Goal setting for an uncertain new year and beyond
Looking ahead to next year might seem daunting but the following tips can help you focus on making robust, achievable plans
The only thing we can be certain of as we look ahead to the new year is uncertainty. But that doesn’t mean you shouldn’t set goals for both your financial and emotional well-being. Everything can change and evolve around you, but typically your big goals will remain unchanged. And it’s important to remember that you can still achieve your goals despite the unknowns. With a well thought out plan and a positive outlook, you can take the required steps towards making those goals become a reality.
Back to basics
When it comes to your financial health, there are three fundamental golden rules to remember as we look ahead to next year:
- Look closely at your cash flow and do everything possible to make sure you have more money coming in than going out. Hold yourself accountable for your expenditure and if you need to balance what you spend with what you’re earning then make sure you take action to remedy the numbers.
- Make sure you have an emergency fund. In ‘normal times’ we always recommended having savings to cover 3-6 months of your living expenses (mortgage or rent, bills etc) but given the current circumstances, boosting that to nine months for an extra safety net is a great idea if possible.
- Consider a second income stream. The last 12 months have taught us that nothing is guaranteed, so in 2021 you should think about securing another source of income if at all possible, to mitigate risk and, again, give yourself a financial cushion.
Be flexible if required
It makes sense to be a bit more flexible with your goals and review them more often during uncertain times. However, most people won’t need to change their financial goals. If you have built a long-term financial plan, you do so in the knowledge that the road won’t always be smooth. To put your mind at ease and continue to review your plan, together we can set quarterly meetings to assess your situation and agree the steps you can take to adapt your plan. If you’re financially sound, your focus and the planning decisions you make will depend a lot on your age and personal circumstances.
Choose your own goals
Break your goals into bite-sized chunks. Give yourself daily, weekly and monthly steps to achieve those goals and focus on them. Putting them down on paper will help you achieve your goals. By writing them out, you create a simple target at which to aim because you can literally see your thoughts. When you accomplish one, move on and tackle the next one. And when it comes to setting goals, make sure they’re yours alone – trying to achieve something is much harder if you’re really doing it because somebody else wants you to. You need to be determined to accomplish these goals for yourself.
