How to Set Good Financial Resolutions

How to Set Good Financial Resolutions

Thursday, 26 November 2020 01:50

It has been one of the most challenging years in recent memory for residents of Wilkes County, North Carolina. We have endured the effects of a global pandemic, which has brought its share of financial difficulties to our region. Many parents have been juggling working remotely with helping children navigate learning from home. Generally speaking, this has been a year that many in North Wilkesboro and Wilkesboro are ready to put behind them. As we approach January 1st and the promise of a new year, people are putting together their New Year’s resolution list. We want to help you make financial resolutions that you can keep.

In this article, we are providing a few key tips for setting your financial goals for the new year.

How to Set Good New Year's Resolutions

Unfortunately, most Americans fail to achieve their New Year’s resolutions. In fact, only 8% say they actually check the boxes on their New Year’s list. One of the ways you can help yourself keep your resolutions is by setting smart goals. Smart is an acronym that stands for Smart, Measurable, Achievable, Relevant, and Time-bound.

  • Specific: Resolutions are often too vague. Rather than setting a goal to simply reduce debt, make it more specific. Resolve to close out a specific account or accounts.
  • Measurable: Make sure you can measure your progress. Set goals to reduce your debt or save a certain amount of money each month.
  • Achievable: If your goals are out of reach, you may become discouraged. Make sure your financial goals are attainable. 
  • Relevant: Resolving to “read more” is great but might not be relevant to your self-improvement. Set goals to read books specific to what you enjoy, or on those things you want to improve.
  • Time-bound: Without putting your goals on a calendar, the chances of not following through will increase as the year wears on. Make sure your financial resolutions are time-bound. 

How to set smart financial goals:

Tackle debt like a snowball. Elkin receives about 9 inches of snow each year. And when you’re building a snowman, you start with a tiny clump of packed snow and begin rolling it until it becomes a fairly large ball. The more you roll it and the ball increases in size, the easier it is for it to grow. If you rode that ball off the hill it would gradually pick-up speed and increase in size until it reached the bottom. If you have debt, it likely snowballed, starting at something small and insignificant in the beginning and becoming something large and out of control. It’s time for you to push back. 

  • Start by tackling debt a little at a time. Identify the debts you can pay off quickly and set specific goals to pay them. 
  • Measure your goals by keeping track of what you have paid each month and what needs attention. 
  • Do not simply say you will be debt-free in a year if there is not a clear path toward that end. Make sure your debt goals are achievable and realistic, while still being something that will stretch you.
  • Your financial goals are relevant to your family's future. Once you have tackled debt, you can keep the momentum going by saving and preparing for your family's financial future. 
  • Find out what you can pay off and settle for lower amounts. Make those monthly payments smaller by increasing what you pay so that the interest has a smaller impact on each month’s bill.

If setting good financial resolutions seems out of the question, because there’s simply so much that it is insurmountable, this might be the year to consider bankruptcy. While the word bankruptcy may seem scary or bad, it might be the best financial decision you make in the new year. Many people have found that they can avoid losing their property by consolidating debt through various types of bankruptcies. Before you throw in the financial towel, find a professional who can help walk you through the process.

Attorney Robert P Laney has helped many Wilkes County residents find debt relief through bankruptcy. Our team of experts is here to help make sure you have all the facts you need to make the decision that is best for you and your family. If you’re ready to discuss the possibility of bankruptcy, contact attorney Robert P Laney today.