Set 5 Financial Goals for Smart Money Management.
Setting serious financial goals and taking action on those goals is the key to achieving success in managing your money the smart way.
1. Pay off your debts
Most importantly, decide how much debt you wish to get rid of this year. The first option is to get out of debt completely, but it may not be possible depending on your income and debt amount. Secondly, set an amount you can pay off with strategic planning. Third, figure out how the amount you want to put towards your debt every month. Fourth, follow a debt repayment plan to speed up your repayments. Smart investments can help to accelerate your savings while unpaid debts will eat up your savings. For instance, late fees, compounding interest, fines, finance charges, and penalties, will all increase your outstanding balance, and as a result you pay more out of pocket fees in the long run.
2. Review your investment plans
Investments should be made with particular goals in mind. The benefits of planning ahead allow you to watch and move investments more efficiently, help you see where your investments are now, and evaluate your progress.
Review your investment plans:
(i) Calculate your actual return to know if you’re on the right financial track. Once you get the number, compare it to your expected return to track your financial progress in the last few years.
(ii) Compare each individual holding to a benchmark. This comparison would help you discover portions of your portfolio that need adjustment. Monitor those parts of your portfolio every month.
(iii) Analyze your overall asset allocation to identify the areas where you need to make changes. If you don’t have proper information or tools to review your investment mix, then it’s best to consult a qualified and experienced CPA financial adviser, who can make an in-depth analysis of your portfolio and help you make the required changes.
3. Stick to your budget every month
Above all, a budget is vital for proper allocation of funds and resources, and helps you evaluate each expenditure line. It also assists you to determine the maximum cash flow in and the true amount of monies going out. Therefore, if your goal is to invest in the stock market, budgeting a line item for investments will remind and encourage you to be consistent. Your budget gives you an honest idea of how much you can invest or save over time. In short, if you can stick to your budget, then your financial goals will be reached more effectively.
4. Invest more in your retirement plans
Do you have a 401(k) plan? Now is the time for you to set five best financial goals for smart money management. If not, open an account today as the money you save will grow exponentially. How much are you contributing to your 401(k) plan every month? Is it enough? Are you getting the maximum employer match? If not, then find out if there is a “catch up” opportunity this year. Increase your IRA contribution if you haven’t reached the maximum limit for the current financial year. Take full advantage for building your nest-egg.
5. Create a long-term financial plan
Visualize yourself in the next five years? For example, do you see family living in a nice house, or creating an abundant life? The process of setting intentions results in creating a long-term financial plan. After you have visualize a possibility, it is easier to strive for it.
Outline your timetable:
● When are you’re planning to buy a new apartment or home?
● Do you have a plan to get promoted or move to another job?
● Plans for retirement
● Set goals to build wealth
● Determine which type of investments you’re interested in
● If you have children, create a college savings plan
A long-term financial plan can help you make the right financial decision not only in 2018 but also in the next few years. Try implementing these six best financial goals into your life. Note: Don’t compare your long-term financial plan with others since it won’t be beneficial for you. Your long-term financial plan will be different from your best friend’s, especially if he is married and you’re single. I hope you understand my point.
Summing It Up
Remember, you have to work hard, be consistent, and set your sights to achieve long-term financial goals. Believe in yourself, set a strategic course of action, and start making positive changes using these six best financial goals to get your money matters organized. Best of luck! Patricia
About our Guest Blogger: Patricia Sanders is a financial writer and a blogger as well. She has been associated with DebtConsolidationCare for a long time. She writes regularly for wiki.debtcc.com on a variety of topics and also contributes valuable posts to different financial communities, blogs, and websites. Connect with Patricia on Facebook and Twitter.