Setting Financial Goals for 2023

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It is officially the new year. That means the time has come to think about and set goals for 2023. As we deal with the rising cost of everyday expenses and a possible recession in 2023, many people are beginning to make changes to their finances. Improving your financial life is becoming more of a necessity. 

In this post, I will discuss the steps involved in the goal-setting process and the six different types of financial goals. In the end, I will discuss the financial goals I plan to work on in 2023.

Goal Setting Process

The first step in the goal-setting process is to look back and reflect on your accomplishments in 2022. Did you finally pay off that credit card debt? Did you purchase your first home? Did you begin saving money in an emergency fund? Take time to celebrate the wins from the past year.

Next, you should envision how you want your financial situation to look at the end of 2023. Would you like to be debt-free? Do you want to increase your income with a job promotion? Do you have any big purchases planned for the upcoming year?

Once you have an idea of what your financial situation will look like in 2023, you can begin to decide what goals are important to you in the new year. As the saying goes, a goal without a plan is just a dream. If you don’t put pen to paper with your goals and the action steps needed to accomplish the goals, they are unlikely to happen.

For example, if you set a goal to pay off a credit card debt of $1500, possible action steps include reviewing your budget to determine the extra amount you can pay each month, no longer using the credit card, and calling the credit card company requesting that your interest rate be lowered.

Finally, you should set up a way to check in on your goals. Depending on the goal this may be either a weekly or monthly check-in. There are many goal planner systems available that can help with this process I have used a goal-setting planner since 2018 to help me organize my goals and hold me accountable to the goals I have set at the beginning of each year. I personally recommend the Cultivate What Matters Powersheets and MaskeLife Planner.

Types of Financial Goals

There are six different types of financial goals. These goal types are 

Income Goals

The first financial goal you should consider setting is an income goal. Income goals focus on ways to increase your monthly income.

Examples of Income Goals:  

Budgeting Goals

Next up for consideration is budgeting goals. Budgeting goals are usually focused on ways to reduce your monthly expenses. 

Examples of Budgeting Goals

Debt Payoff Goals 

The third type of financial goal you should consider setting is debt payoff goals. Debt payoff goals are the most frequently set financial goals set every year. Unfortunately, we oftentimes have to take on debt to be able to afford the expenses of life. Some debts such as student loans and mortgage loans are unavoidable because of the high cost associated with these expenses.

Examples of Debt Payoff Goals:

Savings Goals

According to CNBC, 56% of Americans are unable to cover an unexpected $1,000 bill with money in their savings. An emergency is bound to happen at some point in our lives. You may need to repair your home or car. You may lose your job unexpectedly.  Having money set aside makes taking care of these situations so much easier and hopefully won’t cause issues with your cash flow. 

Examples of Savings Goals:

Investing Goals 

The fifth type of financial goal you should consider setting is investing goals. I don’t believe there is anyone out there that wants to work forever. Setting aside money into investing accounts is the main method available to ensure you have money to live on in retirement. 

Examples of Investing Goals: 

Financial Education Goals

The final financial goal you should consider setting is financial education goals. This goal type is frequently overlooked because we mainly think of goals focused on making more money, saving money, and paying off debts. These goals allow you to expand your knowledge of personal finance. 

Examples of Financial Education Goals

My 2023 Financial Goals

For 2023, I plan to work on the following financial goals: 

Final Thoughts

Depending on where you are in your financial journey will help you determine what areas you should set goals in. If you are just beginning to focus on your finances, only set a goal in one of the categories. Don’t feel like it is necessary to set up a goal in all of these areas. Your focus may primarily be on savings. Set the savings goal. Once you have completed the savings goal you can then move on to a debt payoff or investing goal. Working on your finances is a journey, it is up to you to decide what goals are important to you.

Elevated Life and Money Plan by Nakeshia