A straightforward guide to financial goal setting

Image source: Pexels.com

Steve Sorensen Embezzlement. So many people consider the new year as their chance to start new goals that will improve their lives. Taking care of finances, however, requires willpower and accountability. Here is a guide for those who have resolved to improve their financial stability this year.

Do a financial health assessment.

Steve Sorensen Embezzlement. Before coming up with a plan, it’s important to check where one stands when it comes to finances. Looking at income, debt, and savings is a must before setting time-bound goals. Some even consult with financial experts to prepare for the year ahead. To become better money-wise, a person must change spending habits and become more consistent with spending and paying-off debts.

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Set SMART goals

Steve Sorensen Embezzlement. SMART stands for Specific, Measurable, Achievable, Realistic, and Time-bound. With these in mind, one must spend a good amount of time drafting financial goals especially for more complex ones. Instead of just going with “earn more money” or “pay all debts,” putting down the details into writing will make the commitment more serious. Writing down the target budget as well as the amount that needs to be saved and paid, will help a person stick to the plan.

Create a budget and financial log

Steve Sorensen Embezzlement. Whether it’s in an old notebook or an Excel file, having a log of all income and expenditures will let a person know where the money was used. If there are goals that need to be achieved, this record will also show where a person currently stands. For those who want to be good stewards of their money, creating a budget regularly allows them to think about their purchases thoroughly. This will also instill the discipline of saving that they can use even after they’ve achieved financial stability.

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