Reaching Your Financial Goals
Updated: Mar 3, 2020
At some point in our lives, we will set financial goals for ourselves. It could be in a time when we are looking to buy a home, start a business, or even retire! The best way to prepare for these exciting ventures is by being financially sufficient. Although it may sound simple, creating a financial plan and sticking to it is often easier said than done. We’ve created a list of tasks that you can implement to make reaching those financial goals simpler than ever, without needing to hire a financial advisor!
Start off by setting up goals for yourself, both short term and long term. Make a list of what you want to achieve, we recommend in 30-day intervals. When planning how much money you need, consider taking other factors into consideration by planning for additional expenses you may have. Don’t set goals that are unrealistic for yourself.
A budget is a financial plan for a set period of time that is based upon future plans and objectives. To budget your money, subtract all of the necessary expenses from the amount that you have coming in. This will give you the amount of discretionary income that can be budgeted. Often times when budgeting, you can expect to make changes in your financial decisions such as
Avoid spending money that you don’t have
Reduce overspending in certain areas
Spending money as soon as you get it
When setting a budget, one of the first things we suggest is to pay back any debts you may already have. This will allow you to start with a clean slate and all the money that you receive can be put towards your goals.
Next, we recommend making saving automatic. This breaks up your paycheck and puts half in a savings account and half in a checking account. Doing this will prevent you from overspending and transferring money between accounts often.
Keeping track of the way you budget your money has never been easier. There are plenty of apps that can help you such as Mint, Dollarbird, or PocketGuard. These apps allow you to keep track of your spending even on the go. If you’re not comfortable with having your spending information tracked through an app, you can always use an excel sheet.
As you continue to save and budget your money, you will adjust and you will find more ways to save.