As we prepare to close the books on 2013, there is always a great deal of reflection of the past year and anticipation for the coming year. We’ll look back and remember the good times, and reflect on the bad times. We’ll consider our shortcomings and make promises to ourselves for the next year. We’ll often make resolutions for the coming year. A good number of us will resolve to work out more, work at our jobs less, enjoy friends and family more, travel more, and worry less. What about a financial goal? Our finances, for many of us, aren’t at the top of our lists when making our New Year’s resolutions. They should be, and I hope that after reading this post, you’ll have a financial goal for yourself.

I hope that you won’t just set any old financial goal for yourself; I would encourage you to set a BHAG. A BHAG is a Big, Hairy Audacious Goal. It’s something so farfetched that people might laugh at you when you tell them about it. “I’m going to get debt free in 2014” or “I’m going to contribute 15% all year to my retirement”. Crazy talk! How in the world are you going to achieve those goals? It might almost seem not worth making the goals if they are so unlikely to be attained. False. What’s the old saying about shooting for the moon? Oh yeah, if you miss at least you’ll land in the stars. Don’t set simple goals for yourself just so you can cross something off your list and feel good about yourself. Set a goal that you’ll actually have to work hard for. Set a goal that would be awesome to achieve and let yourself get fully committed to it.

What’s my BHAG in 2014? Buying a house. Crazy, I know. I’ve been out of school for 2.5 years. My wife still has some college debt to payoff. Our emergency fund is good, not great. I’m not saving as much for my retirement as I’d like. We’re completely new to the real estate market here. There are a lot of things stacked up against us. For me to achieve this goal, I’ll have to really focus and control my expenses. I’ll have to remember that I’m buying a house if I get a bonus this Christmas and if I get another raise at work. I’ll have to focus my mind on that house whenever I feel like splurging at the store or when I go out to eat.

Having an ambitious BHAG will help keep you focused. It’ll help keep you on track because the only way you’ll achieve it is by staying on track. Your BHAG will start to be a major focal point in your life. You’ll dream of it when you go to bed at night and plan for ways to achieve it when you wake up in the morning. When tempted to get off track, it’ll pull you back in. “Sorry, don’t think I’ll be able to make the MLK weekend Ski trip. I’m trying to pay off my student loans this year.” A BHAG will be your focus and will keep you on track.

Take control of your finances and let 2014 be the year in which you are able to look back with pride. ‘I paid off $10,000 of my student loans in 2014’. ‘Wow, that’s crazy, how did you manage that?’ A BHAG. Set a Big, Hairy, Audacious Goal for yourself, one that will take focus and a lifestyle change to accomplish. Come up with a plan to make it happen and let the beauty of achieving the goal keep you focused. Let 2014 be a big year for you!

Feel free to leave a comment with your 2014 BHAG, we’d love to know what it is and help keep you on track!

Happy New Year from YMF! Here’s one other article you might enjoying reading:

Keeping up with your New Year’s resolutions