2020 promises to be big–new year, new decade, and new goals. If you’re eager to step up your finances, now is the perfect time to get going on your money goals and financial resolutions. Here’s how to make it happen.
1. Get Clear on Your Goals
Before you even begin to strategize, you’ll want to write down your goals–not just for 2020, but for the years to come. Are you planning to buy a home? Do you want to book international travel in the coming year? When setting your goals, remember to make them S.M.A.R.T.–Specific. Measurable. Achievable. Relevant. Timebound.
Instead of saying, “I am going to save money for a trip to Europe,” a better way to set up this goal is to say “I am saving $75 each month starting in January 2020 so I can pay for my flight to Europe in the fall.” See the difference?
2. Start Strong With a Budget
Budgeting can be intimidating, especially if you’ve failed at it in the past. However, there is no tool more powerful than a budget in helping you to know your true financial position. If you’re a beginner, a simple pen and paper will do the trick.
Sticking with a budget can be tough and it does require some discipline. If you are struggling to stick to your financial resolutions, find an accountability partner and schedule a monthly meeting with that person to ensure that you’re both tracking towards your financial goals.
3. Make a Plan to Knock Out Debt
Don’t let debt knock you out in 2020. Debt can serve a meaningful role in your financial strategy; however, much wisdom and careful planning is needed. If you’re purchasing a home and need a home loan, you’ll likely gain more traction towards your long-term goals from that type of debt than you would from say, consumer debt.
Do everything you can to pay off credit card debt including having a plan and a simple, written debt-paydown schedule to help you stick to it.
4. Be Prepared for Surprises
Life always presents unique twists and turns, some of which can be thrilling, like a new baby, and others, downright devastating. To really maintain a consistent flow to life, you can set up systems around you that will protect you in incidents such as a health or natural disaster crisis. Ensure that you’re signed up for adequate health insurance coverage, and if you have dependents, consider life insurance.
An emergency fund is an essential part of any financial strategy to weather unexpected life events. As you start the year, make it one of your financial resolutions to commit to putting aside a healthy amount towards your emergency fund which experts recommend should be anywhere from a month to six months’ worth of your living expenses.
As you go through 2020, be kind to yourself if you stumble along the way. The key is to remain persistent and you’ll be well on your way to achieving your money goals–and life goals. You got this!
Have a question about your financial resolutions? Ask in the comments–and shop budget-friendly buys here!
Bola Sokunbi, founder of Clever Girl Finance, is a Certified Financial Education Instructor, money expert, CEO, and best-selling author. Sokunbi aims to help women like you take charge of your finances, stop living paycheck to paycheck, build real wealth, and get you in control of the life you really want to live.
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Thanks for the interesting article. For me, the surprise was the isolation of covid and out of work. At first I thought it was a temporary situation. But it took a while. and I’ve been looking for work for months. On the way to financial stability, first of all we need a goal – it is a stable work with decent pay