Setting financial goals provides you with direction, you know what you are working towards or what your money is working towards. You have a clear focus, clarity and it gives you control. Setting goals can also give you motivation as you are striving to achieve something.
When you set yourself financial goals you are making a plan for your money. You determine what you want your money to go towards, what you want it to pay off or what you might be saving it for.
There are lots of different financial goals you can set. Here are the top 10 financial goals most individuals have:
Once you have your goal in mind you need to be able to actually set it, track it and achieve it.
Here is how I set and track my financial goals.
When I set any financial goals, I always follow the SMART principle: Specific, Measurable, Achievable, Realistic and Time-bound.
Financial goals can be both short term or long term goals.
Short term goals are those you want to achieve in the near future. That can mean today, this week, this month, or even this year. A short-term goal is something you want to accomplish soon.
Long term goals are those you want to do further in the future. They require time, planning and usually take 12 months or more to achieve.
It can be difficult to keep yourself accountable and actually follow through with your goals. So here are my 5 top tips to help keep yourself accountable when setting your financial goals:
These tips and tricks will help you on your journey to setting and achieve your financial goals in 2020.