Having financial goals is part of our personal development goals. Financial goals help in managing our finances since it is a motivator to hustle hard. Sticking to your financial goals can be quite hard but once you make little successes every day, it actually feels rewarding and fulfilling.
If you still do not have any financial goal right now as you read this article, maybe it’s already to time for you to set serious financial goals or else your future will be as bleak as the night. Here are ten financial goals you can use to help you in one of your personal development goal.
The kind of emergencies your emergency fund is allotted for is not when you lack a few dollars so you can buy that cute top and bag or that cool gaming console on sale. Emergency funds are allotted for real and alarming emergencies that you would need to break a bank for. Usually, we think that emergency funds are for short-term use only; little did we know that in the long run, your emergency funds will be helpful for long-term goals purposes. Sure, it is one, however, if there are no alarming emergencies then just keep your emergency funds untouched so when real emergencies come, you would actually have a bigger amount of money to cash out.
If you do not have any savings or savings account yet, the best thing you can do is to not to have any debt at all. It is possible for anyone to have no debts at all regardless of anyone’s income level. This goal might be quite difficult for some especially if they cannot help themselves but spend beyond their means and beyond their needs. If you do not have any savings and you also have a lot of debts, it’s actually a recipe for disaster and when your payday comes, nothing will be left for you since you are still to pay your bills and your debts.you may also see work goals.
There is such a thing called a “good” debt. These are the debts you used to pay for your college tuition and other miscellaneous fees and there are also debts that you use to rent a house or an apartment. However, debt, in general, is something really bad for you. Imagine this scenario: so you have a debt that you used to loan a car and the one who lent you the money is already asking you to pay for it. However, the salary you received recently has been used to pay off your other bills that also need to be paid as soon as possible, you have no source of income, and you have no savings at all. And so, you resort to borrowing money from others again to pay off for the lent money you used for your mortgage note. Little did you know that you are in a vicious cycle that never ends: you borrow money to pay for your other debt. Even if your reason for borrowing money is an important matter, having debts is still a big burden and it gets heavier and heavier every single day if you cannot pay for it all. As much as possible, when you have a standing debt, find any ways to pay it off without making another debt. For example, you can spend less on your food and instead of using your car, you can just commute. If you have an extra money for the day, save it all up so you can use it to pay your debt. One way of not having a debt-free life is not to have any credit card debt which is considered as one of the worst debt you can ever have.
You do not have to wait until you reach fifty before you could plan for your retirement– you can actually start now, little by little. Planning for an early retirement is actually one of the best financial goals that everyone these days would definitely suggest you do for your financial goals.
There are still some people who would plan for their retirement at the age of fifty and here are the disadvantages you might want to consider if you are planning to retire at fifty as well:
Even if you already have a job, it is still good if you have another source of income. Let’s say your life goal is to have your main source of income is to be used for your needs, such as to pay for food, bills, and your savings and your other sources of income can be used for your leisure and you can also use it for your savings.
If you have a talent in the art department, you can make use of that talent to have another source of income. What’s nice about having another source of income is that you would not anymore need to wait for your next payday to have money onhand again and depend too much on the salary you get from your main job.
Insurance, from the term itself, ensures you have something to aid you some time in your life. It could be a life insurance, health insurance, or auto insurance. Having a good, and well-maintained insurance can help you a lot and improves your life.
This is not exactly a financial goal but this will help you with your finances. Addiction to any kind of unnecessary, worthless stuff is not good. Remember too much of everything is bad. Any addiction blocks you from achieving your financial goals such as your savings goals and even your goal of having little to no debts. Having an addiction to buying unnecessary stuff leads to more problems like needing more space in your house to fit all your things, it has no financial benefit since all it does is take a space in your home, and when you shop for that stuff, it actually takes a lot of time and we all know that time is money, therefore the time you spent for shopping has been wasted since you did not use it for important matters. A benefit for not having any kind of shopping or buying different kinds of addiction can help you achieve your smart goals of not having debts since in shopping to satiate your addiction can lead you to make credit card debts.
This is not exactly a financial goal as well but this will help you in working harder since you do what you love and doing what you love makes every effort that you do in your work worthwhile.
Always spend within your means and needs. Buying a lot of unnecessary things you do not need is a trap called debt and you have to keep in mind that you have a financial goal not to have a single debt. Spending beyond your means that you would spend beyond your base pay or your salary and what does that mean? Debt. Always determine your needs even before you receive your pay so that you will not be able to think of buying unnecessary things.
Having a budget always and unfailingly works wonders for your finance. If you only have one job and with a low salary at that, having a well-planned budget can make you look like you’re earning a million dollars a month. Budgeting can be a tough job to do especially if you have a low base pay but once you would figure out your needs as well as the things that you need to pay, you can easily budget. Make budgeting a habit. Budgeting can help you spend less and spend on unnecessary things less as well.