Financially Fit & Fabulous: Goal Planning Part I

WE are almost at the end of the second month of the new year.  It’s still an excellent time of year to review our old habits that are holding us back, then adopt   new ones which are worth adding. This is  the first of a two part series on goal setting to get you started.

We begin with a reminder about something which you may already know. Your goals should be SMART, that is, they should all be Specific, Measurable, Attainable, Realistic, as well as  Relevant and Timebound.  Don’t be vague.

Say exactly what you want to change, why and when. For example if you want to network more and make new contacts, write down what would you like to improve with the current set of contacts and what are your objectives in making the new connections.

Write down some strategies which can be  used to network more.  Test these contacts and network situations  for the values and qualities you are trying to build. Even under pandemic conditions, you can make use of online sites, digital connections, and even church or social groups to establish contacts of like mind, business interests, who will motivate you in areas where you need growth.

When thinking of making a new habit, make sure that you also consider the conditions which will make the effort realistic and likely to succeed. For example, if one of your goals is to eat cleaner by eliminating fast food, the realistic approach is to twin that goal with another which says that you will start cooking or adding easy to prepare foods to your shopping list.

Pace yourself as well. Write down the time period in which you  hope to achieve a permanent change in the goal being considered, if not immediately. That being said, here  is the first part  of a list of possible goals which you might want to use to enhance your life in 2022:

1. Expand your circle of influence

If you are currently surrounded by individuals with similar interests who are unable to contribute to your future goals, or assist with your growth path positively, you need to expand your circle of influence. Consider socialising with persons from your new field of interest or from umbrella organisations  that represent these bodies.   Increase the amount of time you spend with them, and make time to participate in activities that will help you advance your new mission. Be sure to try to connect on a personal level as well, help each other to solve similar challenges.

2. Create healthy habits

It’s always a good time to add exercise and healthy eating habits to your lifestyle.  Specific and realistic. Critically examine your level of activity and consider the easiest and most effective way to increase your level of activity. Maybe the answer is to exercise for half an hour each day using dance videos on YouTube. Or maybe, knowing yourself, it’s better to hire a personal trainer. Do what works for  you and what you can afford.

In the area of changing your diet, if you plan to delete fast foods as a menu item, and you also know you do not like to cook, you may consider adding ready to eat vegetables and fruits as a healthy addition to your diet. Fruits and veggies can also be blended to make tasty drinks which can replace those sodas which may lead to diabetes.

3. Spend consciously

Reduce or remove impulse spending from your life. Apart from a small budget for emergency and unexpected needs, avoid spending on unplanned purchases.  Do not add unlisted products to your shopping cart, whether online or in the supermarket. Planning spending  involves budgeting that looks at your expenses, needs and planned savings and investments.

Anything that falls outside of the budget should be scrutinized ten times before a decision is taken.

4. Establish an emergency fund

This year, commit to establishing an emergency fund that will reduce the chances of you making withdrawals from your investments to manage an upcoming crisis.  This fund is recommended to be 3-6 months of income.  While this is the recommendation, just get started. Consider establishing a standing order to help keep you on track with consistently contributing  to this  emergency fund so you will have a safety net you can depend on. This is important to reduce the risk of you diverting funds away from your main goals.

5. Manage stress

Determining to reduce the sources of stress in your life is another excellent goal. Do not wait until the last minute to prepare work assignments or any other activity that comes with a deadline. Make up your mind to tackle to-do tasks on a timely basis. Place reminders where you will see them. If you have been in the habit of procrastinating, now is a good time to leave this habit behind. Identify other sources of stress and develop a strategy to deal with them.

6. Be more honest

This is a new habit that can be applied to many areas of your life. Here are some common examples. Do not create a budget which you know is unrealistic  based on your income and spending habits. Honesty is where change begins. Add to this goal the twin objective of being a better time manager. Do not wait until the last minute to advise your family or work colleagues that what they have asked you to do is impossible. Give them the opportunity to ask someone else who is capable of delivering.

These are just a few areas of your life where you can work on developing new habits. Work ‘SMART’ at them and watch your life blossom!

Sonia Brown is a licensed Investment Advisor from Scotia Investments Jamaica Limited.