Budgeting & Financial Goals
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Do you have goals in life that you want to achieve? Of course you do! Setting goals is an important part of keeping your life organized, and it gives you something to look forward to. Setting financial goals is just as important as personal goals and will provide a “framework” for any future money decisions. Here are some tips to help with setting goals while budgeting.
Call A Meeting
Every single year sit down and have a financial goals meeting with yourself if you are single, or with your spouse if you are married. The purpose of this meeting is to set and evaluate your financial goals. Look at the previous goals you set and see where you are at on the scale of completion. Did you reach your goal over the past year? Great! It’s time to set new ones. Setting new goals will make sure that you won’t get lax with your budgeting. Oftentimes, when people reach one of their goals, their budget goes out the window. That’s why new goals are so important.
Don’t Get Ahead of Yourself
Make sure each of your new goals are attainable. Don’t make your goal so incredibly large that it will take 30 years to achieve. If you do this, you will get discouraged and quit everything. Set goals that you know you can achieve if you work hard. Don’t base your goals off something that only has a chance of happening. Set a solid plan in place that, if you follow it all the way, will lead to a known success.
Line ‘Em Up
When budgeting, it’s important to make sure that your financial priorities line up with your priorities in life. If you set a goal of buying a house in the next five years, make sure your budget reflects that. Don’t take lavish vacations all over the world multiple times a year if your true goal is to save for a house. Now, if your goal is to be able to travel lavishly every year, then your vacation fund section of your budget should reflect that. The point is, if you have a financial goal, make sure you aren’t wasting a lot of money in other areas if they aren’t priorities.
Think Both Ways
When goal setting in any area of your life, it’s always good to make short-term and long-term goals. In finances, it is especially important. Having long-term goals that you are working toward–such as retirement or emergency funds–can provide you with a peace of mind that you are on the right track. If something happens, you have those goals you are working toward to back you up. However, once you have those goals in place, setting short-term goals is what makes life a little more fun. Setting budget categories for vacations, homes, home remodeling, cars, events, etc., will help you see that you can be responsible with money and still achieve all the things you want in life. It just takes a bit more patience. However, always make sure you are contributing to your long-term goals before you put money towards the fun categories.
A good life is all about balance. When you set financial goals, you are showing yourself that you can plan for the things you want and need in life, and you are in control of where you money goes. Going through life without a plan, budget, or goals is sure to set you up for chaos. Be smart–set goals you can achieve, and your life will be what you make it.
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