5 Signs You Should Reassess Your Financial Goals

What’s the point of having financial goals if you’re struggling to reach them? That’s a good question, and if you’re finding yourself asking it, chances are you just need to reconfigure a few things. Here are five signs that you should reevaluate your goals—or even give your financial plan a makeover.

You’re Living Paycheck to Paycheck

If your financial goals have put you in a situation where you feel like everything could come crashing down at any moment, there’s something wrong. Living paycheck to paycheck is massively stressful and often means that your financial goals don’t align with your reality. 

Focus on your budget first. You may even want to use an app to track your spending better. Most people living paycheck to paycheck even when they make decent money simply are just spending without any accountability.

You’re Ignoring Your Debt

No healthy financial plan includes pretending like your debt doesn’t exist. If that’s part of your truth, it’s time for a wake-up call. Ignoring debt doesn’t make it disappear; tackling it head on is the only way it will ever go away. 

Start by making a list of all your debts and creating a repayment plan that gets specific enough to motivate you. Two popular methods of paying off your debts, the snowball and avalanche approaches, can help you get there. The snowball effect focuses on paying off small debts first, while the avalanche method targets debts with the higher interest rate. Both are effective, so just choose whichever makes more sense for your situation.

You’re Not Saving for Retirement

Retirement may seem far off, but the earlier you start saving, the more time your money has to grow. Many people aren’t allocating enough funds toward retirement, even when they have employers that offer 401(k) plans. 

If you’re self-employed or your employer doesn’t offer a retirement plan, consider opening an IRA (Individual Retirement Account)—there’s no reason you shouldn’t be investing even just a little into your comfort once you retire.

You’re Going Through Major Life Changes

Major life changes, such as getting married, having a baby, or switching careers, can significantly impact your financial goals. Always take the time to reassess your financial goals when experiencing a significant life change. A good example would be learning you’re having a baby. 

Many expectant parents would and should set up a separate savings account for future expenses like diapers and daycare. It’s okay if you have to make adjustments; life happens, so roll with the punches as best you can.

You Aren’t Tracking Your Progress

Tracking your progress is a useful way to know how far you’ve come and how much you have left to go. But more than that, it’s a way to keep yourself motivated. Set up regular check-ins to review your financial goals. Monthly or quarterly reviews can help you stay on track and make adjustments as needed. Use spreadsheets, apps, or even a simple notebook to track your progress. 

Celebrate your successes, no matter how small. Did you finally pay off a credit card? Treat yourself! It sounds counterintuitive, but it’s actually one of the best ways to ensure you stay on course, provided you don’t go overboard with the treats.

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