It’s a new year and most of us are setting goals and resolutions to set pace for the year and the new decade. Hope as you write your 2020 goals you have included some financial goals. Writing your goals down is a great step to achieving them, but don’t stop there. Achieving your goals shall require extreme discipline, dedication, and repeated sacrifice. Set your short- and long-term financial goals and follow through on them. Below are 3 goals that I believe will help you kick start your financial journey to achieve those goals and dreams you have.
- Create a spending Plan
No matter how rich or broke we are, we all need a spending plan. Planning for your money whether you live from paycheck to paycheck or have much left after your expenses, is very essential. Planning for your finances shall enable you to take full control your money to enable you reach your financial goals and dreams. Therefore, start by making a spending plan for this month of January and make it a habit over the next twelve months. And while you are on it, remember your spending plan should always cater for both your short-term and long-term goals.
- Have an emergency fund
A money goal won’t be worth anything unless you first set aside finance in case of an emergency as something unexpected can come your way and wipe away the progress you have made towards your goal. And the one thing you need to be sure of, is emergencies will always be there hence there is much need to always keep a little extra cash stashed away at all times. Nothing gives you financial peace like having an emergency fund. Try having one today. Your future self will thank you for doing it. Ideally, it is advised you have at least 3-6 months’ worth of your monthly expenses, however, you can start slowly and build it over time. Make it a point to consistently save whatever little you have and fund your emergency fund this year.
- Get out of Debt
Debt is a double edged sword that if not used correctly can have negative repercussions. For most of us, due to having bad debt it has added stress to our lives and has become a serious threat to our financial security. In case something happens such as job loss, most of us shall not be able to pay the minimum payments and shall be at a risk of losing what we have worked so hard to acquire. In addition, debt keeps us from making the most of our money. What we spend on debt payments could be used to fund our emergency funds or even invested to grow our wealth. So this year, make it part of your resolutions to come up with a debt repayment plan and follow it religiously. Life being debt free is wonderful.
You can achieve all the above and more with the right financial mindset, process and someone to guide you! Don’t wait for financial success to come knocking. Your financial success entirely rely’s on you!
Tags: 2020 goals money Wealth Wealth Creation