sure your tax footing is sound as you plan:
Staying financially nimble,
Akuathayre Snell