Making resolutions is a common practice at the start of each year. You might resolve to save more, spend less, or finally pay off debt. However, vague goals can make your financial resolutions challenging to achieve. This year, consider making SMART resolutions and set yourself up for success.
What are SMART financial resolutions?
SMART financial resolutions help transform broad goals into actionable steps. By clearly defining your financial goals, you’re more likely to stay motivated, track progress, and achieve real results.
SMART financial resolutions are:
- Specific: Clearly define what you want to achieve.
- Measurable: Include concrete numbers or targets to track progress.
- Achievable: Set realistic goals considering your current financial situation.
- Relevant: Ensure your resolutions align with your broader financial goals.
- Time-bound: Set deadlines to keep you accountable.
SMART examples for common financial resolutions
Paying off debt
Instead of resolving to “get out of debt,” make your financial resolutions SMART. For example, commit to paying off $3,000 of credit card debt within 6 months by paying $500 per month. This specific goal helps you stay focused and clearly measure your progress.
Pro tip: Use tools like the Best Egg Debt Manager to simplify your debt repayment journey and stay motivated.
Increasing savings
Rather than vaguely planning to “save more money,” set a SMART goal to save $1,200 this year by depositing $100 into a savings account each month. This measurable goal allows you to track your savings growth easily, making your resolutions attainable.
Pro tip: Consider opening a high-yield savings account to maximize your savings further.
Improving your credit score
Instead of a vague goal like “increase my credit score,” aim to raise your score by 50 points over the next 12 months. Paying bills on time, reducing your credit utilization, and regularly monitoring your credit can make this achievable.
Pro tip: Explore Best Egg’s Credit Manager to track your progress and understand the factors influencing your credit score.
Track your SMART financial resolutions
Regularly monitoring your progress is a key part of keeping your financial resolutions on track. Schedule monthly check-ins to review your goals. Adjust your budget and spending habits if needed and celebrate small victories along the way.
Pro tip: Remember, consistent monitoring could convert your resolutions from ambitions into accomplishments.
Prepare for setbacks
It’s natural to experience setbacks when pursuing financial resolutions. Don’t let minor missteps discourage you. Instead, view them as opportunities to reassess and improve your strategies. Resilience is essential to reaching your financial goals, and overcoming obstacles should be thought of learning opportunities.
Celebrate your achievements
Acknowledging progress is essential to staying motivated. Celebrate your achievements—big or small—as you move forward with your SMART financial resolutions. Recognizing your successes helps maintain motivation and encourages continued financial growth. Commit to your financial resolutions
Making SMART financial resolutions could be the beginning of a brighter new year. Making specific, measurable, achievable, relevant, and time-bound goals will help you confidently navigate your finances. While it may not be easy at first, you can do it. Remember, you’re not in this alone. We’re here to support you every step of the way
This article is for educational purposes only and is not intended to provide financial, tax or legal advice. You should consult a professional for specific advice. Best Egg is not responsible for the information contained in third-party sites cited or hyperlinked in this article. Best Egg is not responsible for, and does not provide or endorse third party products, services or other third-party content.
