Financial goals are savings, investment, or spending targets you hope to achieve over a set period of time. Having financial goals can help you save more and spend less
Here’s how to set financial goals:
Identify your goals: Based on your standard of living and your family. You need to identify your financial commitments & goals. Here are some examples of financial goals:
Goals for people in their 20s: Saving for dream vacation, paying off student debt, buy a car, start an emergency fund.
Goals for people in their 30s: Pay off non-mortgage debt, save for child's education, emergency fund, save for a house- down payment.
Goals for people in their 40s: Invest for the Future, save for retirement and for kid's Marriage.
Goals for people in their 50s: Save 35% of salary for retirement, pay off mortgage, Look into annuities, look into long-term care insurance.
Prioritize each financial goal and set a target date: Sequence them in order of importance, from most important to least important.
Know how much you have vs. what you still need to save: Refrain from unnecessary spending, which can enable you to save more.
Create a realistic budget: Follow the 50/30/20 budget rule and allocate 50% of income for needs, 30% for wants, and 20% towards savings. Use an app like TimelyBills to manage your budget and avoid overspending.
Review your goals progress every month: Make sure that you are hitting certain benchmarks. If not, re-adjust your budget to cut down on unnecessary items.
Here are some simple tips that can help you achieve financial goals easily.
Pick up a side hustle.
Live on less than you make.
Track your expenses and eliminate bad spending habits.
Avoid taking on debt and excessive use of credit cards.
Financial goals give life and direction to your dreams. Don’t kill your dreams. Instead, set financial goals to help you reach them!