Page 25 - MCUL: Contact Magazine - Q4 2019

SETTING FINANCIAL GOALS
FOR THE NEW YEAR

By Ariel Ryan

The start of the new year is a great time to set goals of all income, budget, debts and net worth. Understanding these
kinds, including fi nancial ones. Perhaps credit union mem- four aspects of your fi nancial health will show you how to most
bers are reevaluating how their fi nancial goals panned out effectively construct your fi nancial plan and to prioritize goals.
during the past 12 months. Below are four steps that will
help them gain clarity on what fi nancial goals can mean, as 3. Create a plan with steps.
well as how to craft a very attainable plan for success. If, in Step 2, you discover that your spending habits are over-
taking your income, you’ll want to establish certain fi nancial
1. Think about what you want. And why. habits before creating a plan for your larger goals: Create
Financial planning goals are lifetime goals. Think about it: If and stick to a personal budget, build an emergency fund,
your dreams for your life include regular or extensive travel, begin paying off debt beyond minimum payments and start
or a private education for your children, these things are saving regularly for retirement.
also fi nancial goals because you will need suffi cient funds to
achieve them. So, your fi rst step is to think about (and even Once you’ve done those things, you can design a workable
better, write down) what your lifetime, or lifestyle, goals are plan to achieve your longer-term fi nancial and life goals. This
and why they are important to you. The “why” is key because plan should contain smaller steps — such as a pyramid of
it will serve as a compass point when obstacles, challenges short-term goals that support and build up to a capstone goal.
and tough decisions come along. Consider layering and structuring these steps in three-month,
one-year and three-year increments. With these shorter,
Here are some lifetime and fi nancial goals that might be closer time frames, it’s easier to map out actionable steps
important to you: without becoming overwhelmed, losing sight of ultimate
goals or coming up short in the end.
• Retire early
• Own a vacation home 4. Keep track.
• Travel Every time you achieve a step or goal of any size, be sure
to track and celebrate your progress! You deserve the
• Send your children to certain schools
celebration, and tracking your success will keep your ultimate
• Have a second career or start your objectives clear and top of mind. Monitoring your progress
own business also gives you a chance to make sure you’re staying on track
• Work part-time to pursue other passions and to make any necessary adjustments — if you got a pro-
motion or had an unexpected expense recently, for example.
2. Assess where you are now.
Before you move forward with a plan to achieve your goals, Whatever your fi nancial dreams are for 2020, plan accordingly,
you’ll need to assess where your fi nances are right now. and plan early, in order to achieve them. ■
Specifi cally, you’ll want to have accurate fi gures for your

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