5 Steps To Reach Your Financial Goals

Carol Gilmore June 2, 2018 Comments Off on 5 Steps To Reach Your Financial Goals
5 Steps To Reach Your Financial Goals

This post is sponsored by Lexington Law Firm! Thank you! It’s companies like this that allows us to keep this website running.

What is your financial goal? Each of us has a different one. You may simply aim at having an emergency fund so that you have a sense of security. You might have your eyes set on a million dollar prize, or want to become debt free. Whatever your goal is, these five action steps will help you get there.

Write it down

Money lends itself to goal setting. It is hard to set a goal for yourself about things that are hard to measure, like your happiness level or the success of a relationship. But money is counted in increments, so you can assign a number to the goal that you have in mind. Here are some examples.

  • I have zero debt by (date).
  • I have an emergency fund of 12,000 dollars by _____ (date)
  • There is 100,000 dollars in my bank account on _____ (date)

You get the idea! Set a goal that is achievable, realistic, and one to five years in the future.

Break it into smaller goals

Next break your goal into small increments. Let’s take the example of becoming debt free in two years. What do you need to do in the next year so that you are on track? How about six months? One month? One week?

If you pay high interest rates on your credit cards, your interest payments will slow down your progress towards paying down your debt. Work with a credit repair service to help you improve your credit score, so that you can qualify for cards with low interest rates. Support is essential when it comes to meeting your goals.

Credit repair companies can help you take action with your creditors. This will be reflected on your credit report, and can help you see negative claims drop off of your report and in some cases can help your score get higher.

By improving your score you may even be able to transfer your credit card balance to a card with 0% interest for a year to 18 months, so that you can really chip away at the balance for a set amount of time.

Reflect on your progress

Every month, quarter and year reflect on your progress. Make a list of what went well, and what could have gone better. For example, if you are saving up money in an emergency fund, did you meet your short term goals? If you hope to set aside 12,000 in two years, were you able to come up with 500 dollars in one month? Why or why not?

Refine your strategy

Use the information from your reflection to tweak your strategy. For example, if you found that you didn’t save enough money, you might need to take a hard look at your monthly income and expenses.

Create a System

Make a system for yourself so that working towards your financial goal becomes an integrated part of your life. The simpler the system, the easier it will be to integrate. For example, you could visit your bank and set up a separate account for your emergency fund. Automate monthly payments so that you set aside the same amount each month without thinking about it.

Many of us only have a vague sense of where we want to be financially.You might think “I just want more money,” or “I want to worry about money less”.

When you take the time to write down a concrete goal, you suddenly have a destination to reach. Then, you can begin the journey that will take you to that destination. Course correct along the way, work with a support team of experts, and systematize to help you along the way.

This post is sponsored by Lexington Law Firm! Thank you! It’s companies like this that allows us to keep this website running.

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