When it comes to focusing on your financial goals for the upcoming year, there is one strategy that is tried and true. It is known as the SMART goal strategy. SMART stands for specific, measurable, attainable, realistic, and time based. This system focuses on making small steps to reach your ultimate goal, and it gives you helpful methods of doing just that.
Here are some of the things to consider:
Maximize Your Investment Contributions
When you maximize your investment contributions, you will help to increase your overall net worth. This is something that should be revised each year to help you reach your long term financial goals.
Grow Your Net Worth
In order to reach your maximum financial potential, it is very important to focus on the growth of your net worth. You can do this by focusing on reducing your debts and liabilities and increasing your cash flow.
Simply Your Portfolio
Keeping track of stocks is definitely a time consuming task. The best way to do this is index a large portion of your investment portfolio. Indexing RRSP accounts with ETFs is a great idea.
Grow Your TFSA
If you find yourself tempted to spend a good deal of cash, which most people do, then you will want to consider growing your TFSA, which is usually comprised of mostly cash. You should set a percentage for growth and focus on that. This will give you some room to experiment with new investment strategies as well.
Support a Local Charity
As your cash flow increases, you should also increase your charitability. Support a local charity. This helps to build rapport.
These are some great financial goals to focus on for the upcoming year. You will likely have some of your own ideas as well. Focus on ways that you can improve your financial situation using the SMART method.