July 29, 2020

Having a baby changes everything. It also changes your short and long trem financial goals. If you don't have a plan, get one. Sit down with your partner and an old-fashioned paper and a pencil and determine your budget. Enter it into your budgeting app later. Talk about it.

We hear, all the time, about how important it is to set money goals.

But what happens if your money goals no longer make sense?

There's nothing wrong with changing your money goals. In fact, it makes sense to review your money goals regularly to get an idea of where you stand, and whether or not your goals still make sense for your situation.

Are You on the Right Track?

One of the best reasons to review your money goals and change things up is if you're on the right track. Are you headed in the right direction? Have you made good progress toward your priorities?

If you had a goal to build an emergency fund of $10,000, and you are at $7,500 because you've been setting aside $500 per month, you might want to change things up. Perhaps you want to put more into retirement. If you have made solid progress and are on the right track, you might be able to divert $250 to boost your retirement, and keep the other $250 building toward your emergency fund goal.

You will be moving slower toward one goal, but picking up the pace on another goal that you find important. Changing things up when you're on the right track can be a good way to make solid improvements overall.

Have Your Priorities Changed?

Sometimes, when we set money goals, we do so with certain priorities in mind. What happens when those priorities change? You need to change your goals to match your new direction. There's no reason to keep reaching for objectives that no longer matter to you.

Every now and then it makes sense to review your money goals and determine whether or not they match your current lifestyle expectations. I had to review my own money goals recently. I changed some of my objectives to match with the fact that I have a new trajectory to my life. Abandoning a goal because it no longer fits isn't a failure. It's recognizing that life throws you curveballs and sometimes you need to course-correct in order to continue progressing.

Be Careful About Changing Your Money Goals

It's important to be careful about changing your money goals, however. You don't want to switch things up just because things are difficult, or because you are temporarily distracted by something else. It's important to carefully consider the reasons that you plan to change your money goals. Honestly examine yourself to figure out what truly makes sense in your situation.

Don't change your goals to match someone else's idea of what you should be doing. Additionally, don't change things due to panic or euphoria. Either of those emotions can cloud your judgment. Instead, take stock of where you stand and what you hope to accomplish.

Your goals should reflect your long-term lifestyle aspirations and expectations, and provide you with a practical roadmap to reaching your destination. Regularly review your goals to make sure they still reflect your priorities and expectations. And if they no longer do the job, switch them out for goals that are more in line with your future.

Written by Miranda Marquit for MoneyNing and legally licensed through the Matcha publisher network. Please direct all licensing questions to legal@getmatcha.com.

Your diapering selections are part of your budget. You can save money using cloth diapers but you can also get caught up in the cuteness and spend more than you need to spend. If your budget allows that, great! Enjoy the fancy ones. If not, don't get sucked in to overspending. Instead, just enjoy what you can afford and most of all, enjoy your baby.

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