Financial Friday Newsletter

A new year offers an opportunity to reflect on where you’ve been and to make plans for your future goals — whatever those may be. By identifying that you don’t know where to start and seeking help, you’ve already made progress in fixing the situation. Consider these steps to get you closer to those financial goals this year.

Assess where you are: You can’t know where you’re going until you know where you’ve been. That said, the first and most important step is to evaluate where you are right now — at this moment. How much debt do you have? Do you have any money saved for an emergency?

Decide where you want to be: Take a moment to visualize where you want to be at the end of this year. What does that look like? Are you completely debt free? Do you have a healthy emergency fund? Are you working toward building wealth?

Be SMART with your goals: Once you have a realistic picture of what success looks like, it’s time to be SMART about your goals. SMART goals are:

• Specific – Know exactly what you’re aiming for.
• Measurable – Decide how you’ll track your progress.
• Achievable – Is your goal realistic? Do you have the skills you need to achieve it? If not, how can you acquire them?
• Relevant – Why is this goal important to you? How will you or others benefit in the long run?
• Time-bound – A final deadline helps to keep you on track to reach your destination, and incremental deadlines make your goal seem more attainable.

Create a spending plan, and review it regularly: Budgeting the money you have is the most important key to financial success. The amount of money doesn’t matter if you don’t have a plan in place to manage what you have. To learn how to create a budget, check out our budgeting resources at OklahomaMoneyMatters.org.

Establish an emergency fund: The unexpected happens — a car accident, a sick child, an unplanned home repair — and it can derail your financial goals FAST. If possible, it’s best to save three to six months of necessary living expenses in your emergency fund, but in the meantime aim to save at least $1,000 to cover minor bills and repairs. Put your money somewhere easily accessible, like an interest-bearing savings account or money market account.

Pay off debt: Your money can’t work for you if it’s earning interest for someone else. That’s why it’s important to pay off debts as quickly as possible. Tricks like the debt snowball method can help you prioritize and speed up your debt payoff journey. Before you know it, you’ll have more money to put toward those big goals. If you’re overwhelmed and don’t know where to start, visit nfcc.org to find a local nonprofit credit counselor who can help you figure out a plan.

Prioritize financial wellness: When creating new financial habits that bring you closer to your goals, your money mindset is as important as your goals and plans. Give yourself some grace for any mistakes you’ve made in the past and work toward actively changing the bad habits and beliefs that were keeping you stuck.

Save and invest for the future: The key to long-term financial success is to make your money work for you. Consider talking to a certified financial planner to help you access your future needs and create a plan to help you succeed. Visit plannersearch.org to find local certified financial planners who specialize in the areas you feel need improvement. When you have a few good leads, pick up the phone and ask about credentials, expertise, rates and other information you may want to know before setting an appointment.

For more information to help you reach your financial goals, check out the resources on OklahomaMoneyMatters.org.