How to set financial goals for the New Year

By Lis McNealey Davies, CDFA®
Owner, Financial Advisor

I love the old saying “what gets measured gets managed” and I refer to this often when working with my clients. With years of experience in investment planning, I can confirm that those who have clear goals backed by a solid plan typically have the most successful outcomes.

Here are a few reminders on how to best set financial goals. Having a plan that you can measure is crucial to your success.

Don’t let fear hold you back
Most clients fear looking at where they spend money. Fear allows a person to not move forward. Work through the fear. Once you know, then you know and can do better!

Take inventory of your income and expenses
Has your income changed over the last year? What about your expenses? Get everything down on paper so that you can truly see what you have coming in and what you have going out. Taking a look at three months of income and expenses is a good starting point.

Ask yourself what you want to accomplish
What are your goals? Are you planning to buy a new car, pay for your child’s college expenses, buy a second home or retire early? Getting specific about what you want your future to look like will help you get your priorities in place. Write these priorities down and refer to them often!

Set reasonable short-term goals
Don’t get overwhelmed by the big picture. Setting realistic and attainable short-term goals can help you achieve success! Making progress on your smaller goals will provide great momentum for you to conquer your bigger ones.

Monitor progress quarterly
As stated above, what gets measured gets managed so make sure you are tracking progress on your goals quarterly, or at the very minimum annually, and readjust your plan as needed. Have plans for each goal and monitor those plans. Get help from a financial advisor as they are your advocate to help you reach your goals.

The New Year is the perfect time to take inventory of your financial situation and set future goals. Our team is here to help you begin the year on a successful financial foot. Contact us to get started!

Lis McNealey Davies is owner of The Arlington Group Investment Consulting. A leader in the female focused financial advisory niche, Lis builds upon the group’s strong foundation and core offerings to drive growth and champion the group as an emerging advisory company in the divorce, widowed and life transition niches. As a previous divorcee and mom to three wonderful daughters, Lis understands firsthand the importance of financial confidence.
The use of the CDFA® designation does not permit Wells Fargo Advisors or its Financial Advisors to provide legal advice, nor is it meant to imply that the firm or its associates are acting as experts in this field.
Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. The Arlington Group Investment Consulting, LLC is a separate entity from WFAFN.