Financial Goals for 2023
Are you looking to get your finances organised and smash your financial goals in 2023?
Well, look no further! Making sure you have attainable and fulfilling financial goals is the way to do it.
Every year we all try to make positive resolutions that we can stick to, and make us feel fulfilled. So if you haven't considered it already, making a resolution to end 2023 in a more stable financial position than you started is a pretty good one to have.
In the cost-of-living crisis, it's now more important than ever for individuals and households to have a stable and secure income to buy the essentials, stay warm, and have fun without feeling guilty. At JN Bank UK, we've put this guide together to help support you with your new resolutions and set up goals that you can smash this year.
Setting goals for the year ahead is a great way to kick off 2023 - it gets you excited for things to come, you have targets you want to reach, and by hitting your goals you give yourself a motivational boost all throughout the year!
Written by Harvey Perry
JN Bank UK Digital Marketing Executive
Goals are instinctive to human behaviour, and they are important to helping us envision our next steps and to visualise what it is we want to achieve in the future. Goal setting helps us achieve the things we want and adds a sense of accomplishment to our life that constantly boosts the reward centre of our brain (the mesocorticolimbic circuit - to get technical). It can of course be difficult to plan your future when you are worried about How To Manage Debt, bills you need to pay, deadlines you need to make, or anything else you need to do in the short term.
Financial planning and getting Financially Fit for 2023 is something everyone needs to do to make sure their future self and finances are on track. When all of your accomplishments come together, you will have a renewed sense of achievement, have ticked off all your financial goals, and hopefully end the year in a more financially stable position. Everyone knows savings is important but not enough people know how to effectively and routinely save. Combining your finances with a list of targets to reach throughout the year is a great way to hold yourself accountable and make saving exciting (as exciting as numbers and money can be!).
Spacing your financial goals throughout the year is a really important thing to do because if you space them too close together you could feel overwhelmed by them, but too far apart you may forget about them and you may feel your motivation start to dwindle. Your short-term goals could be things like creating a personal or household budget, speaking with debt advice charities such as Stepchange about your situation, or even starting a little savings nest egg that can go towards your holiday.
The long-term goals you set are the ones that will need a bit of time to accomplish such as, saving X amount in your bank account, or have saved X amount by the end of the year, or even being able to put in a deposit for your dream property in 5-10 years' time. There is no limit on your short and long-term goals but having them visualised on a timeline is the best way to make sure you will stick to them – and so the deadlines don’t sneak up on you.
Speaking of deadlines, having a target date for your goals is important to envision a time in the future when you will have accomplished them. Having an idea of how much time you have left to achieve your goal will also help maintain an appropriate amount of pressure to get the task complete, but it will also mean you know how long to go until you can celebrate and reflect on the progress you have made!
Setting a goal with an end in sight keeps you motivated to achieve the goal, rather than casually checking your timeline only to realise you have missed two of your goals and completed several without realising. Keeping a healthy amount of pressure on is the key difference between being serious about your financial fitness and delaying your goals into 2024 and beyond.
Chances are your long-term goals are also your top priority like saving large amounts of money or having your debts paid off. Prioritising your financial goals will help you develop an order to your plans so that you don’t get to the end of the year with only a few days left to complete your most important objectives. Weighing up your short-term goals such as having a rainy-day fund against your long-term goals like paying off all your debts will help you understand a comfortable order of priority.
Like your mix of short and long-term goals, it’s good to also have a prioritised list where short and long-term goals are mixed. A high priority short term goal will give you a sense of achievement immediately, but a low priority long term goal gives you the breathing space to work on it over the year. It’s ultimately up to you what you will place and where you will place them on your list.
Now you know what you want to save, when you want to have saved by, and you’re comfortable with the priority of your list – it's now time to start smashing those Financial Goals!
Even if it takes more than you expected to accomplish some of your goals, give yourself the breathing room to revaluate how much time you need to accomplish your goals, and set a new deadline. We wouldn't be human if we set goals and accomplished them all, and what’s important is to give yourself a break and not be discouraged or turned away from your 2023 financial fitness plan by falling at the hurdle. Consider this your kickstart towards completing your financial goals. This is your year to get Financially Fit!
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