What are your financial aspirations for the coming year? Would you like to pay off some high-interest debt? Step up your retirement savings? Set aside enough for an exciting vacation? Below are several wise steps to turn your financial objectives into realistic goals:

1. Create a Budget

It will be difficult to lower your debt or save for your future if you don’t have a clear idea of your current finances and how you’re spending your money. Whether you use a software program or a sheet of paper, set down what you earn and what you spend. In the spending category, include regular items such as rent or mortgage, car payments and other outstanding loans. Next, make accurate estimates about your variable expenses, such as food, transportation, entertainment and clothing. Try to include those easily forgotten expenses, such as the price of lunch at work or stopping for a bottled water or coffee.

2. Look for Red Flags

Now that you’ve listed what you spend each month, consider problem areas. Do you have a high-interest loan or credit card balance? Are you spending a lot each month on takeout meals or entertainment? Think about whether you can make better choices. Just because you can afford certain expenses, that doesn’t mean you are making the best use of your money. If you change bad spending habits or poor choices, you can preserve your cash and use it more wisely.

3. Make Savings Automatic

We all know that saving something each week is a good idea, but we can easily forget to do it. That’s why it’s a good idea to enroll in an automatic savings plan at your bank or a 401(k) plan through your employer. Remember that you don’t have to settle for a low-interest savings account. Some mutual funds accept initial deposits of as little as $50 or will even waive the deposit requirement if you agree to save a certain amount each month. Many people aim to save whatever remains at the end of each month but find that there’s little left. When you designate an amount for automatic savings, it becomes a part of your regular budget and can’t be forgotten.

4. Choose Realistic Targets

Paying off all of your debt is an excellent goal, but it may not be something you can accomplish this year. That’s no reason to give up, however. You can make great progress if you set reasonable targets that are achievable and will also make a difference in your financial life. If you resolve to reduce your debt by 25 percent this year, you might be in a better position to make a meaningful, positive change in your financial situation and gain the satisfaction of accomplishing a goal.

5. Monitor Your Progress

Your aspirations and financial situation may change as the months go by. As a result, review your goals and your progress toward them at least every six months to see how successful you have been and if you need to make changes in your targets, your savings rate or any other factors.

You can achieve your objectives if you understand where you stand now. Chart a course toward your goals and take the necessary steps to reach them. We have the expertise you need to put your financial picture in focus.