key to short term and long term financial success
is setting financial goals. If you have specific,
achievable, tangible goals, you have something to
aim for. Instead of simply saying to yourself, "I
want to have a comfortable retirement" and going
about your regular business, you need to outline what
that comfortable retirement is. It could be... "I
want to have $800,000 when I retire, have my house
paid off and I want to have $40,000 a year to spend."
that's a financial goal to aim for!
you set financial goals, it is important to divide
them into timeframe groups such as 6 months, 1 year,
3 years, 5 years, 10 years, etc. in the future. The
short term goals would be more immediate, such as
"I want to replace the washer and dryer",
three years may be "I want to buy a new car",
10 years may be, "Pay for 80% of my children's
start outlining your financial goals, simply write
down what your financial goals are without thinking
about what timeframe to put them in. Just brainstorm
and come up with as big of a list as you can. Have
fun and add specific details to make them more real
you have your list, start to categorize them into
various timeframes. You may find that you may need
to consolidate or remove some. Organize columns and
fit each goal within it's column timeframe.
third and most important step is to figure out
how to achieve these goals! This is where developing
or personal budget come into play. You may need
to consolidate your credit card debt by using a home
equity loan. What is so very important with this
step is to match your goals by timeframe with your
goals that you categorized. For example, you may calculate
that if you want to buy a car in 3 years, you will
need to set aside $150 a month. Or if another goal
is to have $80,000 for your child's education, you
need to open up a 529
college savings plan and put $300 a month away.
your financial goal with actions that you take today!
it is very important to reevaluate your progress periodically.
Maybe every 3 months (4 times a year), sit down and
see how well you are progressing. If you find that
you have not saved enough, find out why. Are you eating
out for lunch at work instead of brown bagging it?
Going out to dinner too often?
that setting financial goals involves delayed gratification
in some ways. Try to associate bringing your lunch
to work with the pleasure in knowing that you are
taking action for a pleasant financial retirement,
or living in a home that is completely paid off!
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