Now that 2022 is here, it’s time to start thinking about your financial goals.
Many of us are hopeful that this will be the year we pay off debt, save more money, and start investing. However, without achievable goals and the tools we need, it could be difficult to get there.
Luckily, the Digit app can help you stay on track and reach your financial goals in 2022.
Figuring Out Your Financial Priorities
In order to achieve your financial goals, you need to first establish financial goals. And for many of us, setting realistic goals is easier said than done.
Luckily, I have a process for setting financial goals that puts me on the right track every time.
First thing’s first, ask yourself what you want your money to do for you this year. I like to start by ranking these big picture financial goals in order of importance:
- Saving for a life event (wedding, vacation, moving, etc)
- Establishing an emergency fund
- Building up sinking funds (non-monthly expenses like Christmas, car repairs, and back to school)
- Paying off debt
- Spending money (big spending goals or day-to-day spending)
(And yes, spending money is absolutely a valid financial priority. You work hard for your money, so there is no shame in wanting to spend it on things that bring you joy.)
Once you rank them in order of importance, you can use that list to help create short, medium, and long-term goals.
The BEST Goal Setting Method
I don’t know about you, but for the longest time, I struggled to create goals that I could actually accomplish. They all felt more like dreams than true goals.
Luckily, I learned about the SMART goals method.
SMART goals were created by George Doran in 1981 to create a better system for writing management goals, but they can be used in any type of goal setting.
SMART goals are:
To utilize the SMART goals method, write down 3-5 short, medium, and long term financial goals that answer the following questions:
Specific: What are the details of your financial goal? (use numbers for best results)
Measurable: How will you know you reached this goal?
Attainable: Do you have the knowledge, tools, and skill set needed to reach this goal?
Relevant: Does this line up with your financial priorities?
Time-Bound: When do you want to reach this goal?
Creating financial goals that tick the boxes of the SMART goals method will help you to stay on track and evaluate your progress throughout the year.
Using Digit To Reach Your Financial Goals
Now that you’ve set achievable financial goals, it’s time to go about actually achieving them!
Digit splits your money into 3 different categories:
(bonus: it will also invest for you, based on your goals)
And the best part? Once you tell Digit what your financial goals are, it will help you get there by automatically moving money around for you!
Pay Your Bills On Time
Late fees and missed payments can be huge setbacks on the road to achieving your money goals in 2022. That’s where Digit has you covered with Bills.
Tell Digit when your bills are due and how much you have to pay, and it will automatically set money aside throughout the month to cover those expenses. When you’ve got the money on hand to pay that bill, Digit will let you know.
Pro tip: set up autopay for your bills and link them to your Direct Bills account, then Digit will update your budget as those expenses automatically come out.
No more wondering if you’ll have enough money to make rent on the 1st!
My favorite part about Digit’s bill organization system is that you can hook up your credit cards so Digit has up to date balance information. You can choose to save for the current balance, statement balance, minimum payment or another amount you set and Digit will help you save for the bill throughout the month. This is a game-changer for getting out of, and staying out of, credit card debt!
Reach Your Savings Goals
This is the one we probably all struggle with the most. “HOW do I reach my savings goals and actually KEEP money saved instead of spending it?” Luckily, all you have to do is tell Digit what goals you’re saving for.
Want to take a vacation this year? Tell Digit to save $2,000 for a Costa Rica beach vacay.
Know that your car is on the fritz? Tell Digit you want to save $4,000 toward a new car.
Reference the SMART goals you just made as you’re telling Digit what you want to save for. (I also highly recommend starting with 3-5 savings goals to avoid over-complicating your finances).
After that, Digit will automatically set small amounts of money aside toward each goal. And at any point in time, you can open the Digit app to see how much you have saved.
This is incredibly motivating and helps you stay on track with your finances throughout the year.
Spend Money Consciously
Like I mentioned earlier, there is nothing wrong with spending your hard-earned money! The goal is to spend money in a way that doesn’t interfere with your other goals.
Luckily, Digit will send you daily notifications letting you know how much you have in your Spending account so you can make smart spending decisions. This is all while working for you in the background to reach your saving and debt payoff goals.
This way, you can spend money on things that bring you joy with the peace of mind that you’ll still be able to pay your bills and save money.
Follow me @theavocadotoastbudget and let me know how Digit helps you reach YOUR goals this year!
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