Good Financial Goals You Should Set This Year
I can vividly remember that when I was broke back then, I was told by financial expert that I needed to set a financial goal if I want move from survival stage to a stage of abundance and to be successful financially.
Do you have a financial goal? I was also told that the first to managing your money is by having financial goals. Your goals help you to guide your finances on a daily basis. You have something that you are working towards every day. You plan and follow a budget, using your goals as your map.
Without your financial goals, you don’t really have the proper motivation to get out there and save. Without a plan, you aren’t getting anywhere. If you don’t set financial goals, you may never see financial independence.
If you want this year to be your best year, here are 7 top financial goals you should be following:
1. Debt Free Living
No one like the life of being a debtor and getting out of debt should be your first financial goal. You can do it. It just a matter of determination. Set aside money each and every month to clear your bad debts. I know there is a good debt and bad debt. This context is all about bad debt.
Bad debts are credit cards, car loans, personal loans etc. Formulate a plan to clear these debts as soon as possible. You will never have financial freedom if you continue to fork out on high interest rates every month.
As you pay off your debts, you become financially free both in mind and in spirit. Debt is like a parasite that eat up your money and leaves you with remnant for you to survive with. This should be your number one financial goal on your list.
2. Build an Emergency Fund
This is a very important financial goal. Financial experts and gurus advised that part of your salary should be saved in a separate account and not be touched except for emergency purpose.
This is a short-term goal with long-term benefits. It can take way the worries of not having money when emergency situation arises since you know that there is money somewhere. You should have an emergency fund as per your lifestyle and job profile.
Don’t think retirement is still far off and should not be a thing to bother about. If you laugh at the idea, soon enough you will become old that you will need to rest and start enjoying the fruit of your labor.
At some point in your life, you will surely retire either to stop working or need to stop working. Saving for retirement gives you the freedom to pursue professional or personal interest at age 60, 70 and beyond.
As you are working, make it a monthly financial goal to put some percentage of your income in an investment account that grows yearly and leave for as long as you work till you retire.
4. Creating Multiple Streams of Income
This is another important financial goal because with the present economy, one can’t maintain a good lifestyle with one stream of income. Multiple streams of income are how millionaires became who they are today. Having multiple streams of income is like an income insurance that you don’t need to depend on one stream for you to continue living.
If you are working on a job for a company, having a side business that rake in some amount of money monthly or weekly is not a bad idea. Having more than one stream of income help support paying the bills and improve your lifestyle.
5. Insurance Cover
Planning towards having an insurance cover is one thing smart people do. Some people don’t have a lot of coverage for either their life or properties. Health and life insurance is the most important of all the insurance you should have.
Having a life insurance is a way of protecting your family over major loss since you left them with something they can rely upon. You can stick with any low premium car insurance policy if you can afford it.
Make this year your year where you will start investing in any investment vehicle your money can afford or an investment of your dream. The quickest way to start up an investment account is to meet with any professional investment coach to help you choose the best one according to your income level.
You should start reading books about investing. You should visit a book store near you and get any books written by authors like Robert Kiyosaki, Robert G Allen and many others. If you plan your investment very well, you may not have to work anymore because the interest on your investment can take good care of you.
7. Leaving Behind a Well-Planned Legacy
However, you live your life, it should be your life goal to leave this earth fulfilled. Your financial goal should roll towards this kind of life. there is nothing better than leaving your family with lots of money in the bank and properties they can inherit.
What kind of financial legacy do you want to leave behind? Whatever your answer is to this question should be included into your financial goal.
In conclusion, reaching a point of financial fulfillment is neither a luck nor magic. It is simply a matter of setting good financial goals. Once the plan is established, it becomes easy to follow through.
Achieving these financial goals will help you live the life of your dream in the future!