The new year is a great time to examine your goals – and to make sure you're getting the information you need to help achieve them. Whether you're looking to buy a new house or a new car, or even to find a new job or career path, it's always a good idea to take a look at your finances and make sure you have a plan in place to accomplish your goals. For many, the two biggest questions to resolve as you find your financial footing are knowing where to start and assessing where you are.
"Share your goals with someone you trust to check in with you along the way," suggests Molly Barackman-Eder, director of financial capability for NeighborWorks America. "Trained financial coaches can serve as accountability partners to check in with you and reflect on your goals. If something has come up and you haven't made as much progress as you had hoped, a coach can help you think about what you might want to change to get back on course." If you need to rethink goals, they can help with that, too, she adds. And you can find those coaches at NeighborWorks America's network organizations. The local nonprofits have counselors on staff that can help individuals and families develop a financial plan and plan for the future. “ NeighborWorks America has nearly 250 network organizations, which are located in every state, Washington D.C. and Puerto Rico. Of those 250 network organizations 166 are HUD-approved Housing Counseling agencies. In the most recent network report, 162 agencies have reported having at least one certified counselor. The NeighborWorks network represents over 533 HUD certified housing counselors, with more on the way.
Tavia Watson, who works at Origin SC, a NeighborWorks network organization in Charleston S.C., places motivational notes around her home to remind herself that she can achieve her goals. She recommends that her clients do the same. "In the morning, when you wake up, the first thing you do is look in the bathroom mirror," says Watson, a housing manager, workshop facilitator, and HUD-approved credit counselor. On her own mirror, she keeps a note that says, "I am determined to give it my all." "Put something up that will stand out, whether it's an inspirational quote or a goal," she advises. "It helps you stay connected to your goals and to remind yourself of why you've set them." Her posts include affirmations like, "You can do this," and "Failing is not an option."
Watson offered some New Year's advice:
• Examine the goals you've set for yourself. "I always encourage people to do this at the first of the year," Watson says. "Look at your short-term goals and longer-term goals. Whether it's home ownership or saving for a vacation or a car, you have to arrive at a goal and work on a plan to how you're going to achieve it." Track your success, she adds. That could mean creating a simple checklist or using a phone app.
• Take a class. Many NeighborWorks network organizations offer classes on budgeting and credit building. And NeighborWorks itself offers classes that train housing professionals in best practices, including at the upcoming Virtual Training Institute. Watson says that this year, Origin SC is adding to its calendar an event called "Table Talk Tuesday," where individuals in the community can talk about barriers to their financial freedom and ways to get through them.
• Go easy on yourself. If you get off track or deviate from your plan – or any resolution – remember you can always get on track again. "People need to be encouraged," Watson says. "Get someone to motivate you. Follow social media or blogs that might help."
• Find a HUD-approved counselor in your area. Connect with a HUD-approved agency that can offer financial literacy support, be it for credit improvement or financial freedom, Watson suggests.
• Beware of scams. Sometimes when people are making resolutions and focusing on the future, they're not as vigilant as they need to be about the present, Watson says. But scams, fraud and identity theft can harm your credit and lead to even bigger problems. NeighborWorks America established the Stop Home Scams initiative to help build scam awareness and prevention.
• Start the year with a budget. It's good to know what you're looking at heading into a new year, Watson says. It's also good to start saving early.
• Get to know the people at your bank. Often a bank can be a good resource, but Watson finds her clients need to be more connected.
• Take baby steps. You don't have to do everything at once. Try meeting some smaller goals to show yourself you can do it. "I tell people, ‘If you don't ever start, you're never going to finish," Watson says.
