How did you do in 2019? Did you achieve any or all of your goals?
December is a great time to evaluate accomplishments and shortcomings for the year, as well as any general progress you may have made pursuing something worthwhile. It is a time of reflection for all that you experienced, and to plan ahead for what’s to come. If you don’t keep a journal to track your progress, now’s the time to start!
When looking ahead to the next year, it’s easy to get wrapped up in the chatter surrounding a possible recession. Will there be one? And if so, how big will it be? How do I develop achievable goals with so much uncertainty?
It’s simple. Focus on what you can control.
I recommend one overarching goal that allows you to develop a few, smaller goals.
Primary Goal
When you set a certain net worth that you want to achieve for the year (or perhaps over the next 3-5 years), you are effectively creating sub-goals at the same time. If you are having trouble coming up with a primary goal, this is a great one to establish. It will likely look a little something like this…
Primary Goal: Reach a six-figure net worth
Which means you will need to…
Reduce Debt – If you carry any debt (credit cards, student loans etc.), you will want to reduce it.
Increase Income – While saving and investing is critical to increasing your net worth, you can only reduce spending by so much. Increasing your income will allow you to stash a lot more cash. Perhaps to help you acquire a higher income, you need to either change jobs or pick up a side hustle.
Find a Mentor – Having a mentor who has achieved what you seek to achieve can be an invaluable addition to your plan of action. A mentor may be able to show you new ways to increase income, reduce debt, or simply raise your personal and professional profile.
Invest in Yourself – In addition to finding a mentor, make sure you are reading the right books, attending the applicable seminars, and taking courses.
Once you’ve established your primary goal and sub-goals, you’ll want to create a system for tracking progress along the way. Keep tabs on all of your assets and liabilities on a monthly or quarterly basis, as well as a method for holding yourself accountable to certain milestones…and you are on your way!
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