When the new year hits it can be tempting to make BIG promises about our financial forecast for the upcoming year. Don’t get us wrong, we’re all about dreaming big and we don’t doubt that you could all conquer these big financial goals. But for many of us, super-ambitious goal-setting can lead to disappointment. It’s all about how we frame it. Let’s take a look at how you can re-frame those ambitious financial goals for the new year.
An example of an ambitious goal that can be re-framed is, say you want to buy a house this year. That’s a great (and very ambitious) goal. Imagine you successfully set aside money for your down payment for 8 out of the next 12 months. But those 4 months off mean you can’t afford the house yet. Did you fail your goal? Nope. Because you’re 8 months closer than you used to be, and that’s worth celebrating.
Here are some goals we've re-framed to give you inspiration for how you can avoid getting down in the dumps about some big plans ahead:
1. An ambitious goal you might have is to pay off all your debt by the end of the year. Whilst this might be attainable, instead, you could re-frame that goal by aiming to pay off high-interest debt using smart repayments (*cough* Incredible *cough*)
2. Wanting to completely fix your deep-rooted financial anxiety by the end of the year is a great idea, yet it can be extremely difficult due to its immeasurable nature. Instead, you could work on having more transparent conversations around money with friends, family and partners as this is a more measurable goal that will have an extremely positive effect on not only your finances but your relationships too.
3. Some people want to suddenly ditch their 9-5 jobs to pursue their passions and whilst this might seem appealing to do in the spur of the moment,, an alternative is to assess your financial planning to see when you can comfortably take the leap. This enables you to ensure you have a hefty financial buffer to rely on if necessary
4. As the years go on, assets such as cars get older and newer, shinier models are released. Instead of buying a new car within 6 months, you could devise a plan for how you’ll comfortably set aside money into a sinking fund. Celebrate the months you’re able to save and go easy on yourself if there are months you can’t.