As a new year arrives, it’s usually a great time to reflect on the past and set goals for the future. While the a raise or promotion may be a common goal, it’s so important not to get discouraged because believe it or not- your financial success isn’t determined solely by climbing the corporate ladder. That’s right: not getting a promotion will not prevent you from living a financially fruitful life. So, if you’re not in the financial position you were hoping to be in at the end of the year, there are so many financial goals you can create to improve your financial well-being in the coming year. There have been so many times I have set goals without a raise or promotion, and looking back they have helped me so much more than earning a promotion.
Setting Goals Without a Raise or Promotion
Boost Your Emergency Fund. One of the first and most critical financial goals to set is building or bolstering your emergency fund. An emergency fund acts as a safety net, providing financial security in times of unexpected expenses or job loss. Aiming to save at least three to six months’ worth of living expenses can be alot, so start small. If you have multiple financial expectations (debt, child support, etc.) start saving in manageable chunks and grow your savings over time. Having a emergency fund has given me a huge peace of mind and prevented me from relying on credit cards or loans during unforeseen circumstances.
Find a Way to Reduce Debt. If you have outstanding debts, the new year is an excellent time to prioritize paying them off. Create a thorough debt reduction plan by organizing your debts, focusing on high-interest debts first, and allocating a specific portion of your income to debt repayment. This not only improves your financial health but also reduces the stress associated with financial obligations.
Create a Side Hustle. Boosting your income doesn’t always have to come from your primary job. Consider acquiring new skills or enhancing existing ones that can be monetized through side hustles. The gig economy offers numerous opportunities, from freelancing to online tutoring, and having multiple income streams can significantly improve your financial situation. Working part time or building a side hustle that generates even a small amount of revenue can be helpful in paying off debt or fast tracking investment opportunities.
Budgeting and Expense Tracking. Take a closer look at your spending habits by creating a realistic budget. Identify areas where you can cut unnecessary expenses and redirect those funds towards your financial goals. Utilize budgeting apps or spreadsheets to track your spending and ensure you stay on course throughout the year. As we head into the new year, Kurt and I are taking time to review our budget as well. Do we need the highest level Peloton subscription? Are we eating out too much? It never hurts to review your budget to help you stay on track and keep you track with your goals.
Negotiate Non-Monetary Benefits. If a raise or promotion is off the table at the moment, explore other non-monetary benefits that could improve your overall financial picture. This might include flexible work hours, remote work options, professional development opportunities, or additional vacation days. Negotiating these perks can contribute to your work-life balance and indirectly enhance your financial well-being. There have been a few times when I’ve asked for a raise and would hear back ‘we just don’t have it in the budget this year to pay you more’. Countering with other benefits or tasks that would look great on my resume were great temporary fixes for me. There are so many other benefits that you can ask for while figuring out your next steps.
Continued Education for Professional Growth. Investing in your education and professional development can be a strategic way to position yourself for future promotions and salary increases. Seek out relevant courses, certifications, or workshops that align with your career goals. Demonstrating a commitment to learning and growth can make you a more valuable asset to your employer. If your job can pay for an advanced degree or extra certifications, I’d highly advise you take them up on that offer. A degree or new skills you aquire will stay with you, even when you leave the job that helped pay for it.
Like I’ve said before, there have been so many years when the salary from my 9-5 job isn’t want I thought it would be at the end of the year. It was so discouraging going into a new year not making the money I’d want to make, or not being able to save more or splurge on a nice vacation. While the absence of a raise or promotion may be disappointing, it’s crucial to recognize that there are so many financial goals you can set and achieve independently. By focusing on building an emergency fund, reducing debt, diversifying investments, developing new skills, budgeting effectively, negotiating non-monetary benefits, and investing in your professional growth, you can take significant strides toward financial success in the new year. Remember, financial wellness is a journey, and with thoughtful planning and perseverance, you can achieve your goals and secure a brighter financial future.