We’ve all been there.

You set a money goal in 2022 that seemed somewhat achievable, but then you failed to make progress, or at least progress that felt meaningful. 

Now you’re umming and ahhing about whether to even add new year money goals to your list of 2023 resolutions. 

Over the years we’ve buried our heads into the latest behavioural science on goals to come up with the ultimate money goal-setting guide… have a go!

1. Make your goals SMART

Ok, we know that you probably know this already. But it’s a good reminder if our goals are specific, measurable, achievable, relevant, and time-bound (SMART), we’re more likely to achieve them. This will help you clarify what you want to achieve and give you a roadmap for getting there. Need more help understanding the SMART concept, read this. 

Here’s an example of how to turn vague New Year money goals into a SMART money goal:

✖ I want to start investing 

✔ I want to have $2,000 in savings ready to start investing by the end of March 2023.

2. Think habits

We love the saying by the author of Atomic Habits James Clear that  “You do not rise to the level of your goals. You fall to the level of your systems.” Your goal is your desired outcome. Your system is the collection of daily habits that will get you there.

This year, spend less time focusing on outcomes and more time focusing on the habits and actions that precede the results.

Here’s an example of how to put some habits and actions around that goal of having $2,000 in savings to start investing.

✔ I will put 20% of my savings each month into a separate account that I will use to invest.

✔ Every time I want to buy something online I am going to take a screenshot or add it to a cart, but hold off for at least 24 hours to work out if I really need it.

✔ I’m going to ask my boss for a pay rise and develop a plan to ensure I get one.

3. Make your new year money goals inspiring 

This one’s important, a dull goal isn’t going to be memorable and won’t motivate us to work towards it. Ensure your goals are inspiring, imagine how you will feel when you achieve them, it can even help to visualise them with a drawing or on a vision board. 

Here’s how to improve our goal to make it a little more inspiring.

✔✔ In 2023 I’m going to start acing money, it’s the year I’ll start setting myself up for the future by investing. Starting to invest is going to help me feel in control of my money and confident. My first goal is to save $2,000 by the end of March 2023 to make my first investment.

4. Master your self-perceptions

Your self-perceptions can hold you back

✖I’m shit with money

✖I don’t know how to invest and it seems to complicated

✖I might end up losing money

Or push you forward

✔ I’m great at savings

✔ I’m a fast learner and can learn how to invest

✔ I’m good at making sensible decisions and that will help me manage risk and be a good investor.

So take a moment to think about all the skills and resources you have to achieve your goal.

5. Share your goal with someone you respect

The research shows that sharing a goal with a loved one or someone you respect highly can help it stick in your mind and give you accountability to achieve it. But be careful, telling too many people, and acting as though the goal has already happened can be counterproductive – sending off the same chemical hit in your brain as though you’ve already achieved the goal, and this can work against you. 

Let’s pull it all together and recap

You started with vague new year money goals:

✖ Starting to invest in 2023.

Now we have specific and inspiring goals

✔ In 2023 I’m going to start acing money, it’s the year I’ll start setting myself up for the future by investing. Starting to invest is going to help me feel in control of my money and confident. My first goal is to save $2,000 by the end of March 2023 to make my first investment.

We also have some habits and actions that you’re going to focus on:

✔ Shift 20% of my salary each month into a separate account that I will use to invest.

✔ Reduce my online shopping by waiting 24 hours before I make any purchase and only buy something if I really want it. 

✔ Ask my boss for a pay rise by the end of January. 

You’ve also identified some key strengths you have to help you achieve your goal

✔ I’m great at savings

✔ I’m a fast learner and can learn how to invest

✔ I’m good at making sensible decisions and that will help me manage risk and be a good investor.

And with that you’re off! Good luck, and we’d love to hear if you found this useful.

Tag us in your thoughts online or email us hello@vervemoney.com.au – or keep reading more from Verve Money

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