Setting Your Financial Goals Should Be About Consistent Progress, Not Instant Gains

It’s that time of year again when everyone is thinking of a fresh start. The zeal to set new goals and write down resolutions is very high. Expectations are rife with the desire to be better than our old selves. Are you part of the clean slate gang? Sometimes we wish to wipe off our financial problems with a magic wand and move ahead in the year with no strings attached. Just take a deep breath and ask yourself whether there is any such magic that can offset your mortgage, car loans, insurance fees, and other debts. Most people forget that their current situation will not just vanish because it’s a new year. Setting and achieving financial goals is a strategic process that requires focus, discipline, and dedication. It’s a process, not an event. This article provides a few tips on setting simple financial goals that will ultimately help us to achieve more this year. The focus is on consistent progress, not instant gains. Follow these four simple steps to set simple but achievable financial goals in 2023.

Be realistic.

To make progress with your finances, start by setting realistic goals. People usually set unrealistic goals at the beginning of the year with high expectations. When these expectations are not fulfilled in the first few months, they shake off their mojo and go back to the old ways. Setting goals or resolutions is not the problem. What most people get wrong is the fact that they set goals, giving no thought to their present situation and priorities. That notwithstanding, we shouldn’t be deterred from setting new-year goals. We need to approach goal setting with a strategic mindset, draw a roadmap, take actionable steps, and celebrate milestones.
One concept that has become popular in today’s business world is the Japanese concept of Kaizen. Kaizen is the Japanese concept of continuous improvement. The idea behind Kaizen is continuous improvement; the resolve to always seek to make small changes in all areas of life for considerable improvements and impact over time. This can be applied to our personal lives to help us in making consistent progress in achieving our goals. Remember, the focus is on consistent progress, not instant gains.

Visualize what you want to achieve.

Financial goals may either be about budgeting, spending, saving, earning, or investing. Every individual has specific financial needs which are dependent on a variety of reasons. To begin your financial goal-setting journey, you must first conduct a situational analysis to see where you are currently.
Define what financial success looks like to you. Is it about paying off your debt? Saving or raising a certain amount? Planning for early retirement? or investing in things that will generate results?
Once you know what financial success means to you, you can start setting goals that will help you get there. You must be able to visualize what you want to achieve and devise strategies with a system of measurement to evaluate progress. Note that it takes time, energy, discipline, and focus to achieve financial goals. Write down your goals, reflect on them and break them down into tasks with timeframes and action steps. Constantly track your progress to help you in adjusting your plans where necessary.

Learn to Prioritize.

Prioritization is key to achieving your goals. Without prioritization, you might waste time on less important tasks and by the time you want to start on your most important assignments, you will be exhausted. You can use the priority matrix to assign and evaluate tasks. Be clear on what is urgent and focus on achieving that within a specific time frame. Use your time efficiently to avoid distractions and procrastinating key tasks.

You don’t have to be perfect.

Vince Lombardi once said, “Perfection is not attainable, but if we chase perfection, we can catch excellence”. It is good to seek perfection in all spheres of life. However, don’t worry when things take a detour, learn to be flexible, adjust, and re-strategize. One thing about achieving our goals is the tendency to get frustrated when things don’t go as planned. If we appreciate the little steps and celebrate milestones, we will be less stressed and anxious over things that are out of our control. Overall, failure to reach set goals shouldn’t set us back. Acknowledge your mistakes, reflect, be ready to grow, and implement strategies to boost performance.
To sum it up, having a financial plan could be one of your greatest achievements in 2023. Don’t wait for tomorrow. Set simple financial goals and consistently work towards achieving your financial dreams. With the right attitude, persistent effort, and discipline, you can achieve your financial ambitions.