Most people have personal financial goals that they hope to achieve at some point in their lives, but the challenge is that it’s hard to get started.
If you’re like most people, your life is too busy, and you just don’t have the time to accomplish your personal finance goals. You’ll say to yourself, “I’ll get to it later.” The problem with that mindset is that you never get started, and you never accomplish your goals.
In previous articles, we have discussed about how to save money, increase your savings and building a solid financial plan. We have also talked about the importance of taking control of your personal finances and how you can achieve it.
However, creating a financial plan is not enough. You need to take action and make a change. If you want to achieve financial freedom, you must take action today. You can’t wait until tomorrow or even next month. You need to create goals and stick to them.
The first step to reaching your financial goals is to identify them. If you don’t know what you want or where you’re going, then how can you plan a course of action to get there? Setting goals in personal finance mastery test is crucial to achieving your dreams.
There are two types of personal finance goals, long and short term goals. Long term goals are the big picture goals that may take years to accomplish while short term personal finance goals are immediate finance expenses.
So, what are some examples of long term financial goals?
Examples of personal finance long term goals include retirement planning, paying off a mortgage, and saving for your child’s college fund.
Examples of Short term financial goals include paying off credit card debt payments and vacation expenses.
To identify your financial goals, ask yourself the following questions:
What is my current net worth?
How much money do I want to save each month?
What is my ideal monthly income (before taxes)?
What do I really want out of life? (Dream big here!)
Do I want to buy my own home?
To create a goal that is achievable, one needs to applying-smart-goals-to-personal-finance. SMART is an abbreviation that stands for (Specific, Measurable, Attainable, Relevant, and Timely) .
So what are some personal smart goals?
Some examples of personal SMART goals (Specific, Measurable, Attainable, Relevant, and Timely) include budgeting to buy a car, eliminating credit card debt, and creating an emergency fund.
This article provides personal finance goals that you can accomplish this year.
Make Your Money Work for You
One of the best ways to achieve your financial goals is to make your money work for you. To do this, you need to use your money to earn more money.
For example, if you have $500 dollars in your checking account, consider making a $500 investment. If the investment earns 10% interest, you will earn $50 dollars in interest. Next year, you can invest $550 and earn $55 dollars. This can be a personal finance goals for college students.
As you continue this strategy over time, your investments will continue to grow and earn more interest. In this way, your money will work for you.
Another way that you can make your money work for you is to save it in a tax-advantaged manner.
The budget is a financial tool that helps you to plan your spending and your income in a clear and objective way. It allows you to save for specific goals, gives you a clearer idea of where all the money goes and helps you to achieve financial objectives.
In short, it allows you to have a clear vision of your financial path and your future. This is why it is so important for financial success and the consolidation of your savings.
You should start budgeting for your small personal finance goals. Small goals are usually the stepping stones to larger goals, such as paying off debt or saving more money.
A budget is one of the best tools for achieving financial freedom. You can’t say you have a budget if you don’t have a goal. A budget is only as good as the goal you’re working towards.
Without a goal, your budget can lead to a lot of short-term thinking and give you a false sense of security. A budget can help you figure out if your spending is getting you closer to your goals or whether you need to make some changes.
You can start with small goals to give you a boost and help you get on the right path. These goals can be saving for a vacation, saving for a new car, or just saving to buy some new clothes. When you set a goal and work towards it, it is very satisfying.
“The sum of all your small decisions can either make or break your financial future”.
It may sound like a cliché, but it’s also true. A lot of people are good at making the big decisions when it comes to their financial future, but they’re not very good at making the small decisions that are just as important.
If you are one of these people, then you are likely wasting your hard-earned money on unnecessary things that drain your bank account. But don’t worry. We’re here to help.
“Saving for a goal is a way to motivate yourself to save money. These goals can be something you want to buy, a vacation you want to take, or a money amount that you want to have in savings. Saving is an example of financial goals examples for employees.
For example, if you have a goal to save $5,000 for a new car, you might need to cut back on your spending and increase your savings. Our 52-week Money Saving Challenge Guide following will help you set a goal and create a plan to achieve it.”
Investing is a difficult subject for a lot of new investors. Investing is a complex subject, and there are many traps for new investors to fall into.
Investing is a difficult subject for a lot of new investors. Many investors don’t know where to start, and they get lost in the complexities of investing. Investing can be simple, but it’s not easy. The more you know about investing, the better you will be able to protect yourself from the traps that get many people into trouble.”
The more you know about investing, the better you will be able to protect yourself from those traps. Investing money is a long term financial strategy.
It is a good practice to invest a part of your income every month if you want to grow your savings and make smart financial decisions.
Pay off Debt
Debt is a huge problem in the United States. The average household credit card debt is $15,700. The average student loan debt is $27,000.
The average mortgage debt is over $150,000. I’m sure you can guess what the average debt for all three types of debt combined equates to: $155,000.
That’s the average American household credit card, student loan and mortgage debt combined. And that’s just the average!
That’s a lot of money to owe. Yet, as a society we tend to treat debt as a necessary evil. We believe that there is no way to live the good life without taking on some debt.
We don’t see any way to purchase a home or an expensive car without getting into debt. We also tend to think that taking on credit card debt is a normal part of life and that we can easily pay it off using more debt.
The first personal finance goal you should set is to pay off debt. Debt is a weight that can be difficult to carry. Depending on your debt situation, it can feel like a ball and chain dragging you down. This is a financial goals examples for students.
It’s not just the interest payments that are taking a chunk out of your income, but the stress of worrying about how you’re going to pay for things can be just as devastating.
The good news is that paying off debt pays dividends in two ways: you get to stop worrying about how you’re going to meet the interest payments and you get to improve your financial status.
The cost of education is considered crippling given that most people have to use college loans to pay for tuition. This may seem unattractive, particularly because paying off the college loans is considered one of the most significant personal finance goals.
However, higher education can prove beneficial particularly for someone looking to increase their multiple income streams through service provision.
Investing in college tuition is one of the significant personal finance goals that you can budget towards. With the age of e-learning, you can access cheaper college options from local and international universities.
Planning for your retirement should be one of your main financial goals. Most people often put off saving towards retirement because they believe it is a futuristic achievement that could be accomplished.
However, the available retirement fund options provide the advantage of compound interest that could help you create a viable and sizable retirement fund which will help you during your old age.
Before, you decide on the retirement option that you want, you should research on the accounts and benefits of each one. For instance, some employers offer retirement matches to employee contributions. This means that your employer would match all your contributions.
If you have not began saving for retirement, employment match options can be good options that will help you cover up for lost time. Additionally, the two most common types of retirement saving accounts: Roth IRAs and 401 (K)s each offer different advantages that are suitable for different employee contributions. Our article on TRADITIONAL 401(K) VS ROTH 401(K) provides an overview of these retirement accounts.
Buying a Home
Home ownership is a personal finance goal that most people strive for. Contrary to popular opinion, this goal is not for everybody.
Before you decide to buy a home, you should make sure that you can afford it and that it is beneficial for the long term. If this is a goal that you wish to achieve, then you should start by saving for a down payment and doing your research on mortgage preapprovals.
Personal Finance goals are your blueprint for success. Creating these kinds of goals will help you achieve financial goals that will make your future more secure.
Start small, and stick towards your plan!
An extensive list of other personal finance goals that you can accomplish this year can be found here.