As we come to the end of the year, one of the first things that come to mind is New Year’s resolutions. What are you going to work on over the next 12 months? What needs to improve in your life from the past 12 months? A career change? A location change? An attitude change? We all dream of being a better version of ourselves in the upcoming year. What are some things we can do now to set ourselves up for success with our New Year’s resolutions?
Financial Goals
Of course, the first thing on most people’s resolution list is to handle their money better. But what does that mean, exactly? Save more than we did last year? Spend the same amount, just on different stuff? Figure out what the next big idea is and throw all of our money into that investment? In today’s economy, it only makes sense that we should be doing a combination of all of these. Here’s a good place to start: Save 10%, Give 10% away, and Live on the remaining 80%.
Steps to Success!
Save
While you may not agree with me on the percentage, it’s fair to say that we all know we should be saving more than we are. We live in prosperous times, yet our collective savings percentage rate has never been lower. How do we turn that around in the new year? Here are a couple of ideas:
- Set measurable goals. If you can’t measure it, how are you going to know whether you are meeting it or not? Be specific! “I am going to save more” just won’t work! How much more? Over what period of time? Why are you saving? Answering these questions in advance will make your success much easier to measure.
- Set achievable goals. Everybody wants to be a millionaire, but very few people actually achieve that goal. Why not? Because they didn’t have a realistic plan on how they were going to achieve their stated goal. Financially successful people not only dream big, they take steps to make their dreams achievable. So dream big, but think about what will have to change before you can reach those dreams.
- Start. Sounds easy enough! Just do it. If you don’t take the first step, I can guarantee that you won’t achieve your goal. Met goals don’t just fall into your lap; they require planning AND action. Even if your first step is small, TAKE IT! Then celebrate it! Your journey has begun. Your ability to succeed is directly related to the speed and focus of your steps. Is saving 10% of your income too big of a goal to start? How about starting with 5%? How much is that every paycheck? Where will you put it? It’s ok to start small as long as you don’t stay there! So let’s go!
Give
Most people aren’t going to have an issue with Save. But the next suggestion is to GIVE MONEY AWAY? That makes no sense at all. You worked hard for what you have, no matter how much that is. Yes, I’m telling you to give some of it away! Find a cause you are passionate about, and support it financially. Whether that’s through a religious organization, a community based group, international relief…the list goes on and on. Just think what would happen if we as a nation collectively decided that we were going to be generous towards others without the government forcing us to. If we invested in our neighbors by giving some of our money and time, what would that do for us as people? Maybe it would smooth over some of the wounds of the past? Just maybe it would act as a catalyst for conversation as we worked side by side towards a common goal with people whose opinions we may not endorse or share.
It’s very easy to make everything we do about us – for our benefit. It’s hard not to want that new car or to get that latest new piece of technology that we want. And, don’t get me wrong, there is nothing wrong with a good dose of ambition and drive to make our lives better tomorrow than they are today. My point is this – Is it possible that part of improving our own lives may include speaking into the lives of others? Is it possible that taking our eyes off of our next purchase to focus on helping someone feed their family for the next week or keep the electricity on for another month could help us be a better version of ourselves than we are right now? Just think about it as you make your goals for the next year. Need some help deciding on an organization that will be wise with your donation? Look them up on www.charitywatch.org and take a look at how the top organizations are run!
Live
There is no coincidence that I put this one last. If you will prioritize the first two, this becomes much easier. You’ve set some clear and achievable goals. You’ve put the needs of someone else above the luxuries in your own life. Now, all that’s left is to Live. You can wake up every day knowing that you have a plan and you are working that plan AND that you are helping others get to a point where they can look up and find that they, too, are in a position where they can catch their breath for a moment and dream. Maybe, by prioritizing things this way, you will be better able to focus on your goals for the new year and crush them!
So, as we lead up to the new year and all of the fresh opportunities it brings, start thinking now about what changes you’d like to see in your life. I challenge you to pick one or two that will impact somebody else instead of making the year only about you. Next time, we’ll talk about some of the other areas we should think about for a fresh start.
Wishing you all a Merry Christmas and Happy New Year!