Setting Financial Goals
Where do you see yourself financially in 5 or even 10 years? Is that a question you ask yourself frequently or do you shy away from those thoughts because they scare you?
Iâ€™d say the majority of Americans shy away from dreaming about their financial future because those thoughts scare them. Theyâ€™re barely making ends meet and are living paycheck to paycheck! (I totally get it because Iâ€™ve been there myself, and I agree that it is a very scary time.)
However, at some point you have to get your head out of the sand and figure out why youâ€™re living paycheck to paycheck. Is it because youâ€™re spending too much each week on eating out (or insert any number of things here)? Is it because youâ€™re buried in debt? Is it because you need to look for a different job with higher pay?
Setting financials goals isnâ€™t a cure-all for your financial woes but it enables you to move from your current situation into a place where youâ€™d rather be. If youâ€™ve never set goals before I encourage you to start small. Here are a few ideas for you as you set your first goals:
- Pay off your smallest debt by the end of the year
- Save $1,000 for emergencies
- Start a budget
- Find a better paying job
I encourage you to set attainable goals for yourself. If you donâ€™t youâ€™re just going to frustrate yourself and then youâ€™ll give up all together. If thereâ€™s absolutely no way youâ€™ll be able to pay off your smallest debt by the end of the year then setting this goal for yourself wouldnâ€™t be realistic. Instead, maybe you could set a goal to pay half of your smallest debt by the end of the year. The key is to set yourself up for success!
Along with short-term goals itâ€™s also wise to create long-term goals as well. Maybe youâ€™d like to have an emergency fund, travel, save for your kidsâ€™ college or start a retirement fund. Write down your dreams/goals and break them down so that you can figure out how you can achieve them! I love the quote, “If you aim at nothing, youâ€™ll hit it every time.”
Do you have your financial goals written down?
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