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Setting SMART financial resolutions

Setting SMART Financial Resolutions for the New Year

You have a new year ahead of you that is full of possibilities. This is the time to reflect on where you are going and what changes need to be made for your goals to become a reality. It’s also an excellent opportunity to establish some financial resolutions that will help you throughout the year. Here are SMART ideas on how you can make this happen:

Specific

Set a specific number or amount of money needed to reach your predetermined financial goal. Clearly defining the amount you would like to have in the bank or would like to invest will help keep you on track and motivated throughout the year. This step can also ensure that it’ll not be used on unnecessary spending once you meet your goal.

Measurable

Have a clear idea of how to measure your financial progress. You should define what you expect from yourself over the year and have tangible ways to determine if you progress toward this goal. The first step is defining your financial plan, so pick something realistic that will be manageable and measurable throughout the year.

By working with a financial advisor in Illinois, or whatever state you reside in, they can help you not only create a roadmap to meet your goals, but also conduct periodic reviews to make sure that you’re still on the right path.

Achievable

Set achievable goals; don’t be too hard on yourself. Clearly defining your goals in the beginning, will help you set expectations. Just because you want to make more money doesn’t mean it will happen overnight. Be realistic with your goals and choose that ones that fit what’s already going on in your financial life.

Relevant

Make sure your financial goals are relevant to your life right now. Ask yourself: “Is this something that I want or need right now?” Your goals can be anything you want, but make sure they are goals you can achieve.

Time-Based

The time frame in which your goals must be met should also fit into your life. If you set a goal of having $200,000 saved by the end of 2022, you’re creating a stressor for yourself. That may be an unrealistic goal to have accomplished in such a short amount of time. You should look at your finances and determine how much money you can reasonably save each month over a year. Then, set a goal that gives you enough time to hit this benchmark while still being achievable.

Financial Advisor in Illinois

If you are not careful, setting financial goals can be just as dangerous as it is beneficial. When you begin to plan your future finances, the excitement of fulfilling your life’s dreams can come across as overwhelming at first. You have to go into this SMART process with a clear head and realistic expectations about what you want to accomplish over the year and what you can do to make these things happen.

At Hagemann Wealth Management, our wealth management firm in Illinois can help you create a solid strategy to meet your changing demands. In addition to your accountant and attorney, our asset managers, wealth managers, and financial planners in Illinois will work directly with you to develop a comprehensive wealth plan.

Contact us at (630) 326-9007 if you have any concerns or questions about how we can assist you.

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