We all have financial goals and plans for where we’d like to be in the future. Whether you have your plans together, neatly laid out or are still not sure what your financial goals are, we’re here for you.
Financial planning is an incredibly useful life skill, one that, unfortunately, isn’t taught to us at school. However, don’t let that stop you from setting your own financial goals and building a plan to achieve them.
With costs of living continuing to rise and Christmas behind us, we’re feeling the pinch at the moment. For many, financial goals may simply mean keeping your head above water.
In such times, many of us are guilty of not planning our short-term financials, running out of money before payday and turning to low-credit cash loans.
Whilst an incredibly useful lifeline when you need it, it is essential to remember that it can’t always be your go-to. That’s why it is crucial to ensure strong financial planning to enhance your quality of life and save for the future.
As we start a new year, it’s the perfect time to set your financial goals now.
In this article, not only are we here to help you achieve your financial goals but also set some very good ones for the long and short term.
1. Start Planning Your Financial Goals
The first step to achieving your financial goals is to establish them in your mind and on paper. Take a look at what you want, whether they are personal goals or family goals, it depends on you.
Would you like to go on a vacation? Do you need more things for your home? Do you want to be debt-free or have an emergency fund? Do you want to spend less? Whatever it is, make sure it is important enough to motivate you and write it down.
Once you’ve established your goals, you will need to begin planning the things you are going to do to achieve them.
2. What Do You Need to Achieve Your Goals
The next step is to work out exactly how much money you need to achieve your goals for the year or other long term goals.
While you are trying to achieve your financial goals, it’s always a good idea to have a little wiggle room, and then some more, just to be safe.
Calculate all your costs as precisely as possible and then add approximately 20 to 30% extra to your financial goal. This will not only help you achieve your goals but also provide you with some additional financial freedom.
3. Make Room for Budgeting and Passive Income Ideas
You now need to analyse your financial situation and try budgeting your personal balance sheet. Find out where you’re spending, how much you’re spending and if there’s anywhere you can make savings – great or small, they all add up.
By now you should know how much you’re saving every month and if you’re not saving enough, it may help to get in touch with a financial advisor.
While budgeting can be very helpful, you can also try some simple but helpful passive income ideas to ensure that you’re making enough money. This will make achieving your financial goals much easier and faster.
4. Track Your Growth
If you’ve set up a savings account, make sure you check into it every now and then and track your progress.
How far along are you? How much more do you need to achieve your financial goals? Have you done enough or have you missed your target? If you have, be honest about it and try again – times are hard and we’re all trying to get by.
Keeping track of your growth can help you figure out any inefficiencies or mistakes in your plan. Once you’ve figured it out, it’s time you work on the problems and save better.
Conclusion
Now that you know the 4 simple steps to achieving your financial goals, It’s time to follow these tips and make the most out of your financials. However, it is essential to remember that sometimes the going may get tough and you may find yourself struggling to stay motivated. In such times, it is crucial to speak to family and loved ones and keep yourself motivated. Slowly and steadily as you persevere you will find that all your financial goals have been achieved.
