We are here in the last month of this year. It’s time to set some important goals that you need to achieve by next year.
These goals will help you mark lasting changes and take control over your finances. Whether you choose to do just a few of them or you are ready to tackle all of them, it’s up to you as even a small change will make a difference. You are the only one that can bring change in yourself and your business and it is important to have a plan to make your resolutions stick. Now is the time to plan for the New Year today and overcome procrastination.
You will get a thorough plan to follow if you have a laid the goals that you want to achieve beforehand. This will also keep you motivated as you will have a plan to follow. Now, if you are planning to prepare your bucket list, I suggest you add these financial goals to your bucket list.
1- Make a budget limit for every month and write down every transaction made
Always remember, never spent more than you earn. Making a budget may seem a simple goal but planning a financial budget for every month is the first step towards controlling your finance. This helps in realizing where you stand each month and how much you will be saving. Writing down how much you spent makes you more aware of how much you are spending. If writing down takes too much of your time then you can use a business budget software for your personal use. Doing this for the first month may be hectic but you need to stick to your budget in order to reach your financial goal.
2- Don’t add any more debt this year
You may already in debt from various loans. This year let’s think of getting rid of this debt instead of adding more. You should fix a goal that is realistic, but one that you will have to be careful to reach. Set a number of how much extra you want to put towards debt each month, and then work to reaching it. This way you will be faster in paying off. Stop excessive use of credit cards. If you can constrain yourself that you will no longer borrow money, then you can plan ahead for major purchases, and really make a dent in the amount of debt you have.
3- Start saving for an emergency
We normally think of having an emergency fund as being a short-term financial goal. However, an emergency fund has important long-term benefits, which is why it’s one of the good financial goals that you should plan to achieve. It’s an important money management method, if you can save money for an emergency fund, then you know you can save money for any financial goal that you have. It provides you with an in-between funding source. And if any emergency doesn’t arise then it can go in for your long-term saving. You may use ProfitBoard, the best budget and planning software
4- Improve your Credit Score
One’s credit score follows them forever and it will play a huge role in many major financial situations throughout their life. Many people think that a credit score only really matters when it comes to being approved for a loan or credit card, but it goes far beyond that. When you have a higher credit score, you are more likely to pay less interest rate when you borrow money. For a good credit score, always, without any exception pay your bills in time, maintain a low balance on your credit account. And also use a mixture or, alternatively of your credit cards and loan.
5- Invest your money
If you have a decent amount of extra cash, it’s best to wait for the next downturn and scoop up affordable rental properties in areas that are about to grow in your city. Rental properties are also a good investment that can provide you with an extra stream of income. This idea is great for people who don’t want to be only invested in stocks. If you want, you can also invest in a formal disaster recovery plan and business interruption insurance to protect their businesses in the event of a damaging natural disaster.
6- Reduce expenditure in two of the Budget Category
Once you have your budget planned out, you can start working on this. It may seem hard at first, so take it slow, one month at a time. See how much you can cut down in a month and plan accordingly for next month. You may find that you need to keep working on the same category so that you can continue to find ways to save money each month. If you can slash your spending a bit more each month, you will have more money to put towards your other financial and savings goals.
7- Start doing Charity work
Always remember, you are fortunate, not everyone else is. Find causes that matter to you and plan out ways to invest your time or money to contribute to them. The money you put out for good cause is also very important. Once you start giving out money for others, you will also realize the value of it.
8- Contribute to Your Retirement Plan
The sooner you start saving for retirement the better, as you have more time to take advantage of the power of compounding interest. You can get even more savings done from your retirement savings accounts by making contributions up to the full limit allowed each year. Also, if you have all the money saved up beforehand, then you can enjoy after your retirement with the things you always wanted to do. Plan in the same way so you know how much money you need to save early.
Setting new financial practices at the beginning of the year is a great idea but what’s important is realizing it. Whether it is giving back to the society or saving for you and your family’s future, there are many things that can be on your financial bucket list. The idea is to create a list that secures your future time and leaves a legacy of what you believe in after you pass on further.
In the end, keep reviewing your goal and start updating them if necessary. Now you can monitor your progress in reaching them throughout life’s ups and downs. In the process, you will find that both the small things you do on a daily and monthly basis and the large things you do every year and over the decades will help you achieve your financial goals.