Five steps to achieving your financial goals in 2021

When it comes to new year’s resolutions, many of us find it difficult to stick to them. If you are among those for who find it hard to stay on track with your financial resolutions, an idea is to follow a few easy steps to find your resolve. Here, we take a look at some simple tips to turn your financial goals into reality.

Setting achievable goals is the first step to keeping them. For instance, you may want to save $25,000 this year. But if this is only going to be possible if you scrimp and save and deny yourself life’s pleasures, chances are you won’t reach your goal. Instead, why not set a more realistic goal such as saving $5,000 or $10,000? That way you can live your life to the fullest and also create a tidy pot of savings.

Breaking down your goals is another way to make them happen. Using the example above, let’s say you set a goal to save $10,000 in 2021. This might seem insurmountable right now, but if you break it down by month, you can see you only need to save $850 each month. That seems much more achievable than a big, lump sum.

Another great way to motivate yourself to stick to your goals is to mark your wins. Let’s say you have successfully saved $2,500 by the end of March. Give yourself a treat to celebrate. This might be going to dinner, seeing a movie, or taking a day off work. Choose something that will spur you on to keep your eye on the end game.

It’s really important to make it simple to achieve your goals. If your goal is to save up money, it’s a good idea to set up a separate savings account and put in place a direct debit to automatically add funds to the account each month. That way you don’t even have to think about whether you are meeting your goals – it will happen automatically. Try to find an account that pays extra interest if you don’t withdraw from it for a certain period.

If your goal on the other hand is to pay off your debts, then try finding a personal loan that can help you consolidate your debts. Consolidating several debts into one account makes it easier and more efficient to pay off all of your debts. Plus, you may get a lower interest rate, saving you money in the long run. If you only have one debt to pay off, then consider switching to a different lender that offers a lower interest rate. You can find these offers by logging into your ClearScore account.

Don’t be discouraged if you don’t meet your goals. If you miss a month, just start again next month. That’s the best way to stay on track with your financial goals this year and beyond.