How to Set Financial Goals You Can Really Stick to

A new year means new beginnings, including financial ones. So if you’re planning on setting new financial goals that you’d like to achieve in 2022, we’ve got some tips you can follow to make sure you’re setting yourself up for success.

Select sat down with Brittney Castro, Certified Financial Planner at Mint, to share some of her top tips for creating financial goals you can actually stick to in the new year. Here’s what to keep in mind.

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1. Avoid creating goals that are too extreme

2. Focus on creating incremental change

3. Accept the fact that there will always be financial surprises that arise

Make progress on any financial goal, like Paying off credit card debt can feel good – until you need to use your credit card again for an emergency and the payment cycle begins again. There’s a lot of emotion when it comes to managing your money, even after you’ve reached an important goal, because you may feel a new pressure to maintain it. This can be hard to do when you feel like there are always new expenses waiting for you.

“With money, there’s always this unexpected event that happens,” Castro says. “It’s a no-brainer, so the sooner we accept it, the easier it gets. Maybe your car breaks down or you get an unexpected bill. You need to build that into your financial strategy so you don’t get caught off guard, and it will win’ not derail your progress.”

One way to prepare for unexpected expenses is to create an emergency fund. An emergency fund is money separate from your savings account that you can use to cover any unexpected expenses. That way, you can pay off that surprise bill or cover your emergency car repair without incurring too much additional debt.

Financial experts generally recommend putting emergency money in a high-yield savings account, which allows you to earn higher interest each month compared to traditional banks. This way your money can grow a little faster even if you don’t make regular contributions. There are many options, but Select ranked the Marcus by Goldman Sachs High Yield Online Savings as the best overall account, and the Ally Online Savings Account as the best option if you also prefer to have a checking account.

Read Select’s roundup of the best high-yield savings accounts.

4. Use your budget to determine what is most feasible for you

At the end of the line

Information about Marcus by Goldman Sachs High Yield Online Savings was independently collected by Select and was not reviewed or provided by the banks prior to publication. Goldman Sachs Bank USA is a member of the FDIC.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff alone and have not been reviewed, endorsed or otherwise endorsed by any third party.

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