School is out, summer is here, and we’re at the halfway point of the year. Now is the perfect time to sit down and review where you stand on your goals for the year. Are you where you hoped you’d be? Or do you need to jumpstart your efforts and ambition?
Keeping up with goals, especially financial ones, is challenging because they require time and energy – two things that are always in limited supply. While abandoning your goals might be easier, achieving them can lay the foundation for future financial success and security.
In this article, we’ll help you get back on track with your goals and regain your motivation to succeed.
Part #1: Where Do You Currently Stand?
The hardest part of assessing your goals is admitting you might not be as far along as you hoped to be. Don’t let that stop you from moving forward. Remember, it’s not about perfection – it’s about making progress.
In this section, you’ll identify where you stand, note any setbacks, and create solutions to any hurdles you’ve encountered along the way.
Revisiting Your Goals
Think back to the beginning of the year when you set out to achieve specific financial goals. Maybe it was to save up for a new car, purchase your first home, build an emergency fund, or improve your credit score. Where do you currently stand?
If you had to give yourself a grade, what would you score?
A = On schedule & making great progress!
B = Solid progress but a little behind schedule.
C = Some effort, but setbacks derailed my plans.
D = Little to no effort toward goals.
F = What goals?
Don’t be too hard on yourself. Life happens. Perhaps you’ve encountered some financial setbacks, such as unexpected expenses. Or your priorities shifted altogether. Use this time to assess where you currently stand and determine whether your original goals remain important to you.
If your priorities have changed, set new goals that better align with them. For example, maybe instead of saving up for a new car, you’re planning to attend college in the fall instead.
If you want to continue with your original goals, let’s work to keep going strong or get back on track if necessary.
Identifying Obstacles
When pursuing a goal, it seems like the world is constantly working against you. Imagine you set out to lose weight and become healthier. On day three of your new routine, your friends want to go out for happy hour (it’s never just happy hour…). Or you’re swamped with work meetings and need to find something quick for lunch – fast food is calling your name.
You may have the discipline and motivation to overcome these obstacles…at first. But day after day, it feels like something new is pulling you away from your goals.
Learning to overcome hurdles begins by identifying the common culprits. Now that you’re six months into pursuing your goals, what are your greatest obstacles?
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Are you constantly facing unexpected expenses that pop up?
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Do your friends peer pressure you into spending money on fun rather than your goals?
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Does your budget provide too little room to put aside money for your savings goals?
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Did you forget about one credit card payment and undo all the progress you made toward improving your credit score?
Spend time thinking about all the things that regularly pull you from making progress toward your goals. Once you identify the common culprits, you can begin creating a game plan to overcome these challenges.
Overcoming Obstacles
The best defense against financial curveballs is being prepared for them. Now that you know what regularly sets back your progress toward your goals, you can prepare tactics to avoid them.
Using the previous questions, let’s brainstorm ways to deal with each situation in the future.
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Are you constantly facing unexpected expenses that pop up?
Maybe it isn’t that unexpected expenses keep popping up, but that your budget isn’t accurate. When creating a budget, begin by looking through several months of account and credit card statements. This strategy helps you identify recurring expenses – including those that might only hit once a quarter or every six months. Also, be sure to factor in holidays, vacations, birthdays, anniversaries, and other special events that occur only once a year.
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Do your friends peer pressure you into spending money on fun rather than your goals?
Don’t let FOMO control your life. Instead, mention to your friends that you’re trying to save money. Then, suggest an alternative that is more economical and aligns with your goals. For example, instead of going out to a nice restaurant, ask if they’d like to do a cookout at your or a friend’s house instead. You’ll likely be surprised how many of your friends are trying to pursue financial goals, too, but are afraid to speak up to the group.
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Does your budget provide too little room to put aside money for your savings goals?
If you end the month with little or no money left to put toward savings, it’s likely caused by two things.
1. Your budget isn’t as accurate as it should be (go back to the first bullet in this section for guidance).
2. You’re frivolously spending money throughout the month that should be going toward your goals. Instead of waiting until the end of the month to put money into savings, do it at the beginning. Treat your savings like any other bill – except you pay it to yourself (directly into your savings account).
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Did you forget about one credit card payment and undo all the progress you made toward improving your credit score?
Payment history makes up the largest portion of your credit score. Never miss a payment by logging all your recurring bills into your phone’s calendar and setting reminders. You can also schedule all credit cards to automatically make at least the minimum payment due monthly.
Part #2: Regaining Motivation
It’s much easier to achieve a goal when you’re excited about it and can see progress being made. Maybe that initial energy you had has fizzled out some. Rekindling that motivation is often as simple as reframing your goal.
Reframing Your Goals & Action Plans
It’s weird to think that how we word our goals (either on paper or in our minds) can impact how serious and motivated we are toward achieving them. But let’s look at some of the common problems that affect progress toward goals.
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Get Specific:
Goals such as “I want to save for a new car” or “I want to lose weight” aren’t very good motivators. When creating a goal, you want to state the goal, identify why you’re pursuing it, define how it will be achieved, and set a timeline.
Instead of “I want to save for a new car,” your goal could be:
I will save $3,600 toward a down payment on a new car that comfortably fits my entire family. I will put aside $300 each month for 12 months.
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Adjust Your Timeline:
While our calendar is divided into months and days, and it repeats annually, time isn’t circular – it’s linear. That means you shouldn’t let setbacks derail your goals. Instead, adjust your deadline.
Everyone likes to set New Year’s resolutions because it’s the beginning of a new year. However, New Year’s Day is just another day. If you face a setback or get off track, don’t give up - adjust your goal’s timeline. Instead of December 31st being your end date, make it January 31st or March 31st. It’s your goal – you’re in charge.
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Be Realistic:
Too often, goals are too ambitious. That’s not bad but failing to keep up with expected results can be disheartening and cause you to toss in the towel. If it’s not possible to save $300 a month, consider extending your timeline and aiming for $200 a month instead.
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Keep It Simple:
Have you ever set out on a weight loss journey with a super detailed schedule that included certain meals on certain days, specific workouts on specific days, and impossible restrictions like no carbs or no sugar for 12 months? How did that go?
Keep your action plan as simple as possible. If your goal is to save $300 a month, use Payroll Deductions or Automatic Transfers to put your savings plan on autopilot. Set it and forget it. And store the funds in a separate savings account that you cannot easily access to keep any temptations at bay.
Quick Tips to Stay Motivated
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Break Up Your Goals:
Instead of trying to lose 30 lbs. or save $5,000, break your goal down into bite-sized chunks. Set weekly or bi-weekly goals that allow you to see your progress. That forward movement will build excitement and keep you going.
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Celebrate Little Wins:
Take time to pat yourself on the back. Every time you lose 5 lbs. or save consistently for 4 weeks, treat yourself. That doesn’t mean eating a cheat meal or buying yourself a present – remember to celebrate while keeping your goals in mind.
We’re Here to Help!
We all have goals we want to pursue and achieve in life. As you reach the mid-year mark with your goals, take a moment to grade your progress. There is nothing wrong with reworking your goals to better align with your priorities or current financial situation. Just remember that every step forward will get you closer to where you want to be.
If you have questions about savings tools, such as payroll deduction, automatic transfers, or higher-earning accounts, we’re happy to help. Please stop by the Credit Union or call 410-687-5240 to speak with a team member today.