Save Money, Beat Debt In 2012 With Focused "Microgoals"
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Financial expert Alexa von Tobel of LearnVest.com offers some tips to help those with budget-oriented New Year's resolutions stay on track. NY1’s Tara Lynn Wagner filed the following report.Forget losing weight: This year, many people are resolving to beef up their wallets.
Alexa von Tobel of the personal finance site LearnVest.com says 43 percent of resolutions are financial ones.
“Most people are really looking to try to spend less or save more, right? The basics. Try to keep as much of their money for themselves as possible,” says von Tobel.
Promises made in January are usually long forgotten by the time February rolls around, though, which is why von Tobel says that rather than set one daunting financial goal for the year, it’s best to establish a series of smaller “microgoals.”
“Basically, set goals for one month out, three months out, six months out, so you don't think of the whole year as one year. Really set microgoals. I think that really helps people stay on track,” says von Tobel.
The next step is to spread the word. People are more likely to stick to a diet or exercise plan if they have a workout buddy—telling people you're on a money mission will allow them to help you along the way.
“Tell your closest and best friends. Really help the people who love and support you to help hold you accountable. Particularly when they ask you to go out to dinner or spend money on a concert, they'll understand that I'm really saving for these goals and you know about them, so help me,” says von Tobel.
Similarly, feel free to brag about your breakthroughs. When you reach one of those microgoals, tweet about it, and you may just inspire some of your followers to follow suit.
Finally, before laying out financial goals for the new year, take a thorough look at where you are today. Set a detailed budget and see what kind of changes you can and can't afford, otherwise you may end up making financial promises you can't possibly keep.
“Don't set goals that are completely out of your reach that you are never going to get there. Set yourself up for success and set goals that you can easily achieve,” says von Tobel.
For more tips on setting and sticking to a financial plan, visit LearnVest.com's Resolution Central.