Have you set yourself some financial resolutions for 2021?
2020 was a testing year for so many Australians, mentally, physically, emotionally and financially. The effects of COVID-19 restrictions meant that many were impacted financially, through job loss or reduced work. With a cloud of uncertainty, many people were anxious about their finances in one way or another.
Now that we are regaining confidence in Australia, setting financial resolutions is the perfect way to help you get on track with your goals, whatever they may be. So how can you set resolutions that will stick?
Examples of financial resolutions
Setting financial resolutions can incorporate several different elements such as earning more, spending less, saving more money, paying off debt or donating more to a certain charity. If your resolution is to save more, you should set yourself a tangible goal e.g. save $10K by the end of 2021. Having an outcome in place will help you stay on track throughout the year.
Making sure your financial resolutions stick
How many times have you set yourself a resolution that you don’t achieve? There are many reasons why you might not achieve your goals including mindset, time management or because you have set yourself unrealistic intentions.
By setting SMART goals, you are setting yourself up with a better chance of success.
S – Specific. What goal do you want to achieve and why?
M – Measurable. How will you track your progress?
A – Assignable. What do you and others need to do to achieve this?
R – Realistic. Is it achievable given your current resources?
T – Time-based. When will you expect to achieve this goal?
Taking action
Once you have set your financial goals, you also need to create strategies that help you to reach these goals. For example, if your goal is to save $10K in 2021, you need to think about what you need to do to achieve this goal. You might choose to open a term investment, reduce your expenditures or even create a new source of income. These strategies will give you the direction you need to make sure that you are on track to meet your financial resolutions, especially when you put a timeline in place for you to monitor throughout the year.
Get in touch with the team at APS Benefits to learn more about staying on top of your money in 2021. No matter what your resolutions are, we are here to help you every step of the way with a broad range of services including loans, term investments and much more.