Setting your goals for your finances is important to achieve that dream you envision your life to have. Any desire or objective you have will only be possible if you are financially capable to do so. To have this capacity, you need to create a roadmap of how you will get there. This is where goals come in.
The right financial goals can help you track every progress made towards the vision you have in mind. Without these goals, you wouldn’t know what you should track in the first place. There is nothing as fulfilling as achieving one goal and feeling excited to accomplish the next one. This is like adding fuel to the fire that already burns passionately inside you.
You can always set new goals for your finances for whatever reason any time you want. All you need is the drive and desire to accomplish your set goals. So, how do you exactly set your goals to make sure that you can achieve them?
3 Rules to Set Your Financial Goals
When getting started with your journey to a better financial situation, it is imperative that you set goals. Below are the three main things you have to remember when setting your financial goals. It is important for them to be:
Never create odds for yourself that you know you cannot achieve. Yes, your goals must be challenging enough. They should also be outside your usual comfort zone. But, it doesn’t mean that they should be unattainable and ridiculous. If it is easy for you to save $5,000 every year, you can try setting your goal to a savings of $10,000 a year. However, it is a complete stretch if your goal is to save $1,000,000 if you are already having issues saving $10,000.
If your goals cannot be measured, how do you expect to track your progress? You have to clearly state what it is you like to achieve, when you will achieve it, and what should be done every week or month to get to that end goal.
- Written Down
Your goals should all be written down. For some reason, there seems to be some magic when you put everything on paper and write those you wish to achieve. It is like you give your goals life when you write your goals. They take on more significance once you can see them written on paper.
Plan Your Finance Goals
After you are done setting your goals, the next step is breaking down each of these goals. For example, your goal is to be able to save an additional $10,000 for the next 12 months. Maybe the money is for a car, a business, or a house. No matter how you plan to use it, you have to save around $830 every month. Of course, you know that this money won’t just fall from the sky.
For you to achieve your goal, you have to fit this into your current budget, identify where you can cut corners, come up with additional income streams, and make deposits consistently to have the best results.