Are you ready to make 2025 the year that you take steps to improve your financial security? The start of the year is the perfect time to reflect on your fiscal health and set a goal to take you to the next level.
Setting a goal is easy—but seeing it through can be a challenge—so check out these seven steps to set a financial goal and stick with it all year long.
1. List Out All Your Financial Goals
Grab a cup of coffee, some paper and a pencil, and sit down for a brainstorming session.
Think about the financial goals you’d like to achieve and write them down—all of them. No matter how grand or trivial they seem, write them down. Review your income, expenses, savings and debt to understand your current financial situation and identify areas of improvement.
Your list may include goals like getting out of credit card debt, building an emergency fund, saving up for a purchase, finding a financial advisor or saving more for retirement.
Guaranteed Acceptance Life Insurance
Coverage options starting at $9.95 a month!
Guaranteed acceptance life insurance without medical exams, health questions, or rate increases.
2. Prioritize Your List from Most to Least Important
Now that you have a list of all your goals, prioritize them from most important to least. For example, getting out of debt and building emergency savings are typically considered to be top financial priorities, while saving up for a discretionary purchase may be lower on the list.
3. Decide Which Goal to Focus On
With your goals prioritized, you can now choose which financial goal you want to focus on in 2025. Keep in mind the SMART goals acronym as you decide. SMART goals are:
- Specific: What exactly do you want?
- Measurable: How will you measure your progress?
- Achievable: Is your goal realistic?
- Relevant: Does your goal align with your circumstances?
- Time-bound: Are you able to set a deadline that pushes you to act?
4. Make a Plan
Now that you have a goal in mind, it’s time to break it down into small, actionable steps. For example, if you want to save $2,000 in an emergency fund by the end of the year, your smaller steps may include:
- Step 1: Review your budget to find savings opportunities.
- Step 2: Consider ways to earn extra money.
- Step 3: Set up a savings account.
- Step 4: Set up direct deposit from your paycheck or an automatic transfer from your checking account.
- Step 5: Save $167 per month.
5. Track Your Progress
Tracking the progress of your goal will help you stay motivated, accountable, and adjust if necessary. Whether it’s weekly, monthly or quarterly, schedule times to review and track your progress. You may decide to track this in a journal, spreadsheet or using an app.
While tracking your progress, consider if there are any obstacles or habits that are hindering your success.
6. Recalibrate if Needed
Life happens, and sometimes a curveball may cause you to get behind on your goal. That’s okay. Simply revise your plan to get back on track. For example, you may decide to increase your monthly savings deposit from $167 to $200 to make up for an unexpected expense.
7. Be Proud of Your Success
You’ll be more motivated when you recognize and celebrate each reached milestone. Reward yourself in affordable but meaningful ways and celebrate with the people who support your journey. Use your positive momentum to focus on the next milestone.
By following these seven steps, you may find it easier to achieve your goal and level up your financial security in 2025!
Want more? Check out our blog, 5 Ways to Pay Your Future Self
Colonial Penn is here for you!
Colonial Penn has specialized in making life insurance simple and accessible by offering it directly to consumers since 1957. Click here to learn more.
