What To Focus On First In Your Finances
On this episode of Financially Naked: Stories from The Financial Gym, our hosts Whitney and Garrett are talking about how to set financial goals. As the new year approaches, many people are interested in setting goals around personal finances. Whether you’re starting fresh or looking to level up your financial health, they break down how to create realistic goals, build a strong foundation, and stay motivated on the journey. If financial wellness is on your list of priorities this year, this episode has you covered.
Podcast Notes
Why the New Year is a Perfect Time for Change
For many people, the new year offers the feeling of fresh starts and new beginnings. This makes it a great time to reflect on your personal goals and create change. The holiday can be a time of indulgence, and the new year feels like a time to reset and refocus.
While you can make a change at any time, the collective momentum in January can be motivating and inspiring. A new calendar year gives people a reason to reflect and try to better themselves.
The SMART framework (Specific, Measurable, Achievable, Relevant, Time-Bound) is a popular method for setting goals. Staying motivated when you’re actively accomplishing your goals is easier, so starting with small actionable goals can build momentum.
The path to financial freedom is a significant goal that requires time, patience, and consistency. Start by saving one month of expenses, then work toward three, and so on—similar to gradually building strength at the gym.
Laying the Foundation for Financial Wellness
Awareness is the first step to making meaningful changes. Start by taking stock of your current financial picture. You need to know your current income, expenses, and net worth. You can’t set meaningful goals if you don’t know where you’re starting.
Many people feel stress or shame about their finances. If you’re setting new goals, remember to be kind to yourself. Deciding to make a change is an amazing step, so try to accept your starting point without judgment.
Work on building an emergency fund as your first financial goal. Even if you have debt, having a 3–6 month emergency fund prevents you from taking on more debt when life happens. Building that savings will help you break out of the debt cycle.
Be intentional with how you approach debt. Using the debt snowball method (smallest balance first) can be motivating, while the debt avalanche (highest interest first) is mathematically the better option. You can choose which method works best for you.
Once you’ve built a financial foundation (saved an emergency fund and paid off high-interest debt), the next step is to start investing. When it comes to investing, time in the market is the most important, so even small, consistent contributions will grow over time.
Building Healthy Financial Habits for Long-Term Success
Personal finance is more than just the numbers. As you create new financial goals, work on shifting your money mindset alongside the numbers. Your habits and emotions around money are a huge part of your overall financial health.
Simplify and automate as much of the process as possible. You don’t need very complex systems to achieve financial health. Set up automatic payments for your debt minimums and savings goals, so you can keep up the habit without actively thinking about it.
Don’t compare your journey to others. Everyone’s situation is unique, and progress happens at your own pace. Instead, keep records of your journey so you can reflect and appreciate your growth and progress towards your goals.
You do not have to work on financial goals alone. A Trainer at The Gym is a great resource. Your friends and family can also provide accountability and support. The more you talk about money and personal finance, the easier it becomes.
Remember to give yourself grace. Meaningful change takes time, and setbacks are part of the process. Focus on your long-term progress and celebrate the small wins and accomplishments along the way.
If you want to work with a Certified Financial Trainer to help navigate your finances, schedule a free warm-up call today! If you have any ideas or questions for the show, send an email to trainerpodcast@fingyms.com.
Resources
Financial Gym's Four-Week Challenge to kickstart your financial journey.
Meet The Trainers
Garrett Faulconor, Certified Trainer Adviser
Whitney Catalano, Marketing Coordinator