Success in the New Year: Setting Financial Goals for 2023

A notebook on a desk surrounded by a pen, calculator, and other objects. The notebook says Financial Goals with a list with the numbers 1-5 written out.

11/21/2024 By: Money Mastery

What do you imagine when you hear the words “New Year’s resolution?” Going to the gym? Cutting out sweets? If you’re reading this you probably aren’t surprised to hear that saving more money/setting financial goals is one of the top five most popular New Year’s resolutions. Sadly, over half of people who make that a goal fail to achieve it.

With inflation on the rise and fears of a looming recession, it’s important that you are successful in saving more money than you did last year. It won’t happen by just wishing and dreaming that you’ll get more money, you will need to set at least one financial goal and budget to make it a reality. It seems daunting, but Money Mastery LLC is always dedicated to helping you with your money Here are 5 key points to remember when setting financial goals for 2023.

Prioritize what you need most

What was your inspiration for clicking on this blog post? Take that idea and word it into a specific goal. You should focus on one short term and one to two long term financial goals for each fiscal year. If you create too many goals you won’t accomplish any of them because your money will be spread too thin. If you have any high interest debt, we recommend making that one of your first financial goals. The longer you take to pay off high interest debt (like credit cards), the more your debt will pile up. Financial goals are not set in stone, they can (and should) be revised as your finances change.

Review your current financial situation

When setting financial goals, you can’t move forward until you have a full picture of your finances. Do you know your net income? Can you predict your income tax? If you have multiple long term debts such as a house or car, how much will you need to continue your payments on them? Make sure you have an idea of your monthly, quarterly, and yearly budget. Then you’ll have a realistic picture of how long it will take for you to meet your goal.

Make an Emergency Fund a priority

The only certainties in life are death and taxes. Emergencies and world shutdowns happen. The only way to make sure that you or your business perseveres in difficult times is to have an emergency fund squirreled away. When you’re setting your financial goals for 2023 you should aim to have 3-6 months of expenses in savings. If that isn’t possible for a short-term goal, start by saving $1,000. Nothing will derail your goal to save money faster than the absence of an emergency fund.

Make your goal measurable and time-specific

Your financial goals for 2023 should be measurable. How will you know if you have met your goal? Determine if you want to set aside a set amount of dollars or a percentage of your income. Set a specific date that you should meet your goal including a month, a day, and a year. Circle it on your calendar, write it in your planner, or put multiple reminders on your phone. Once you have decided when you would like to meet your goal and how much money you will need to make your goal you can break it down by a weekly or monthly budget. Determine how much money will have to be set aside each week or month in order to reach your goal.

Write it down and check your progress

Science has proven that you are more likely to follow through with your goal if you write it down and post it in multiple places where you can see it. Put a note on your mirror, in your car, on your fridge, in your purse, anywhere you check daily (or multiple times a day) to remind yourself what you are working for, whether it’s to be debt free, to put down money for a house, or to travel somewhere exciting and new! It’s harder to follow a budget if it is simply in your head. You should check your progress towards your financial goal frequently whether it is bi-weekly, monthly, or quarterly. This will help you stay on track to meet your goals.