Defining your Goals
Are you thinking about re-evaluating your financial habits for the New Year? You’re not alone. New Year’s resolutions after all are a fancy, delicate way of saying you need to start making changes in your life. The changes can vary from eating habits to spending habits, but they all have one thing in common: Goal setting is the best way to plan for your future.
Goals are most effective when written down, listed and prioritized. Brainstorm your goals and write them all down. No matter how big or small, writing down your goals will make them easier to manage. Think about goals from all angles, including yourself, your family, your career, your hobbies, long vs. short term, etc. Your list of goals can be endless. These goals should then be categorized and listed in order of importance. You need to be able to decide which goals will take priority over all the others and only get to the lesser goals when the really important ones are well provided for.
Creating a Budget
Now that you know what you want to accomplish, it’s time to look at your current income and expenses. First, you need to make sure your expenses do not surpass your income. Take a look at old bank statements or see if your bank has an online budgeting tool. Categorize your spending and analyze your spending habits to see if you can afford your goals.
When your budget is complete, see if you can cut back any unnecessary spending you have noticed in your old bank statements. Keep in mind that just because you think you consider an expense a necessity does not truly mean it is. When budgeting for goals try dividing money for your goal into time increments to keep yourself on track.
This is where most people fail to reach their goals, they start off strong for a few weeks and get distracted. Keep your goals top of mind by either keeping your list in your wallet or pinned on your fridge or desk space. Keep revisiting your budget and make sure you’re not spending too much on things that are taking from your goals. It may help to set a target date to reach your goal by.
Even the best planners end up affected by setbacks, so don’t let them bring you down. Set a new date or find a way to catch up by making extra money on the side. You can find several ways to earn a little money when you have some free time available. You can try to sell things you don’t use anymore, take online surveys, pursue a hobby that could make you extra cash, the possibilities are endless. Make your goals a reality by making sure your money gets allocated properly this year. Budget the right way and your goals will be fulfilled quicker and easier.
About Compass Asset Management Group
Our boutique-style firm has an investment philosophy is both prudent and value driven. We combine research from the largest firms on Wall Street with three decades of market experience to provide strategic, tactical and dynamic investment management. Compass Asset Management Group, LLC delivers personalized financial planning, estate planning and investment management advice in a private setting with a high degree of sensitivity to your concerns and objectives. Our goal is to exceed yours expectations by listening closely, understanding deeply and communicating well through frequent, personal consultations entirely focused on your financial goals.
Make the right choice with your financial future. Consult Compass Asset Management Group for advice & guidance that will change your life. Plan better to live better…Call Compass Asset Management Group.
Please note that the content of this blog does not constitute tax advice and is only intended for the educational purpose of the reader. Please consult your tax advisor for specifics regarding your circumstances.
For more information contact us at 845.563.0537 or Contact@CompassAMG.com
Steven M DiGregorio is President of Compass Asset Management Group, LLC and an Investment Advisor Representative with Spire Wealth Management, LLC a Federally Registered Investment Advisory Firm. Securities offered through an affiliated company Spire Securities, LLC a Registered Broker/Dealer and member FINRA/SIPC.
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