Life should be more than just mere survival. It should be constantly characterized by one financial attainment after another. A predetermined financial goal should be followed by deliberate choices that seek to usher one into their desired financial destination.
Smart Personal Finance Goals
Financial goals are derived from personal goals. For outstanding success, smart personal finance goals with the following qualities need to be set;
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1. Attainable
Though it is good to be ambitious, the goal set should also be achievable and realistic. It does not make sense for example for one to set a goal of saving three hundred dollars a month if your monthly salary is four hundred dollars.
Also, only plan with money that is already at hand. What you are expecting cannot be factored into your financial plan.
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2. Relevant
How many times do you deviate from your financial plans? It is important to stay on track rather than getting sidetracked by the spur of the moment ideas.
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3. Mutual understanding between couples regarding finances.
On this, couples need to read from the same script instead of each one going their own way. Diverting resources from goals could spell financial doom.
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4. Specific-time frames for financial goals to be achieved.
Goals that are not quantified lack commitment hence, are less likely to be achieved.
Other smart financial goals include:
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5. Buying a home
- Whether you are buying or renting a house, the cost of that shelter will be one of the most expensive things in your budget. It should be well thought of and prepared for adequately.
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6. Higher education costs for children
- Education being the key to a successful life is important. However, it should not be too expensive so as to make it impossible for one to save and invest.
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7. Emergency savings
- Uncertainties are part and parcel of life. Stressful situations can be avoided by putting some money aside for emergencies.
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8. Preparing for financial needs in old age and retirement
- Will you be able to afford the increasing medical bills? Without adequate planning, this could be tragic. Therefore, the sooner you plan for such a time, the better. Not preparing for retirement and old age early enough is one huge mistake most people make which should be avoided at all costs.
other valuable tips:
Tips for Setting Personal Financial Goals to Keep you out of Debt
Always remember that you are at the driver’s seat of your financial goals. No one will set goals on your behalf. Therefore, in setting your own, it is prudent to start with those you consider the most important.
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