Setting money goals so they actually stick!
New Year’s Resolutions, do you love them or hate them? Data suggests that actually, almost 80% of people lost interest in their resolutions by mid-February last year. So how do you actually make some money resolutions that you can stick to?
Make it manageable
Year-long goals can seem really daunting and if your end date is 31st December 2022 it might be hard to see the wood through the trees. A lot can happen in a year, so instead of setting annual money goals why not break it up into shorter monthly goals? You’re more likely to stick to shorter-term goals and it will encourage you to take the time to check in on your progress more regularly and give you the chance to flex your goals if your circumstances change.
Prioritise an emergency fund
When it comes to money goals, make sure building an emergency fund is one of them. If there’s one thing the pandemic showed us is that things can change very quickly and we have no idea what’s around the corner. An emergency fund can protect you financially if you have a change of circumstance, whether you lose your job or you leave a relationship. Start by putting a little away each month and eventually build that up into 3 months worth of living expenses.
You can do this in the Wagestream app by setting up your saving pots to save directly from your pay. Take a look here.
Plan a money check-in
If we spend lots of hours earning money each week then we should spend time managing it. Set aside time weekly, every two weeks or even monthly to check in with yourself and on your goals. You could use this time to review your budget, read money news or even to check what you’re spending your money on.
When you see results from your actions you are more likely to continue with those actions. When investing money, you’re more likely to see a greater return over a longer period of time helping you stay motivated when it comes to putting some money aside. But remember when you invest your capital is at risk, so never invest anything you couldn’t lose, the key is to really start small, start off by investing £2 – £5 each month in 2022!