— ATTAINABLE: Your goals need to be something you can accomplish within a year. If you’re paying off $10,000 in credit card debt, for example, find what you can realistically pay monthly, multiply that by 12 and use that amount as your goal.
— RELEVANT: Choose goals that are meaningful to your personal values. Similar to finding your “why,” choosing relevant goals helps ensure that your 2021 financial plan is connected to your life goals. If you want to retire early, think about upping contributions to a retirement account so you’re on track to accomplish that multi-year goal.
— TIME-LIMITED: Setting a deadline can keep the pressure on. And think about breaking up your overarching goal into smaller pieces that you’ll achieve on a monthly basis. Hitting monthly goals can provide a steady feed of accomplishments, which can keep you motivated.
Take the SMART acronym a step further by tacking on an “R” for “reward.” Plan rewards for yourself as you make progress. The more enjoyment you get out of the process, the more likely you are to keep working at it.
Say you want to reduce debt. For each $100 you pay off, find a way to treat yourself, maybe by making a nice dinner or having a DIY spa day at home.
Tactics to boost your progress
Finally, here are a few simple tips to build momentum: