What’s changed in your life since you last thought about your goals? Large and small changes can have an impact. It’s important to re-evaluate your goals when life happens. Get engaged? Change your job? Move to a new city? I tend to get comfortable with my goals and budget and fail to re-evaluate when something changes.
When something happens, big or small, make sure you evaluate how that impacts your saving, debt repayment, and goals. It’s a great idea to check in with your budget to see how things have changed. The first step is looking at your money in (income) and money out (expenses). The easiest way to do this is to write down all of your fixed expenses (anything that doesn’t change in cost - car insurance, rent, cell phone) and your variable expenses (groceries, entertainment etc.). Once you have your money in and money out, you can prioritize and set goals for the rest – more debt repayment, retirement savings, saving for a home, the future, travel. These goals will change over time, and your situation (money in and money out) will change too. Re-evaluate every few months to make sure your spending plan still works for you.