It’s that time of year again, the time we conduct a self evaluation of ourselves and circumstances and see what areas we want to improve. We like to refer to them as resolutions even though we should call them and, more importantly, treat them as goals. Regardless of your choice of terms, this year happens to have even more significance. “Why?” you might ask. Well, not only do we close out 2009 and enter into the New Year but we also start the next decade of our lives as well. So, what financial resolutions do you have in store for this coming year and decade?
I know trying to forecast 10 years out is pretty difficult considering the last ten years we just experienced. We’ve dealt with the Y2K scare, then 9/11, two wars, the tech bubble, the real estate bubble, and the Wall Street bubble. As grim as all of that sounds, we’re still here and are pushing through. It’s not been easy and probably won’t be any easier going forward but how did you progress during that timeframe. Are you in a better financial position now than when you started? If so, what were some of the things that helped you improve your situation. Try and look back to see what things you could have done better such as household budgeting, saving more, or spending less. This exercise is not meant for you to go back and beat yourself up, it’s more for you to learn from your past decisions in case you experience the same type of challenges going forward.
With that said, what should you be doing right now to get ready for all of the positive change you want to experience in the New Year and beyond? First, write down your financial resolutions and make them public with someone that can help you stay on track. This could be a spouse or even your peers. You should also include your financial advisor on any goals you have going forward. If you don’t have a financial advisor, it’s time to find one.
Second, make your resolutions realistic. Sometimes we make our goals so big that we get easily discouraged when we don’t see the progress we were hoping for. Hope, coincidently, can be detrimental to the success of your resolutions. Most of your goals are going to take massive action on your behalf to come to fruition. Resting on hope alone can sabotage your success.
Lastly, make your resolutions measureable. Nothing will kill a resolution faster than a half hearted attempt to accomplish something. Your resolutions have to be descriptive and clear as to what you are trying to accomplish. Break them down into stages so you can easily see your progress. This will help you stay focused towards the end result you’re looking for.
