SETTING FINANCIAL GOALSLast updated on
Everybody should have some short- and long-term financial goals irrespective of what life stage you are in. Being in a position to set realistic and tangible goals, tracking your progress, and following them is the key to achieving your goals of finance.
For married couples, it is essential that both of you share similar goals of finance. Set your financial plans and review how you are progressing together, which will help both of you to contribute towards the same goal.
The first step is to identify your mid-term, short-term, and long-term personal goals of finance. The most common financial goals include; a new home, retirement savings, emergency fund, and a dream vacation. After identifying your goals, the other step is to know the expected amount you will need for each of the financial goals.
Each of your goals of finance should then be prioritized in order of their importance. Then, you should determine the time period needed in order to save for every financial goal. For example, short-term goals could be a year or two, and retirement could be many years to come. Next is to determine the expected gain on capital in your saving account. Interests on the savings may not be guaranteed, but you can as well use an estimated average.
In conclusion, in order to set and achieve your financial goals, you’ll need to know how much money you need to save per month. If you’re not able to achieve your goals, revisit your budget of finance and identify areas that you can be able to reduce some expenses so as to free up amounts for saving.