You can’t hit a target that you’re not aiming for. Having clear goals will help you make progress toward actually achieving them. Here’s how you can set your own financial goals.
Start Small and Build Momentum
Let’s say you have a few credit cards and you want to pay all of them off in a couple of years. One of them has a balance of $800 and another has $8000.
At first glance, you’d want to eliminate the debt as efficiently as possible. However, the most efficient method is not always the most effective. What if, instead, you settle the balance on the card with the lowest amount first? It can give you a small win and create momentum for you to tackle larger debt and, in turn, bigger goals.
Keep It S.M.A.R.T.
You’ve heard it time and time again. Goals should be Specific, Measurable, Achievable, Relevant, and Time-Bound. When it comes to your finances, even more so. When setting a goal, these five basic principles will help you follow through on what it takes to accomplish it. They also help clear up any ambiguity that can stop you in your tracks.
Make Sure They’re YOUR Goals
No two people have exactly the same circumstances in life. Sure, you may share similar financial milestones such as buying a house, saving for retirement, or creating a college fund for your kids. But when you get down to the details, your idea of what those goals look like won’t be the same as someone else’s. Remember, your money should help you create the life you want for yourself.
Examples of Financial Goals That Follow These Criteria
- Create a Monthly Budget and Stick to It
Having a budget is one of the most basic goals. Aside from making sure your money is going where you want it to, it can help build better financial habits. When you get better at your finances in the short term, you’ll be in a better position to face more difficult challenges in the long run.
- Pay Off Debt In “X” Years
Depending on how much you owe, this can be a daunting task. But if you create a detailed plan, you can tackle this goal little by little. Once you’re done paying it off, that money can be put to good use elsewhere.
- Prepare for Retirement
One of the biggest concerns of retirees is whether they have enough to continue to support themselves. It may still be a few decades away, but it’s never too early to ensure that you can live independently throughout your life. The sooner you get your finances in order, the sooner you can get started.
Spectrum Financial Group can help you create and reach your personal financial goals. Our advisers will make sure your hard-earned money doesn’t go to waste. Get in touch with us today.