January 1st is a time to look ahead and make a New Year's resolution or two concerning all the things you want to do during the new year. That doesn't just include setting goals like getting into shape or learning a new language, though--it can also include financial goals. 

Of course, financial goals, like other New Year's Resolutions, can require a lot of work to achieve them. Before you set your financial goals, it pays to take some time to plan and ask yourself some questions.

Here's how to set goals for your New Year's Resolutions

Review the Previous Year

Before you can start setting new financial goals, though, it's worth looking back at the previous year to see what you can learn from it. You should start this process by thinking about the successes and milestones you reached in the last year. This isn't just a good way to think about how to build on your previous triumphs--it can also boost your mental health and leave you feeling more confident you can reach the goals you set in the new year.

To find out what went right, ask yourself:

• What went well with your finances last year?
• What actions did you take to succeed?
• Did you pay down debt?
• Did you increase savings?
• Did you make a major purchase or pay for an event with cash?
• Did you stick to your budget plan?
• Did you overcome any financial obstacles?

Once you list what went right, think about areas where you may have come up short, or need to improve.

When thinking about what to improve, ask yourself:

• What could have gone better?
• Where are the areas for improvement?
• What held you back?
• What changes can you make?
• Is your savings where you wanted it?
• Were you too aggressive or not aggressive enough with your savings goals?
• Should you try again with a more realistic amount?

Don't get down on yourself if there are areas where you did not succeed. Use them as learning experiences to improve your financial position this year. Consider trying something new and moving out of your comfort zone if things didn't go to plan last year. Maybe start a formal budget or structure your direct deposits to help you save!

How financially fit are you? 

List the Financial Goals you Want to Achieve

Once you've taken stock of the previous year, it's time to think about what you want to accomplish in the next 12 months. This type of goal setting might sound hard, but it really isn't.

You'll want to start by scheduling some quality time for yourself. For instance, it could be in the evening after your kids have gone to bed, or early in the morning while you're having your morning cup of coffee.

Once you've set some time aside, all you have to do is start thinking about what financial goals you'd like to achieve in the next year. Some examples of financial goals might be:

• Buying a new yoga mat
• Putting a down payment on an automobile
• Buying a house out in the country
• Getting a new appliance
• Taking a summer vacation on the East Coast

While you're listing these goals, you might be tempted to avoid listing any goals that aren't realistic. Ignore this urge--there will be plenty of time to consider whether or not a goal is realistic later. This is the time to think about what you want, both in the immediate future and in the long run.

Prioritize Your Financial Goals

Once you've made up your list of goals, it's time to prioritize them. Select a couple of goals you'd like to focus on achieving first. You could start by prioritizing goals that are more urgent or have a shorter timeframe. For example, if you have credit card debt, prioritizing paying it off quickly can help improve your financial situation.

Next, consider prioritizing goals that align with your long-term financial aspirations. This could include goals like saving for retirement or investing in higher education.

Remember, prioritizing goals allows you to focus your time, energy, and resources on what's most important to you. It helps create a clear path towards achieving financial success.

Make Your New Goals SMART

Once you've figured out what goals you'll want to start working toward first, it's time to make a concrete plan to achieve them. The best way to do this is to use the S.M.A.R.T goals method. In other words, make sure your goals are:

• Specific
• Measureable
• Attainable
• Realistic
• Time-Bound

Answering these questions is a great way to set up a roadmap for how you'll reach your financial goals, as well as how long reaching those goals will take.

Put your New Year's Goals Into Action:

Once you have your financial resolutions set, the question becomes "What are you going to do TODAY that will help you get to that goal?" Some steps you can take include:

• Going through your budget to find extra money for your goal
• Researching different types of savings accounts to see which one best fits your needs
• Looking up different savings strategies, like a CD ladder

 We can create fantastic long-term and short-term financial goals. However, it is those tiny, every day decisions that will get you there. So what are you going to do today?

Get started setting financial goals today

How can one stick to their New Year's resolutions throughout the year?

To stick to your New Year's resolutions throughout the year, it's important to set specific and achievable goals, break them down into smaller milestones, track your progress regularly, stay motivated by rewarding yourself, and surround yourself with a supportive community or accountability partner.

Achieve Your New Year's Goals With First Alliance Credit Union

A new year is a great time to set financial goals. However, you'll need to plan if you want to achieve those goals. You need to look back on the last year and figure out what went right--and not so right--before making your financial goals into S.M.A.R.T. goals and coming up with a plan for how you'll achieve those goals in the upcoming year. 

If you want to make achieving your financial goals easier, become a member of First Alliance Credit Union today. You can save money in our traditional savings accounts, open up a club account that will only let you access the money you put in at a different date and even figure out how to budget for your financial goals by using the budgeting guide in our resource center.