Now, we have entered a new year, which is a period of stock-taking of previous budgets to see how we fared financially in the previous year. Besides, in this new year many of us have come up with a new resolution to change the way we live for the better especially in the area of finance.
However, it is imperative to commence the New Year with setting financial goals, taking into consideration your savings, debts and investments if you really want to be free from financial hassles.
Again, financial goals if properly set and adhere to would help you to manage your budget by avoiding unnecessary spending or acquisitions.
Getting financial freedom is a commendable goal, but only very few people know where to begin. Nonetheless, to obtain financial freedom this year, here are some useful tips to guide you to set financial goals for the year.
Evaluate Your Current Financial Status
Setting financial goals is critical, but before it is done, you need to know where you currently stand particularly in the area of finance and one way to do that is to look through your savings, debts and investments.
However, measuring your financial position might be stressful, but knowing your financial disposition would enable you to set realistic goals for the year.
Write Out Your Budget For Each Month
This may seem like a modest goal, but writing a spending plan each month is the first step you need in getting control of your finances. If you can write out your budget on a monthly basis, you will gain financially.
More so, this would help you to understand how you want to spend your money or the amount dedicated for expenses monthly.
Stick To Your Budget
One of the best things you can do for your finances is to create a budget and ensure it is achievable for your financial benefit.
Also, make sure that your housing, food, and utility costs are not higher than what you usually spend or pay. In sticking to your budget, you should try to spend less than your earnings, as it would enable you to put money into your savings account.
Pay Off Your Debts
Debt is a significant burden and can prevent you from attaining your financial dreams.
To avoid it, and for your own benefit, start paying off your debts now as interest rate would keep stealing your money from you for as long as you are in debt. For example, if you are making 10% in the stock market, but paying 12% in interest, you are losing money. Try as much as possible to pay off all outstanding debts so that you would be able to keep the money that you invest in the future.
Plan For Retirement
Retirement is necessary and should be prepared for, if you truly want to walk tall or with your head high.
More so, you need to ascertain exactly how much you need to retire for proper planning. This would enable you to have a good idea of the amount to save.
Also, planning for retirement is always a brilliant financial goal, and the New Year is the best time to focus on it.
Stay Organised And Focused
Setting budgets and goals are significant but these efforts are pointless if you do not have a plan to stay on track.
Staying organised and focused is a critical step to meeting your financial goals this year. There are numerous tools and budgeting apps out there that can help you stay on track but when it comes to your personal budget, the more organised you are financially, the better.
Establish Emergency Fund
Without suitable planning, your budget could fall apart if an emergency arises because everyone is vulnerable to unexpected crunches.
To avoid tampering with your budget, it is crucial to establish an emergency fund as this would guard you of any kind of unexpected financial crisis without soliciting for assistance. However, this fund may take a while to establish, but the personal financial freedom you will benefit from having it is worth the trouble.
Review Your Investment Accounts
You are on the right track if you are already saving but if not, you can commence this year. It would help you to be disciplined financially.
However, there is need to also evaluate your investment accounts especially if you have a financial advisor and you are perhaps not making the required returns expected.
Experiencing such signifies that you need to be aware of where your money is going so that you do not lose it due to lack of knowledge.
Besides, there is nothing bad to acquire little education in investment as it will aid you to start making the necessary changes.
Better Your Career
This year you need to do something to advance your career especially if you love your job, and you see yourself staying there for the next 10 years.
You can still find something you can do to improve your career stability and to prepare yourself for the next step which certainly would enhance your financial status upon completion. However, if you are not happy, you will be even more inspired to make those changes.
Happy New Year!
With independent
