Many people do New Year’s resolution. That is great, but I think you need to check your on your goals more. Why not have a money goals for 2018.
We all know the importance of spending less and saving more method. But putting those principles into practice will be a big challenge.
To help you out, I have summed up 5 money goals that will bring success for your 2018. Listed goals are realistic enough that you can feel confident about reaching them.
5 Money Goals for 2018
1. Add $ 1,200 (P 60,000) to your savings account by year’s end
Most people have less than $ 1,000 (P 50,000) saved on their accounts. In which leaves them vulnerable in case of emergency. And forget affording other nice-to-haves like plane tickets for family visit or additional education to advance your career.
Hence, $ 1,200 (P 60,000) savings might seem unrealistic. Especially if your finances are tight. You can break it down to $ 100 (P 5,000) a month or $ 20 (P 1,000) a week. Setting up an automatic transfers from your checking account makes saving virtually painless.
2. Plan to do work that you love
The purpose of improving your finances should be to provide you with independence. That means it should afford you the ability to do what you want, when you want. If that is not one of the good financial goals, I do not know what it is.
Why is doing work that you love a worthy financial goal? Very few people will actually be retiring to the beach for a life blissful nothing. If not, it is likely that you will work just as a matter of personal satisfaction. Or an attempt to avoid boredom.
Since you will be working all of your life, the work that you do should not just be about earning money. It should be something that makes you feel good about your life. And good about the person you are.
3. Get out of Debt
The great thing about this goal is that anyone can do it. And if you want to get the most out of your finances, it is a requirement that you get out of debt.
Getting out of debt means that you will have full control over your income. It will leave you with more money for savings and investing. And it will also free your mind of worry and stress that comes with debt.
A more realistic strategy is committing to stop using your credit cards. Not only will this put you on the right track. But will also give you a mental boost to keep you reaching the finish line.
4. Plan for early retirement
Even if you absolutely love what it is you do for a living. Planning for an early retirement is one of those top rated financial goals.
Reaching your retirement goals may take longer than you think. If you plan to retire at 50, you have a plenty of time to make it by 65.
Poor health could make early retirement a necessity. If you have planned and prepared to retire early, then you will be ready. Family circumstances often require more of your time and early retirement will help you to have it. It is better to be able to retire early and not need to, than to need to retire early and not be able to.
There is one other advantage to planning to retire early. By working toward early retirement, you will be front-loading your retirement investment portfolio. That will give you longer portfolio easy. In which will mean that you won’t have to work so hard saving for retirement later. When doing so may be more complicated.
5. Create multiple income streams
Even if you love your job, having multiple income streams is a form of income insurance. For that reason alone, it needs to be on your list of good financial goals.
One of those income streams could be the part-time cash flow. That enables you to semi-retire at an early age. If you want to put up your own business but want to quit your job, you might consider starting a side business. The extra cash flow from any additional income stream will be a big help. On funding your retirement savings or even helps you pay your debts.
Several income streams could provide you with an income portfolio. That means that you are not dependent on a single source of income.
Give this goal some serious thought. Even if you have never considered it before. It is a goal that could open the door to a lot of other goals.
What is the point of this?
Reaching a point of financial independence in life is nothing to do with luck or magic. It is simply a matter of setting good financial goals. And having a concrete plan as how you will achieve them. Once the plan is established, and working toward those goals you will get use to it. As part of the habits that make your life what it is.
Achieving financial independence can almost seem as if it’s happening on automatic pilot. But only if you make it happen.