5 Tips so that your Financial Resolutions are not just Discourse

The new year 2024 has come. Usually many people are excited to make new resolutions at the beginning of the year, including resolutions for finances. However, what about your resolutions in the previous year? Is it a reality or is it just a discourse? Often times, resolutions just evaporate, maybe there are many things and challenges that can cause your plans to fail or things from within yourself that cause your plans to be neglected. As humans, there is nothing wrong with wanting to be better, and one way to do this is by making resolutions. So, so that your resolutions this year are not just mere talk, consider the following tips.

1. Make sure your plan is SMART

When we make a plan, it must be formulated carefully. All elements must be measurable and achievable. Setting goals that are too high will make you give up quickly. To make it easier to plan your resolutions, you can use the SMART or Specific, Measurable, Attainable, Relevant and Time Bound formula, namely Specific, Measurable, Achievable, Relevant and Time Bound. By following SMART rules, your plans will be clearer, more structured and it will be easier to develop strategies to achieve them. For example, you want to collect savings of 10 million in one year. Don’t make plans like “want to become richer”. This is not concrete and not measurable.

2. Make a detailed plan

After the big picture of your plan has been created, then make the details of your plan. The more detailed your plan, the better and easier it will be to make it happen. For example, to earn 10 million in a year, you can determine how much money you have to set aside each month or each week. You can also set targets to see progress in achieving your goals, such as whether in 6 months you have met the target of 5 million or not, and so on. That way, when your target has not been realized, along the way you can adjust your plan to the existing conditions. Time limits in planning are also important so that we don’t delay and continue to focus on achieving goals.

3. Identify risks that will arise

On the way to achieving your goal, there will definitely be risks that arise. Our job is to identify it from the start and make a plan to overcome it. For example, there may be a risk that we will get sick. In order to keep going according to plan, it means we have to prepare emergency funds in addition to funds for saving so that these risks do not interfere with achieving our goals.

4. Maintain enthusiasm and motivation

Obstacles and obstacles that arise as the process progresses may have an impact on our enthusiasm. After we identify existing risks and prepare preventative steps, what is no less important is to motivate ourselves. It’s important to keep a long-term vision and focus on our goals. Remembering the benefits and goodness that will arise if our goals are achieved can give us new enthusiasm. You can also increase your enthusiasm by giving yourself rewards for what you have done. These self-rewards can take various forms, starting from cheat days, buying our favorite food, doing things we like, and many more. In this way, it is hoped that new enthusiasm will emerge.

5.  Note, Review, Adjust

You also have to regularly monitor the progress of each step you take, that way you can assess whether the steps you take are appropriate. You can record it in books or financial applications that are now widely available. Review the actions you have taken, compare them with the risks, whether the method is effective or is there a way that could be better. If your method is less effective or even not suitable at all for your situation, don’t hesitate to immediately change and adjust it. Life is always dynamic, we have to be able to adapt ourselves to circumstances, don’t give up easily when circumstances hit you, take a breath for a moment and think calmly about what steps to take.

Changing plans to become more than just discourse is not impossible. However, this requires careful planning, commitment and continuous adaptation. Hopefully with the steps above, it will be easier for you to achieve your goals this year. It is not success that is important, but the process and learning to achieve success that is more important and worthy of appreciation.

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