Monday, June 16, 2014
Sometimes dealing with your finances can be a headache. Sometimes it can be discouraging when you look at your checking account. Sometimes you just don't feel like trying to save money. There are a lot of different emotions that can go along with your money, that's why it's a good idea to set goals.
Jumping off the previous post about forming good habits, it's also a good idea to set goals for yourself and your finances. Goals are easy to set and hard to maintain, so it takes commitment and perseverance. But the thing is, when you see progress, then all that hard work was worth it. Hard work and consistency does pay off. So don't be shy, set some good goals for yourself that are both achievable and challenging!
Determine what your short-term, mid-term and long-term financial goals are. You need to be realistic and start out small before you can achieve those great big dreams. Some common goals would be college savings, buying a house, paying off debt or having a retirement fund. Those might be long-term goals for you or perhaps mid-term goals. Some short-term goals could be building up an emergency fund, reaching a certain amount in your savings account, saving for a vacation or paying off debt. Figure out what it is you want to achieve and prioritize those goals.
Once you have set your goals you need to come up with a good estimate of how much money you will need for each goal. Start with your short term goals and focus on those first if it's too overwhelming to plan out everything at once.
Decide when you want to achieve each goal. Figure out how much you can put aside per month to reach those goals in the designated time frame. You might find that you need to give yourself a little more time to reach a certain goal, or you might be surprised how fast you can meet another one.
Start taking action and work toward those goals. If you stick to it, you will get there!