Writing down goals is a perfect way to stay on track of getting your finances in order. When you write out your goals, you are more likely to achieve them. In order to achieve your goals, you must make a plan in order to reach them.
You decide where you can cut back expenses, how much money you are able to save each month, and set a goal for how long it will take you to do so. Imagine how your life will be after you’ve accomplished your goals!
Here are 10 tips to help you achieve your family’s financial goals:
1 Specify Your Goals
What do you want to acquire? Some common finance goals are:
Pay off a credit card or loan.
Create an emergency fund.
Contribute to a retirement plan.
Save for a down payment on a home.
Save up for a large purchase such as a car, boat, big screen TV.
Set aside money for travel.
Save up for college.
Invest money in the market.
Start up your own business.
2 Put Your Goals on Paper
When you write down your goals, you are more likely to achieve them. It also helps you think about what you really want.
After you write them down, organize them. What’s most important to you? This will help develop a plan of action you can stick with until you meet the goals.
4 Be Specific
Write down a specific amount, a time frame, and what the money is for in your financial goal. For example, “I would like save up $3,000 for bathroom remodel.”
5 Be Realistic
Set a goal that is achievable. Do not set a goal you know you can never attain.
6 Create a Plan of Action
After you specify and organize your goals, come up with a plan on how to meet your goals by working with your monthly budget. For example, if you want to save $1,000 for a new TV over the next year, see if you are able to set aside $84 a month towards it. If so, after 12 months you will have the $1,000 you need to make the purchase plus interest you earned on your savings.
7 Don’t Forget Interest
If your goal is to save a certain amount of money, open an account that will allow you to earn the highest rate of interest and your savings will increase faster. If your goal is to pay something off, keep in mind you are paying interest on that item.
Many experts advise you put any extra money you have for paying off loans and credit cards to the item with the highest interest rate first. I believe you should pay off your smallest debt first, as I mentioned in my previous column. Doing this helps you to have some success and motivates you to keep going.
8 Set Short Term Goals
If you want to save $1,000 in the next 6 months to a year, set short term goals along the way. You may set a goal to save $200 a month for the next 5 months. Remember to always celebrate each milestone
9 Commit to Your Goals
You will probably have to make some trade-offs in order to meet your financial goals. Maybe you want to go to Italy for a week, and you also want to save for a house. Weigh the importance of each goal, and commit to meeting your milestones. Many times, you can still reach both goals – it may just take a little longer.
10 Check Your Progress
Periodically check to see how you are doing with meeting your financial goals. Make adjustments to your plan as necessary.
If you want more tips on how to set financial goals and help reaching them, please feel free to contact me. Also make sure to comment on my column. I would love to hear your goals.
Monica Julian is a wife and mother of two, and she knows how important is to be financially secure for her family now and for the future. She is a financial planner and insurance agent. Monica is focused on educating hundreds of people around the community, as well as across the United States, to fix their finance problems and take the burden of money stress off their shoulders. Contact – Website – Facebook – LinkedIn