Before we go into 2020 with finance goals, it’s important to know where you landed financially in 2019.

Step 1: Do a 2019 year-in-review. To know where you’re going you have to know where you’ve been.

• Brain dump where your money went in 2019. This is crucial to understanding where you spent your money this past year. There is no guilt and no shame! I don’t care where you’ve been… I care where you’re going! Remember to go big picture here, such as ‘bought a new couch’ (ignore the micro, such $5 on paper towels). This is likely to be an eye-opening experience!

• Write down what you saved over the year (what’s the amount in your savings today?).

• Write down what specific debt you paid off, and how much total over the year.

• Write down any investments you made, including retirement, etc.

• Add up the total you spent in all these areas as well as the total you saved. This will help you get a realistic view of where your money went in 2019.

Take an honest look at what you wrote. Did your spending in 2019 match your priorities? If your spending in 2019 doesn’t fit your priorities, you can now determine what you want to do differently in 2020.

Step 2: Plan for 2020

• Write down your priority list for 2020. Write as many things as you want and put them in order of your personal priorities. Be sure that your priorities are driving your spending.

• Write down the amount you will spend next to each priority.

• Write down your savings goal for the year. Determine how much you will save per month, and be sure it is a reasonable goal that you will commit to. Determine by when you want that goal reached (6 months, 9 months, end of the year). Example: Save $12,000 in 6 months. Save $2,000 a month through June. Then that same amount of money goes to your second priority. (i.e., saving $4,000 for a honeymoon). You’ll save $2,000 in July and August – honeymoon done. What’s the third priority? Let’s say it’s paying debt of $6,000. You’ll pay $2,000 in September, October, and November – debt done. Now you have one more month to work on your next priority.

By doing these things, you’ll look back at the end of 2020 and know exactly where your money went! 2020 is your year! It’s the year when every single month you tell your money where it will go! 2020 is the year where every single month your spending reflects your top priority! Every. Single. Month.