Creating money goals is something that instrumental to ones success. It is not enough to say you want to rich, or successful, or debt free but you have to create a financial plan to get there.
Having the desire to do something without making the decision and following through will equate to a stale mate every-time.
Money goals aka financial goals are those things that you want to accomplish in your finances.
5 Simple Money Goals for 2021
1. Fund an Emergency Fund
An emergency fund is money accumulated that you have in a savings in case of emergencies. The amount of money you decide to put away in your emergency fund is up to you. It is typically recommended that emergency funds equal at least 3 months’ worth of expenses. This money should be easily assessable but I would advise that you keep it in an account you will not dip into.
2. Create a Simple Monthly Spending Plan (Budget)
If you have not created a budget already doing so will put you in the best position financial. People tend to fear budgets because they think of them as restrictive when in all actuality it is the polar opposite. A budget is the financial footprint of your life and learning how to many your money is one of the best things your can do for yourself and your household.
Start by writing out your bills and then calculate how much you spend on other expenses (fixed and variable expenses). Get your income and subtract it the expenses you have written down. Whatever funds are leftover should be put towards your money goals whether it be paying down a debt or savings.
3. Decrease Expenses
After creating a budget, shop around for deals on your bills and see if you can get a lower price. Look at your budget and go down your list and choose variable expenses you can cut. Make sure you are being realistic about your needs.
4. Pay Off Debt Quickly
A major money goal should be to pay down debt as quick as possible. Debt holds you back to eliminating or decreasing it significantly grants you more freedom. I recommend the snowball or debt avalanche methods. One focuses on paying off the lowest debt first while other starts with tackling the highest interest rate first.
5. Automate Your Savings
The best thing you can do for yourself when it comes to savings (if possible) is to automate your savings. Automating eliminates having to remember to transfer funds or how much. Automating also eliminates OVERTHINKING. Most times we overthink on whether or not to save or how much and it ends up with us not dropping the ball.
Money drives all facets of our lives so when you ignore your finances it only leads to stress. Hopefully, you were able to gain some ideas on how some goals and execution of them to get you started on your journey.
Hey… have you heard of my financial company, KM Financial Consulting (KMFC). KMFC provides you with the necessary tools needed to fix your relationship with money: from financial education, to money mindset, to managing assets, implementation strategies, and reducing financial risks.
At KMFC no matter your financial stage we have something to offer you. Book a consultation to start your journey towards financial freedom, lessening your financial stress, and the creation of generational wealth.https://kmfinancialconsulting.com/