Goal Setting for the New Year

Soooo… What are you going to do different this year, than you did last year?  If you’re like the majority of people, every year you make resolutions that you never resolve, right? Join me by yelling at the top of your lungs, NOT THIS YEAR!  This year will be different, this year; you will achieve your financial goals!  But the question is HOW?  First, write them down and second, revisit them daily, weekly and monthly.  We all know the age-old adage, “That which gets measured, gets done.” 

1. Define the Goal
2. Make it Realistic
3. Execute

DEFINE your actual GOAL?  And no, it can’t just be “I want to buy a house”.  Is your credit score up to par, do you have money saved, have you applied with a mortgage professional, and finally, how much house can you comfortably afford?  These are the questions you have to ask yourself.  Always ask yourself the TOUGH QUESTIONS.

Make it REALISTIC.  One of the biggest pitfalls of goal setting is planning goals that you’ll never be able to achieve.  The most common New Year’s resolutions from my clients and friends…  I’m going to lose weight and/or save more money.  The next questions are… how much weight and how much money?  If you’ve never saved any money, don’t expect to save half of your yearly income in one year. Start with small increments and work your way up.  A great rule of thumb is to try and save 10 percent of what you bring home after all taxes and deductions, also known as your net income.  To get started work on 5 percent.  Heck, start with $100 a month, whatever it takes, just get started!

Lastly, EXECUTE!  Quit putting off until tomorrow what you can start today. The first step is to cut your expenses.  Review all 12 months of your 2017 bank and credit card statements. Find out where your money actually goes. You may be surprised to see how much money is spent on ATM fees to access your money. Use the ATM at your bank.  A few suggestions: limit your eating out, unnecessary cable channels, limit monthly subscriptions and memberships that you rarely use.  Go to the library instead of buying books for leisure reading (how often do you actually re-read a book)?  Pack a lunch a few days a week, make coffee at home or work instead of daily Starbucks. Instead of nightly movies every weekend, try some matinees.  Lastly, buy in bulk for toiletries, dry goods and items you have to buy regularly. 

Now to start saving the extra money you just discovered, open an interest-bearing account specifically for your savings.  I recommend that you do not link the account to your daily account nor have an ATM card.  I would even go so far as to suggest a completely different financial institution. The reason for the separation is to curb your temptations.  How hard is it to lose weight if you have a refrigerator full of ice cream and cabinet full of cookies, pretty hard, huh?  So don’t temp yourself.  Good luck and Happy New YOU!

Alicia Taylor is a licensed Mortgage Banker and Real Estate broker with over twenty five years in the finance and lending industry.  If you are looking to purchase, refinance or sell your current property. Please all Mortgage Solutions, LLC 702-368-0059.