Up the odds of meeting money goals this year

With a new year ahead and the holiday fanfare behind, this is a great time to set money goals, especially if you recently spent a lot on gifts and travel and want to get your finances in shape.

Right now, you may be highly motivated to solve every single one of your money issues in the next few months, but daily life is guaranteed to get in the way. Your financial to-do list, once so full of promise, can eventually get stuffed in the back of a drawer while you manage more pressing matters.

So how can you improve your odds of success? It comes down to accepting that you won’t have the time or energy to complete every task to perfection. Creating a system where you can prioritize, plan and hold yourself accountable can help.

Take high-impact action

Many start by setting a goal to trim frivolous costs, which can certainly be helpful, but there are other ways to make a big difference. Taylor Schulte, a certified financial planner and founder of Define Financial, an advisory firm in San Diego, recommends starting with a few overlooked financial tasks.

Freezing your credit is a quick, easy way to guard yourself against identity theft. It’s free to do, and you can temporarily lift the freeze when you’re applying for a loan or credit card. Schulte also suggests looking into umbrella insurance, which offers additional coverage beyond what your auto, homeowners and other insurance policies provide. This coverage can spare you from massive out-of-pocket costs in the event you get sued.

Basic estate planning, including creating a will, is another thing to put high on your list. Putting off this task can create a major headache for your loved ones if something unexpectedly happens to you. “I know it’s a pain point and it’s often kicked down the road,” Schulte said.

Paying attention to your spending is always important, but take steps to protect your money, yourself and your loved ones.

Focus on what matters

So many money goals are born out of social pressure. You “should” want to save up to own a home, even if you’re happily renting. You “should” sacrifice short-term needs and wants to stash away as much as possible for retirement, even though it leaves you feeling deprived. But money goals should be tied to the things that matter most to you. If they aren’t, you’ll quickly lose interest.

You can combine goal-setting with a little planning, so expenses are less likely to creep up. Think about what expected costs will be coming up in the next six to 12 months, like recurring bills, vacations, anticipated home or car repairs, and other expenses. This approach allows you to set money aside each month to put toward planned costs, as well as longer-term goals.

Hold yourself accountable

Forgetting your goals can be far too easy, so to make something stick, write it down. It can be as simple as a handwritten list you keep on the fridge, or online calendar reminders that will nudge you every so often.

For time-sensitive goals, set deadlines. Make multiple lists based on what you need to complete within the next week, month or three months. As time passes and you check off items, you can update the list.