Key Takeaways
- When it comes to facing your money-goals this year, begin with sustainable and bite-sized steps. Identify one financial priority, break it down into a tiny first step, and schedule it like an important appointment. This gentle and intentional approach helps you build momentum without burning out.
- Take care of you by “paying yourself first.” Set aside money for your goals before spending on anything else. Automation takes the pressure off and ensures you’re consistently caring for your future self.
Goal Setting, More Mindfully
Happy New Year! We probably all have a bit of that clean-slate feeling that comes with turning the calendar page to an entire new year. Everything feels fresh, and so much more possible, right? Let’s get the ball rolling with that energy!
We all know that most New Year/New You types of resolutions don’t last. We often overshoot our intentions and end up falling-flat. This is because we go from doing zero of “that new thing”, and expect of ourselves very lofty outcomes–completely missing the mark on capturing any sustainability. We’ve all done it. We burn out, and often don’t come back.
How good might it feel to do it differently this year, by adding some intentionality to the mix? When we take the time, even a little bit of time, to plot out what really matters, we can do extraordinary things.
Take a moment to draft your top-two financial priorities this year. Identify that one thing that’s been nagging at you. Perhaps you wish to finally get that Emergency Fund or Retirement Savings started. Or, how about prioritizing any high-interest debt? Maybe, this is the year you want to save up for some travel or another big-ticket item in advance so you have the money when and where you want it, when you need it!
Allow yourself to visualize what reaching that goal would actually be like. What are you doing with the money you worked so hard to manage? How do you feel? Are you satisfied, more secure, or perhaps even proud of you? You can get there!
Start small. Really small. Like, identifying just the first and most-available step. Then, put that step on your calendar, like you would any other important appointment. For example, “on this date, I will reach out to HR (or, insert helpful financial friend/colleague who has already done this thing) and get the information I need regarding my employer’s 401(k).” That’s it. Give yourself a treat. Schedule when you will do the next tiny step–and so on.
Return to how completing this action would make you feel–over and over. Even the smallest actions provide the momentum to get on your way!
Pay Yourself First
“Do not save what is left after spending, but spend what is left after saving.”–Warren Buffett
We can trust that Warren Buffett knows a thing or two about growing wealth.
Wrap your ahead this radical concept–that works. By taking care of you first, and then spending what is left, you’re showing discipline and restraint, as well as self-care. This way, your money is set aside for you and your important goals, and (as long as you start small) you still have some leftover for the non-essentials!
In order to get started, automate something very low and achievable. This could look like:
–Taking advantage of your paycheck directing a small portion of it’s funds towards your retirement savings or a HYSA (High Yield Savings Account) at work (tip: start with just enough to cover the employer match, if there is one)
–Setting up an automatic transfer to another savings account in line with the day you pay yourself at your own business so you have somewhere to store money for taxes (tip: be mindful that these dates don’t coincide with another big payment due date like rent or a credit card payment date)
Automation and consistency are your greatest allies here. Once you get going, aim to save 20% monthly, with 15% of that going to retirement and 5% going to savings. Again, start much lower if you need to!
FAQ’s
- As a solopreneur, how do I know how much to save automatically if my income varies?
You know your business better than anyone. You know the busy times and the slow times. Take a moment to audit when your busiest times are (seasonally, for example) and up your automatic contributions and transferred amounts at that time. During the slower times of the year, it’s ok not to send any money to savings, unless you have some leftover after meeting your essential needs. You will make up for it in the busy season.
- Where should I start? Retirement Savings, an Emergency Fund, or paying down my debts?
You want to start by giving yourself the peace of mind of having the Emergency Fund, so that turning to credit cards and incurring more high interest debt is no longer your only option. You can fund a HYSA to a small and reasonable goal that aligns with your income. An amount that would save you in an unexpected event–even $500-$1000 in a higher interest-bearing account can be really helpful. At the same time, try to prioritize your highest interest rate credit card, paying a bit over the minimum. You can keep paying the minimum amounts on the lower interest rate cards to get you started, while you’re still contributing regularly to your savings. Use this calculator to see how fast your debts will come down, and then adjust your payments to your desired timeline!
Need any help getting going on your new money management strategies this year? Schedule your free 30-minute consultation!
Unlocking Abundance 