The new year is just around the corner, making it the perfect time to tackle your finances and set clear goals. Many start the new year with big resolutions, but there is often no right strategy to actually implement them. But how do you define goals, track progress and implement them sustainably — especially with regard to your finances — so that it doesn't just stick to the New Year's resolution?

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Why you need financial goals

Setting financial goals gives you direction and motivation. Without clear goals, it's easy to lose track or get bogged down in spontaneous spending. With a plan, you can use your money in a targeted manner and get more out of your finances in the long term. Whether it's reducing debt, saving for a big trip, or creating financial security — every goal takes you a step further.

Psychology clearly shows that people make decisions more easily and implement them even when their goals are clear. Defining goals is therefore an important step for you to get started.

How do you set goals

The key to successful goals lies in their structure. So take a very strategic approach:

1. Collect all goals

Write down any financial goals you have — whether short term, medium term or long term. Collect everything: from a new winter jacket to the dream of owning your own home. You can also get creative and, for example, create a vision board on which you visualize your goals or collect motivating, inspiring quotes.

2. Formulate SMART goals

Once you have listed all goals, it is important to formulate them as specifically as possible. Because goals that are too vague (e.g. “more sport” or “finally invest”) reduce the likelihood that you will achieve them. One best practice for formulating goals is the SMART model. This is how you formulate your goals:

• Sspecific: Be clear and specific. For example, instead of “Save more money,” you say “I'll save 5,000 euros by the end of the year.”
• MEdible: Define how you can measure progress.
• AAttractive: Your goal should have real added value for you.
• Realistic: Set yourself achievable goals that fit your financial situation. If you can't save more than €50 per month, then 5,000 euros will probably not be achievable at the end of the year. It only leads to frustration. So avoid!
• TDetermined: Give your goal a deadline. When do you want to achieve it?

An example would be: Instead of “I want to save,” say: “I'm setting aside 200 euros a month until December 2025 to have 2,400 euros for my nest egg. ”

3. Prioritize according to importance and urgency

Not all goals are equally important. And you probably don't have (enough) budget for all goals. Sort them by:

• Importance: How much does the goal influence your quality of life or financial security?
• Urgency: How quickly must the goal be achieved?

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This prioritization helps you to distribute your budget efficiently. If your budget is limited, you can postpone less urgent goals or adjust the target date (backwards).

Pay attention to what is important to you and don't let external expectations influence you too much.

Steps to address your finances

In order to achieve your goals, you need a solid financial basis. But maybe one of your goals is simply to finally organize your finances or start with your finances. There are basic steps for this:

1. Reflect on your money mindset
   Your attitude towards money influences your behavior. Think about what beliefs drive or block you. Do you think saving means giving up? Or do you see it as an opportunity for more freedom? Knowing the answers to these questions helps you move forward.
2. Create a financial overview
   Create an overview of your income and expenses. Use budget book templates, apps or simply Excel spreadsheets to make your finances transparent. This allows you to see how much you can save and where you can save. You can also create a general balance sheet in parallel — for a complete financial overview. Such an overview also has a positive effect on your financial well-being — your financial well-being — because it creates control and therefore a sense of security.
3. Save nest egg
   A nest egg is essential for financial security. The rule of thumb is to build up 3 to 6 months' salaries as a reserve. Your financial buffer can vary depending on your life situation and needs, or even just include your fixed costs. Define for yourself how you want to be covered for financial emergencies or how much financial security you would like to have with it, for example to quit your job if you don't like it.
4. Know your options
   After you have created your financial basis, there are many ways in which you can make provisions and build up your wealth. Find out about savings and investment opportunities. From call money accounts to ETFs and stocks, there are many ways to grow your money. This also raises questions such as “Investing in what? ” or “How much money to invest? ”. This is where it helps to build up financial knowledge so that you can make the right decision for yourself and your life with regard to your individual finances and goals.
5. Basis created & informed? Then start saving and investing
   Getting it implemented is more important than waiting for the perfect moment. So you can also start with small amounts and adjust them flexibly later. In the end, the key is continuity. By taking small steps, you can also slowly build up your knowledge. More experience also provides more security. This makes it easier overall.

How to meet your goals

Setting goals is the first step. Clean up your finances and lay the foundations, ideally the second. But how do you ensure that you achieve your defined goals?

1. Create routines

Establish habits that bring you closer to your goals. Here you can Money Dates help. In doing so, you set yourself fixed dates to check your finances. For example, once a month to keep track of income, expenses, and progress.

But also automation may be helpful. Standing orders for savings make it easier to remain consistent. Pay yourself (your future self) first. That way, you don't have to hope that there will be money left over at the end of the month that you can put aside.

2. Track progress

Use apps or a simple notebook to track your progress. Making success visible motivates you and helps you make adjustments when necessary.

3. Maintain motivation

Always remember why you want to achieve a goal. Reward yourself for stage successes, such as with a “little luxury” (such as a delicious piece of cake), when you've made the first savings or reached a milestone in terms of your savings goal.

Your financial year 2025 can come

The new year is the ideal time to restructure your finances and get started with clear goals. With the right planning, effective methods such as SMART and regular money dates, you will be able to implement your resolutions in the long term.

So get on with it — and make 2025 your most financially successful year.

Our financial app can also help you with this.

In our app, you can learn about money and finances, e.g. money mindset or invest money, define your goals and overview your finances. You'll find helpful tools for this, such as a budget template or a budget planner. This allows you to easily take the first steps towards financial independence — at your own pace, based on your current life situation and level of knowledge through your individual journey. Goodbye info overload and overload, hello financial health.

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