Mercer Island Money: Get Fiscally Fit!

Fiscal fitness-just like physical fitness-requires small, incremental improvements and a long-term commitment to your objectives, to be successful. However, if December's Jingle Bells turned into this month’s "jingle bills," your resolve may be tested, and—like a new diet or fitness program-you may just want to give up. Financial success is likely unattainable if you are already considering trading some of your good, new habits for some of your previously unsuccessful old habits. 

If you are honest with yourself, did you really spend the time and energy necessary-this month and last month- to stay on track? If your goals were too lofty, perhaps it’s time to own up to the fact that short-term and small successes are more appropriate at this time. If your goals were easily achieved, maybe you need to add to your financial goals. Or, perhaps your goals were “just right”-not too difficult, and not too easy. If your goals were “just right,” keep doing what you are doing and acknowledge the fact that you are making progress. Remember, progress-not perfection-is what you are seeking.

Did you focus on reducing any leftover debt you may have incurred due to your financial feast, in December?

One thing to take into consideration-during your evaluation-is your values. In fact, this might be the most important step in your overall financial plan. Planning from the inside-out is what I like to call it. Prioritize your values and then focus on how your money can support you to live the life of your dreams. Your dreams will become a reality if you have a clear vision of what it is you are trying to achieve and-more importantly-WHY you are trying to achieve those goals.

Action Item(s): Spend some time thinking about the things you value most in life and how money supports your values. Then, evaluate if your goals are in line with your values. If not, revise your goals and make them “just right” for you. This is not a competition with anyone else-these are your goals, your values and your life. Then, take small steps-today-to achieve your goals. Remember, small steps, today, will yield significant dividends in the future.