Start 2016 Right With This Reflective Exercise

December 30, 2015

As I reflect on the past year, I have plenty of personal milestones to celebrate (getting married and starting my career at Financial Finesse top that list), a couple things to mourn (my family lost two of our beloved pets), and quite a few more things to keep working on (this WILL be the year that I get back into those designer jeans!). Spending some time performing a “year in review” can be therapeutic. Recognizing how far you’ve come, even if you’re not quite where you want to be yet, is important to keeping you on the path to your goals.

Take some time over the next couple days to focus on where you’ve been and how far you’ve come before you start worrying about where you’re going. (If you do need to correct course, you also have to know where you are first.) Here’s a little guide to help you get there:

1. Get comfortable. Think of this as “you” time. Last year, I performed this exercise in the relaxation room of the spa I was visiting on my birthday. Goal setting is self care just like indulging in a massage or hard workout. If you think of it that way instead of as something to dread, you’re much more likely to do it…and enjoy it.

2. Do a mental walk through the past year. Think back to how you spent last New Year’s Eve then month by month, think of the significant things that happened to you and write them down. It doesn’t have to be a “life event” in the Facebook sense. It could be as simple as completing a big project, reaching a savings milestone or hosting a party. My list includes big things like the job and the husband but also smaller things like visiting a friend in Laguna Beach and paying off my last 0% credit card balance.

3. Review last year’s goals. If you didn’t write them down, that’s ok. Write down what you remember them to be now and review.

Don’t self-flagellate if you missed one or two, but it is a good idea to reflect on what got in the way. For example, my weight loss goal went in the opposite direction. There are times I could have been better, but I am also going easy on myself as I had a LOT of change throughout the year along with some health issues that got in the way. This also caused me to miss the mark on a financial goal.

4. Adjust your course if needed. My financial goal was to fully fund my health savings account, which I did, but I also fully spent it in 2015 with a visit to the ER. To adjust for this, I had to rethink my insurance choices for 2016 at open enrollment.

If your goal was to pay off a credit card but instead you find yourself deeper in debt, what happened? Perhaps an emergency came up that you had to use the card for. Adjust the goal for 2016 by including a plan to create a cash cushion so that you can put the card away for good while you pay it off.

5. Make sure you’re setting SMART goals. Your goals should be Specific, Measurable, Actionable, Realistic, and Timely. “Save more money,” isn’t a goal. “Build a $1,000 nest egg by June 30th,” is. You know exactly what you’re shooting for, and you’ll know exactly when you get there.

6. Make your plan to get there. Set yourself up for success by automating what you can. A $1,000 nest egg in six months requires $83.33 per paycheck (if you’re paid biweekly) in savings. Set up an auto-transfer to a savings account now for that amount, then forget about the account. For my first step, I’m marking time on my calendar each week for healthy eating, including time to go to the grocery store and prepare as well as time to actually enjoy the meals I prepare.

Want to go a little deeper into your 2016 goal-setting? I highly recommend Debbie Ford’s book, “The Best Year of Your Life.” This is the book I used to set my 2015 goals and while I’m ending the year a little differently than how I thought I would, it’s even better than I thought it would be. It truly has been the best year of my life.

Looking for a book specifically for your finances? Then you need our CEO’s new book, “What Your Financial Advisor Isn’t Telling You: The 10 Essential Truths You Need to Know About Your Money.” It’s not only a great read, but it includes a great checklist of easy steps you can take to achieve your Financial Independence Day.