January 11, 2021

Be S.M.A.R.T about your financial New Year’s Resolutions

It’s that time of year again when people start making new years’ resolutions and writing their list of goals, you know the usual

·         Lose weight

·         Run a marathon

·         Increase your savings

·         Buy a house etc etc

Research has shown that about half of all adults make New Year’s resolutions. However, fewer than 10% manage to keep them for more than a few months, why is this I wonder? Maybe some were too grandiose or unattainable in the first place or maybe there was no plan for this resolution to be achieved?

If you are setting financial New Year’s resolutions this year I recommend following the S.M.A.R.T principles in order for these to be achieved.

Specific – what exactly do you want to achieve ? Do you want to buy a house, start a Pension, create a college fund for your children.

Measurable - Measurable goals means that you identify exactly what it is you will see, hear and feel when you reach your goal. It means breaking your goal down into measurable elements. 

Achievable - Don’t set yourself up for failure, if you earn €25,000 per annum it is highly unlikely you will be able to save €10,000 per annum. Make the goal achievable and attainable!

Relevant – is reaching your goal relevant to you? If you are saving what is it towards? Is it for a house you really want to buy or a new handbag or set of golf clubs that you may not need?

Time - Time is money! Everybody knows that deadlines are what makes most people switch to action. So install deadlines, for yourself in order to achieve your goal or resolution

Good luck to you all, I hope you achieve your goals and resolutions!

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