It is time you became smarter with money; you have to figure out what truly matters to you and what it is exactly that you want to accomplish with your money. In order to be able to set realistic financial goals, you have to be honest with yourself.
There are goals that can be achieved faster than others, and that is why we recommend you divide them into categories. For example, buying a new phone or a new laptop can be achieved in a relatively short period, whereas buying a new car or paying off your credit card debt requires more time. And you need even more time if you decide to buy a house or an apartment.
- Your goals have to be specific
When you set your goals, you have to be very specific and you have to know exactly what it is that you really want to accomplish. For example, if you have multiple debts, you have to be very careful which ones need your immediate attention and need to be tackled first.
Think about your lifestyle and find out what brings you joy. Ask yourself what things you can eliminate from your life without affecting yourself or your family.
- Learn to set achievable goals
We are all motivated by different things. In order to increase your chances of successfully following your resolutions, you need to find out which are the things that motivate you. If you want your goals to be achieved, they have to be in concordance with your personality assessment.
A common mistake people make when setting goals is that they forget to think about those expenses that will appear along the way.
- Be prepared for any type of situations
Health problems, housing issues, or car repairs are significant expenses and we should be prepared for them because sooner or later they will happen. Once you build positivity and you experience the feeling of success, it will be easier for you to start making ambitious plans that require a lot of work and energy.
You have to take into consideration the fact that unexpected situations can happen at some point in your life.
- Start with small plans
We know that you have big plans for your future, and this is good. But, it is better to start with those things that are easier and faster to achieve because they will help you build your confidence. If you start with long-term goals, you may lose patience along the way and give up everything.
When you experience the benefits of regularly putting an amount of money into your savings account, you will realize how important it is to be organized. This will encourage you to set more financial goals which will definitely improve your life.
- Build your confidence
In the beginning, it might seem hard to start saving money into your savings accounts; but later, you will understand that this emergency fund will be of great help for you in the future. Even if it can be seen as a short-term financial goal, an emergency fund will help you overcome those unexpected situations that will happen along the way.
You managed to save money for an emergency fund and this will give you the confidence that you can save money for any financial goal that you have.
- Surround yourself with positive people
It’s important to surround yourself with people who can help you improve your financial habits. If people in your group are smart with their money, there are huge chances you will be, too, and if they spend money on things they don’t actually need, you will find yourself doing the same.
You want to build relationships with people who can influence you positively. People who can help you increase your income and expand your thinking. You need people who will not only help you stick to your plans, but also help you accomplish them.
- Learn how to avoid unnecessary spending
We know how important willpower is when it comes to achieving a goal, but we also know that willpower alone is not enough. You have to figure out exactly where your money is going and how much you are spending day to day. Then, you need to learn how to redirect that money in order to achieve your financial goals.
Ask yourself some questions that will help you set your priorities right. Do you really need to buy a new phone/laptop/piece of clothing? Do you really need to buy that new collection Valentino bag?
- Know how much you spend
It is impossible for you to set realistic financial goals if you don’t have a clear idea of how much you are spending or giving away. In order to find out how achievable your financial goals are and how much money you can actually put away, you have to keep track of all your spending.
Also, it will be easier for you to achieve your financial goals if the people in your group can support you with financial advice and knowledge. You should spend more time with people who can encourage you to spend your money on things that you actually need.
- Always have a cash reserve
It is imperative to have a cash reserve because it will help you reduce the stress and worries when you find yourself in a tight spot. We all know what a big influence can people have on us, and that is why you have to be extremely careful the people you surround yourself with.
You have to put in balance what is coming in and what is going out, and then make your plans accordingly.
- Control your expenses
Keeping track of your daily expenses might be a little challenging sometimes due to our busy lifestyle. That is why there are apps like Mint and Level Money that can help you with that; these apps were made specifically for people like you who want to know how much they actually spend.
It is very important you prioritize your goals and work toward achieving the ones that are the most important to you.