In Focus – SCCCU Blog

January always starts strong as we share resolutions and financial goals to get healthier and wealthier. Then we watch as our good intentions melt away by mid-February (or certainly by March). Sound familiar?

While the first of the year is a great time to make changes, it’s technically just another date on the calendar like any other. We shouldn’t pressure ourselves to make extreme overnight changes to our financial lives that aren’t realistically sustainable. The name of the game for lasting change is realistic baby steps — and we figure out what those are by focusing our energy on the core of what we want to change in our lives. No resolutions required.

Here’s how to identify the baseline issues you want to improve, and work on a better tomorrow for all facets of your life.

• Take Inventory Before Setting Financial Goals. If you don’t know where you’re starting from, you can’t know where you’re going. Conduct a financial inventory before you make any plans or set any goals. Think of it like stepping on the scale — it might not be fun, but it’s essential if you want to measure progress. Then, be honest. Studies show that we underestimate our spending by about 20%, so make a detailed list of your debts, including balances, interest rates, and minimum payments, and take a close look at where your money is going. And taking inventory applies across all your goals for the year, not just financial ones. If your focus is on improving your health, maybe it’s time to see your doctor, book a free session with a trainer, or start tracking your calorie intake before you commit to running a marathon or losing 50 pounds.
• Know Your Why. Before you start setting goals, take a moment to ask yourself what you want to accomplish and why. It’s one thing to say, “I want to save more money” or “I want to get promoted.” But it’s another to dig into the reason behind those goals. Do you want to save money so you can finally feel free to leave a job that’s draining you? Do you want that promotion so you can fund your daughter’s college dream with as few loans as possible? Your why is the emotional anchor that makes your goals stick. When you’re clear about it, it becomes a lot easier to stay motivated and make better choices throughout the year.
• Start Small. Commit to something small. If your goal is to increase your savings, don’t aim for $1,000 a week or even $100 if that feels like a lot. Instead, start with $10 or $20 and ramp up from there. Small steps build momentum, and momentum builds confidence. The name of the game is taking manageable steps toward bigger financial goals. You want to be ambitious, but also realistic — because unrealistic goals are the fastest route to giving up.
• Make a Plan. Whatever you’d like to achieve this year, have a thoughtful plan for how to make it happen. Without one, there’s a high probability it won’t. If you want to start running, schedule two or three runs a week and put them on your calendar. Looking to switch careers? Commit to researching and reaching out to one new contact each week on LinkedIn. Hoping to finally build an emergency fund? Set up an automatic transfer from checking to savings right now.
• Visualize Your Success. There’s real power in visualization. Research shows that imagining specific outcomes can make them more likely to occur. While you can’t simply picture touchdowns for your life and watch them appear, there is something to be said for incorporating visualization into your planning process — especially when you make it tangible. Vision boards are a great (and fun!) way to “see” your financial goals and aspirations for the year. You don’t have to go full Martha Stewart. Just grab some paper, magazine clippings, and your best handwriting, then start creating. It's not about perfection — it’s clarity. Whether it’s an image of your dream home or a photo of your kids that keeps your “why” front and center, the goal is that you make your aspirations visible.

This year, skip the resolutions and focus on setting realistic, meaningful financial goals. Because the best financial goals aren’t made from guilt or pressure, they’re made from purpose.