As the New Year begins, many of us start thinking about the goals we want to achieve. While setting goals is important, I want to challenge you to rethink how you approach them. Too often, we focus on the outcome without considering the process that gets us there. As James Clear writes in Atomic Habits, “We do not rise to the level of our goals; we fall to the level of our systems.” This year, don’t just set goals, build systems to support them. In this article, I’ll share a few common financial goals and one popular personal goal, along with practical systems you can use to achieve them. By focusing on systems, you’ll create habits that not only help you reach your goals but keep you moving forward long after you’ve achieved them.
One of the most common financial goals is to save or invest more money. It’s a great goal, but without a system, it’s easy to lose momentum. Start by getting clear on why you’re saving. Is it for a big purchase like a car or home, or for a long-term goal like retirement? Once you know your purpose, calculate what’s realistic. Review your income, expenses, and decide on a savings rate. An example of your savings rate could be 10% of your take-home pay. Next, make sure the account you choose matches your goal. For short-term savings, you’ll want an account that keeps your money accessible, like a high-yield savings account. For long-term goals, consider accounts designed for growth, such as retirement or investment accounts. To make it effortless, automate your contributions so you don’t have to think about it each month. Finally, check in periodically to review your progress and adjust as needed. This system gives you a clear, sustainable path to reach your goal.
Another common financial goal is paying off debt. Start by listing every debt you owe, balances, interest rates, and minimum payments. Seeing the full picture helps you create a clear plan. Next, choose a payoff strategy: the avalanche method, which targets the highest interest rate first, or the snowball method, which focuses on the smallest balance to build momentum. Whichever you choose, always make minimum payments on all debts and direct extra funds toward your priority debt. To accelerate progress, look for ways to cut unnecessary expenses or increase income and apply those savings to your debt. And while you’re paying down balances, avoid taking on new debt. One way to help protect yourself is by building an emergency fund for unexpected expenses, so you don’t have to rely on credit cards or loans when life happens. By creating a clear system for paying off debt, the path to achieving this goal becomes far more straightforward and actionable.
A popular personal goal for the new year is getting in better shape. While most of us agree this goal is worthwhile, sticking to it can be harder than it sounds. Start by defining what “better shape” means for you – losing weight, building muscle, improving endurance, or simply living a healthier lifestyle. Once you know your direction, measure where you are now so you can track progress. Then, create a plan that covers nutrition, exercise, and sleep.
To increase the success of your plan, focus on reducing friction between you and the actions you need to take. If cooking feels overwhelming, try a meal prep service or batch your meals for the week. Lay out your workout clothes the night before or schedule workouts like appointments. These small adjustments can make a big difference. Finally, track your progress and adjust as needed. A good system keeps you moving forward, even when motivation fades.
The New Year brings a fresh start and endless opportunities, but goals alone aren’t enough. Success comes from the systems you build to support those goals. Whether you’re saving money, paying off debt, or improving your health, a clear system turns good intentions into consistent action. Focus on creating habits and processes that make progress inevitable. When you do, you won’t just reach your goals, you’ll keep moving forward long after you’ve achieved them.
-by Jacob Young, AAMS®
Financial Advisor, RJFS
313 East 10th Ave.
Bowling Green, KY 42101
Phone: 270-846-2656
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