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Planning For Your Financial Goals

financial goals
Posted: Sep 9, 2016 at 7:20 am   /   by   /   comments (0)

Knowing who you are and what you want can help set you in the right direction, and the earlier you start thinking about your life mission, the easier it is to make the appropriate decisions and plans to reach it. With the proper planning, it’s possible to reach many or all of your goals.

So how do you go about developing your financial goals? It’s not as big and scary as it sounds.

Start With A Plan

Dreaming about what you want is fun, but the first step toward making those dreams a reality is writing down what you actually want to achieve. Doing so turns your daydreams into a plan. After you have your list, separate the items into short-term and long-term goals. Buying a new car within the next year is a short-term goal, while retiring early goes into the long-term column. Once you’ve got your plans organized on paper, it’s easier to begin to determine how to achieve them.

Focus On Priorities

If you’ve made your list based on the recommendations above, then the top priority items will be your short-term necessities. Whether they include that new car or shoes for your child, find out how much each one will cost. If you’re not sure, make your best guess.

Create A Budget

I always recommend that all families maintain monthly budgets by writing down how much money you make each month and how much you spend on regular expenses, such as rent or car payments, shopping, transportation and all your other regular needs. After you deduct your monthly expenses from your monthly income, the amount that’s left can be spent on your short- and long-term financial goals.

Don’t Neglect The Long Term

Immediate goals are clearly going to take precedence, but don’t forget to budget for those that are either long term or dreams rather than necessities. So, when you set aside money for that refrigerator, see if it’s possible to earmark a few more naira toward a great wedding anniversary. That getaway may seem a long way off, but the only way to get there is to plan now and start setting aside as much as possible toward making it a reality.

Involve The Family

Saving money doesn’t always seem like a fun activity, but you can turn it into one. For example, now that you know you must set aside a few extra naira each month for next year’s anniversary, you may need to cut back on unnecessary expenses, such as takeaway meals. Instead of falling off track on your savings plans, turn your usual takeaway night into a family cooking evening, where everyone pitches in. These simple steps can help make it more fun to stick to a savings plan over the long term.

Your Professional Can Help

Whatever financial issues you are facing, there are professionals who can help. Turn to him or her for answers to the financial questions facing your family.