AVID Chat #59: Reviews and Resolutions

Outline:

0:50 Self review
2:13 Why is it important to review previous goals set?
3:27 Understand that you may not reach your goal - Kobe Bryant example
4:23 New Year's Resolution trap - you can set a new goal at any time!
5:07 Values-based and SMART goals
7:33 Do you have meaning and purpose behind your goals?
11:51 The purpose is the value!
13:46 It's a cyclical process
14:56 Here's what you can do right now

We are kicking off 2022 with an AVID Chat that focuses on setting resolutions, and how to review your past year.

At AVID, our #1 question to clients and ourselves each year is:

How are we improving?

Looking back on 2021, it’s easy to get caught up in the details of what worked and what didn’t in your financial life and otherwise. More often than not, this type of review turns negative. We naturally focus on what we couldn’t control, or the goals we didn’t hit.

However, if you look at the big picture of how you improved, and what prevented you from hitting your goals, you’re able to adjust to set more realistic resolutions for 2022.

When you set new goals with the knowledge of how last year went, you’re able to:

Set realistic goals for yourself and your financial life.
Set stretch goals that push you outside of your comfort zone.
Align your goals with your values to make them more motivating.

Let’s look at a non-financial example we review in this episode:

In 2021, you meant to work out more to get in better shape, but it felt like life was always too busy.

In 2022, you know you value your family, and successfully coaching your son’s soccer team. However, your son plays soccer, and you find that when you practice with him, you’re quickly out of breath.

This year, you decide to align your goal of getting in better shape with your deeply held value of family and setting a good example for your son. You set a realistic goal of running 1-3 miles a few times a week before work, and heading to the field a bit early with your son to run sprints and do a quick workout together. Your stretch goal is to work out at the gym a few times a week on your own.

You’ve done a few things when setting this goal. You evaluated what didn’t work last year (not having enough time), you set a more reasonable goal that was connected to your values, and you came up with new tactics (like stacking your habits of doing a workout with your son before a practice you already attend) to stay on track.

You can do the same with your finances. For example, if you’re wanting to increase your savings, start by connecting it with a value. Here’s how that could look for this year:

You wanted to save more last year, but you got off track and didn’t hit your goal.
You know you want to build up a stronger savings to feel more confident before buying your dream home and starting a family.
To stay on track this year, you make a list of potential tactics. These include automating savings contributions, budgeting in “fun” expenses (like travel) so that you don’t feel deprived, and setting a more reasonable savings goal for yourself that feels achievable.

Are you ready to dive into setting your financial goals (and staying on track) in 2022? Reach out to our team by clicking here: https://avidplanning.com/contact

Referenced: AVID Chat #47 - https://youtu.be/9yGFobdluFQ