iPennyPinch.com Coupons

Do You Have a Financial Goal?

Do You Have a Financial Goal? If no, then why not? If you want to get ahead in life you need to have a goal, and more importantly you need a plan for that goal.

Your goal and goals are totally up to you, what other people think shouldn't matter. Some people base their financial goals on income, net worth, being debt free, savings, etc.

With financial goals, it's hard to go wrong, as long as you are bettering your situation then in our opinion it doesn't matter. Our personal financial goals revolve around debt reduction, net worth and savings. However like I mentioned, feel free to decide your own metrics to base your goals off of, just make sure you set them!

After you set your goals, you're not done yet. You can't just set goals and do nothing else, you now need an action plan to achieve these goals. For example if you're goal is to save $10,000 in 5 years, you need to come up with a plan on how to get there. Since in the example above you have 5 years, I would divide the amount over the 5 years - this comes to $2,000 a year (10000/5). If you save $2,000 a year for 5 years you will reach your goal of $10,000. Let's break it up further, assuming you are paid biweekly - why don't we calculate how much it will take to put aside money every other week to get to our goal. There are 52 weeks in a year, this means our of the 52, we are paid 26 times through the year. So $2,000 divided by 26 weeks is $76.92. This doesn't seem that bad.

Now we are our goal and the beginning of our action plan, we need to execute it. We know we need to save $76.92 every pay check to get to our goal, what do we need to sacrifice to get there? Depending on your financial situation this may or may not be a significant amount. Start thinking about your budget (hopefully you have one) and what can you take out of your budget to make room to put the money aside?

Once you have it all figured it, it's time to make sure we commit to this. Every 2 weeks before you do anything with your money, put that money aside. Keep a checklist and keep track of your accumulating earnings. Every few months make sure you go back and track how you are doing.

Once you hit your goal, go and celebrate. Don't go crazy, just go out for a good dinner or something that you find fun. Then make sure you set another goal! The idea is we should be always pushing ourselves and setting new goals.

Best of luck, you might be surprised how easy is it to save money when you have a goal and a plan!

Comments (1)

 

  1. […] For More Information on Settings Goals, Be Sure to Read Do You Have a Financial Goal? […]

Leave a Reply