While we all have our own financial goals, there are a few basic steps that make reaching virtually any financial goal easier.
Some of us are saving for retirement, while others are trying to get out of debt, buy a house, travel the globe, save for college, etc. There are so many different financial goals, but regardless of what your goal is, there are a few basic steps that you can take to reach it. By breaking your financial goals down into steps, like the ones outlined below, it makes it easier to be successful in reaching them.
The Basic Steps of Reaching Virtually Any Financial Goal
#1. Take an in-depth look at your current financial situation.
No matter what your goal is, you are going to need to truly understand your current financial situation in order to reach it. While it used to be that people kept track of every penny they spent in their check register, that’s not how most people keep track of their finances anymore. Most of us simply take a quick look at our balance through the bank’s app or an ATM when we want to know how much money we have. This can be dangerous, as it makes it all too easy to overspend without even realizing it. In order to reach your goal, you are going to need to understand where your money is going, and one of the best ways to do that is by taking a step back and writing down your purchases. This will take a couple of extra minutes, but it will help you gain a lot of knowledge about your spending habits. You may even find some significant savings opportunities by switching up your habits a little. For example, if you’re finding that you’re spending way too much on fancy lattes or lunch with your colleagues, try making your coffee at home and bringing in a lunch.
#2. Make a budget.
Without really understanding how much money you have to spend, save or pay down debt every month, you’ll never be able to make real progress towards actually reaching your goal. While some of the other steps we’ll cover in this blog series may or may not apply your specific financial goal, budgeting is an essential part of reaching any financial goal, no matter what it may be. If you’ve never made a budget before, you’re not alone. Most of us rely so heavily on the technology provided by banks and financial institutions that we’ve forgotten how important budgeting can be. But, it’s easy to get started. All you need to do is write down your income and all of your bills and expenses. From there, you can determine how much money you have left over after bills, groceries and other necessities to save or pay off debt every month.
#3. Break your long-term goal into achievable short-term goals.
Financial goals come in all shapes and sizes, but if you have a big financial goal, like paying off $100,000 in student loans, saving up a downpayment for your first home or planning for retirement, it can easily overwhelm you and leave you feeling helpless and defeated. No, you probably won’t be able to reach your goal by next week or next month, but you can decide to save or pay off a certain amount each week or month. Determine how long it will take to realistically reach your long-term goal, and then break it up into bite-sized, small-term goals. Those small-term goals are much easier to reach, and if you are able to consistently reach your small-term goals, your long-term goal will take care of itself.
Reach your financial goals with Goal Plus!
These are just a few of the basic steps you’ll need to take to reach your financial goal, and in our next blog, we’ll be going over a few more. In the meantime, download the best financial planning app available today. Goal Plus is a one-of-a-kind app that will allow you to set, track, share and reach your financial goals, and best of all, it’s absolutely FREE! No matter what your financial goal may be, you can rest assured that Goal Plus will help you reach it. Stay tuned for our net blog, and download Goal Plus today!