FINANCIAL GOALS – 1ST STEP TO WEALTH

Today we would take a quick look at Financial goals and steps to assist you in setting one.

What Are Financial Goals?

Financial goals are goals you set that revolve around finances or money. They are targets, usually driven by specific future financial needs. Some financial goals you might set as an individual include saving for a comfortable retirement, saving to send your children to college, or managing your finances to enable a steady cash flow throughout your lifespan.

Simple Steps To Setting Financial Goals

Here are six steps to setting financial goals.

  • Figure out what matters to you. Put everything, from the practical and pressing to the whimsical and distant, on the table for inspection and weighing.
  • Sort out what’s within reach, what will take a bit of time, and which must be part of a long-term strategy.
  • Apply a SMART- goal strategy. That is, make certain your ambitions are Specific, Measurable, Achievable, Relevant, and Timely. SMART
  • Create a realistic budget. Get a strong handle on what’s coming in and what’s going out, then work it to address your goals. Use your budget to plug leaks in your financial ship.
  • With any luck, your tough, realistic, water-tight budget will show at least a handful of leftover dollars. Whatever that amount is, have it automatically directed into a separate account designed to address the first couple of things on your list of priorities.
  • Monitor your progress.

SOME FINANCIAL GOALS YOU CAN TRY

1. Aim for Self-Preservation

Your most important financial goal is self-preservation. A good way to think about self-preservation is to ask yourself, “If my income was cut off tomorrow, how long can I survive?” Therefore, emergency savings should always be your first priority; it is what will save you in tumultuous financial times. After you have established your emergency savings, your next priority is to eliminate your debt as quickly as possible. Debt is the enemy of financial freedom, because it handicaps the ability to build wealth. Once debts have been minimized, saving and building wealth should be the top priorities.

2. Live Within Your Means

It’s important to live within, or better yet, below your means. Know exactly what you have to spend each month and spend less. Living beneath your means goes further than living within your means. It means taking responsibility and choosing where your money goes, instead of being influenced by advertising, habits, or peer pressure. If you can’t pay for it twice with cash, you cant afford it!

3. Aim to Get Out of Debt

Debt is something that can limit our financial capabilities while demanding regular payments that reduce our disposable income. There are such things as “good debt” and “bad debt,” but all debt needs to be paid off eventually. In addition, because the effects of being in debt can be far reaching and carry some significant implications, it is important to get out of it. It is important to stay on top of your payments and give more when you can so that you can make greater progress in getting out of debt.

4. Consider Starting a Business

According to financial experts, you can never really get rich if you do not go into business. A business, when built correctly, is a money-making machine. You need to have an idea, do some research and then take action!.

5. Save Money to Invest in Real Estate

Aim to save enough money to invest in real estate. Real estate is a vehicle that will appreciate at a greater rate than the interest you’d pay to acquire it. There are other benefits in investing in real estate too, such as tax deductions. If you have an investment property, you can use this as a means to earn money even during retirement – booyah!!!

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