#1 Review Your Finances
The first step toward setting financial goals is to review your current financial situation so you understand where your money is going. That way, you can pick areas to scale back spending and redirect money into savings instead.
#2 Dream Big
Kris Duggan, chief executive and co-founder of the goal-setting software BetterWorks, says many people hurt themselves by choosing “safe” goals that are easy to achieve but not challenging enough. If you set big goals for yourself, you might come up short, but you’ll also push yourself to your highest limits, he says.
#3 Be Specific
Instead of resolving to “save more,” pick a number and challenge yourself to save that amount each month. Likewise, be specific about the debts you want to pay off and in which order; perhaps you want to start with credit cards and then move on to student loans.
#4 Share Your Goals
Letting supportive friends know that you’re trying to save more money can make it easier to explain to them why you can’t meet up for an expensive night on the town. It can also offer an accountability partner who checks up on your progress while sharing his or her own.
#5 Team Up With Your Partner
If you share your finances with someone, then you’ll want to get on the same page with your financial goals. Set up a money date to review your current finances and what you want to work on together. That way, one of you won’t be packing brown bag lunches while the other splurges.