Three Simple, Badass Financial Goals for 2018
I’m a firm beiever in the power of goals and making plans. You can’t achieve anything unless you know where you’re trying to go and actively forming a roadmap of how you’ll get there. You need a starting point to get to an end point.
With 2017 wrapped up, it’s time to turn our eyes and goals to 2018. ‘Be better with money’ is always one of the top three resolutions for every year. Always! While ‘being better with money’ is a good sentiment, it’s not exactly a goal. It’s too vague, and it doesn’t measure what being ‘good’ means or what needs to happen.
So here are three goals you can set for yourself this year that will help get your finances into shape. No more walking around broke and sad this year; 2018 is going to be the year that your money starts working for you.
Goal Number One: Track Your Income and Expenses
It’s not sexy, but this is the single best thing you can do for yourself next year. There is so much power in understanding where your money comes from and where it goes. This basic formula will give you the formula to start earning and saving more, and ultimately, building that financial security and wealth you want.
There are a ton of different ways to track your income and expenses. You can use an app like Mint or You Need a Budget, you can track with pen and paper, or you can use a spreadsheet. I personally use a spreadsheet, which you can snag here.
Every month next year, set aside an hour to input all your expenses. And I mean ALL. Every trip to McDonalds, every tank of gas, every rent check. There’s no shame in spending money; you just want to understand what you’re spending on.
Tracking your money gives you the chance to say ‘damn, I spend a lot on Lyft rides. Maybe I can save there by carpooling or walking more.’ Once you see where your money goes, you can see where you need to cut back to save.
Goal Number Two: Eliminate Debt
Debt is a drain on you money any way you cut it. Even if you use debt to get something you can afford out of pocket, (like a house, not a new pair of sneakers), it’s still a drain. Add up all your monthly debt payments; how much money is it? Now imagine adding that into your spending or saving money each month. I’m willing to be it’s a big difference in your lifestyle.So let’s crush that debt this year. Here’s how to set a specific goal. Choose a timeline, a tactic, and a specific number you want to pay off. For example; I want to pay off $10,000 in credit card debt by December 2018 through making an extra monthly payment of $200.
Now you’ve got a goal and a plan! You need to make an extra payment once a month of $200, you’ve got 12 months to do it, and you know which debt you want to eliminate.
Goal Number Three: Forgive Mistakes, and Keep Moving Forward
So often we set goals and when we realize that we’re not hitting them, we abandon them completely. ‘If I can’t do this perfectly and RIGHT NOW, I obviously can’t do it at all,’ we think to ourselves.
It’s human, but it’s not something you’re going to do next year. You can fail, you can make mistakes, but you can’t give up. If you absolutely blow your budget in March, you can get back on the horse in April. If you overspend on eating out one week, the next week you can get back on track.
Mistakes are not going to derail you. Forgive yourself and keep moving towards your big picture goal.
2018 is your year of money. Want it, earn it, save it. Manifest money in your life and take good care of it. We’re building wealth baby, and it starts now.