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Here’s how to get yourself on track.
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Many of us made New Year’s resolutions going into 2023. And many of us are no doubt already falling behind.
Of course, it’s pretty easy to see why some financial resolutions may be hard to uphold. Inflation has continued to surge this year, and the cost of many essential expenses, like food, remains elevated. And it’s hard to keep up with goals like building savings or paying off credit cards when you’re forced to spend more money just to function.
If you’re frustrated with the fact that you’re behind on your New Year’s resolutions, don’t give up. Instead, take this great advice from financial guru Suze Orman.
Focus on one thing
Orman is all about empowering people to better themselves financially. And to that end, in a recent blog post, she talked about the importance of focusing on one financial goal at a time.
“Don’t spread yourself thin here,” she said. “I understand you may have multiple financial goals you’d love to tackle. But I think when you try to do so much all at once, it can often lead to goal burnout.”
Orman is spot-on. When you start to get down on yourself, you can lose motivation to keep pushing. So rather than get into a defeatist mindset, tell yourself you’re going to work on tackling a single goal, whether it’s saving up to buy a home or paying off the personal loan you’re eager to get rid of.
How to choose which goal to focus on
Maybe you have several financial goals you’re hoping to tackle in 2023. If you’re not sure how to prioritize them, Orman has some advice there, too. She says, “Take a minute to think about the one financial achievement that would make you feel great.”
So, let’s say it’s really important to you to have a solid emergency fund. If building up enough savings to cover six months of essential expenses would make you feel good about yourself and also help you sleep better at night, then you may want to make that the goal you prioritize. And once you’ve achieved it, you can move on to other goals.
Any time you’re overwhelmed by a long list of tasks, you run the risk of setting yourself up for failure. Tackling goals one at a time is often a better approach, whether you’re talking about New Year’s resolutions, assignments at work, or projects that need to get done around the house.
Remember, achieving financial goals isn’t easy. So give yourself credit for trying to better your financial picture — even if you still have a ways to go until you’re where you want to be.
Are your goals realistic?
It’s a good idea to focus on a single goal rather than attempt to tackle multiple goals at once. But also, make certain each goal you set is realistic.
If you have $600 in your savings account, building a $25,000 emergency fund in a single year may not be doable, even if you’re willing to work some side gigs to boost your income. But hitting $10,000 in savings may be more reasonable given your earnings and starting point.
So as you go about the process of prioritizing your goals, make sure they’re actually attainable. And if not, make some adjustments so you don’t set yourself up for nothing but frustration.
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