4 Financial Goals Everyone Should Have
Who doesn’t want to be financially independent and able to enjoy their lives?
How you become financially free is by getting serious about your financial planning and goals.
No matter if you are a business owner, family-oriented, single, younger, or older, we all deserve to have our financial goals realized so we can do more of what we want.
Short-term vs long-term financial goals
First, let’s take a look at when to reasonably expect to reach your goals after you set them.
There are short-term financial goals that you can achieve in one year. If your goals take longer, like two to five years or more, these are considered long-term financial goals.
You can determine if your financial goals are either short or long-term by deciding how SMART they are:
● S: Specific. What exactly do you want to achieve with your money?
● M: Measurable. What milestones should you be able hit along the way?
● A: Achievable. Are your goals truly attainable in the timeline you have decided on?
● R: Relevant. Are your goals relevant to your needs and wants? Think about why you’re going after these goals and if they will truly improve your financial circumstances.
● T: Time-bound. How long will your timeline be to comfortably reach your goals and track your progress to completion?
With that said, here are financial goals that everyone should have to reach their version of financial success.
4 financial goals you should have
1. Create a spending and savings plan
As Financial Planners, we know a thing or two about the importance of spending and savings plans. They are essential to your overall financial health as you work towards your goals.
We recommend getting to know your money mindset first to learn more about your relationship with money beforehand so you can confidently manage your finances.
Once you know your money mindset, you can create a spending and savings plan that includes things like:
● Your income
● Your monthly or annual expenses
● Your financial goals
You can learn more about how to build a spending and savings plan here.
2. Pay down debts
Being in debt can make reaching your financial goals challenging, so it’s best to start paying down debts. Not only does it relieve you of debt burdens, but it also increases your credit score, which can help you achieve financial goals like owning a home or purchasing a car.
We recommend collecting your statements, ordering them from least to greatest, and start by either paying the debt with lowest balance or highest interest rate. Both ways help you put a dent in your debt and improve your credit!
3. Plan for retirement
Everyone deserves to look forward to their golden years.
Saving for retirement not only benefits you and/or your spouse, but your children and other loved ones, as well. Your retirement savings can pay for expenses like rent/mortgage, vacations, college tuition for your grandchildren, life insurance, and more.
You can get started investing in your retirement by opening accounts such 401(k)s through your employer, or traditional or Roth IRAs.
4. Save for fun
We’re serious about creating effective financial plans that help you attain your financial goals easier—and that includes having fun goals, too!
Whether it’s buying yourself a new iPad or going on a cruise, you deserve to enjoy your money and your life the way you want (within your spending and savings plan, of course!).
Ready to reach your financial goals?
If you’d like help on your journey to becoming financially independent, we’re here for you.
