Tag: financial goals

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.

Image source: Pexels.com

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.

Financial goals worth setting in 2017

No one is too old or too smart to set goals for the new year. Especially when it comes to
finances. If you think you’re ready with your assets and investments, think again. There might be more in store for you in the next year. But if you’re planning to make resolutions this year, be sure to include these financial goals:

Image source: Lifeway.com

1. Start building your emergency fund.

Instead of splurging on expensive coffee and accessories for your gadgets, why not put a certain percentage of your salary into an emergency fund? Doing this for a whole year will ensure you that if something unexpected happens, it won’t make a dent on your personal savings. Having an emergency fund will ease anxiety in the future.

2. Find a new income source.

Whether it’s by investing, another job, or through a profitable passion project, make it a goal to find a new income source in 2017. Sometimes our jobs are just enough for us to get by. If your goal is to earn more, you have to stretch yourself a bit by finding ways to earn outside of your day job.

3. Be completely debt-free.

This sounds impossible, right? Don’t fret. You’ve got 12 months to complete this goal. Make it your goal to pay off all debts so that you’ll have more money to invest, save, and spend. If you can’t do it on your own, perhaps you can seek the help of a financial adviser who will plan and manage payments with you.

Image source: Degreesource.com

Just remember, these goals require change and effort. Don’t hesitate to ask for help when you need it. Here’s to a richer 2017!

Thanks for reading. My name is Steven Sorensen, and I’m a CPA and business writer based in Colorado. My goal is to help people reach their financial goals. I also advise businesses on issues such as avoiding employee embezzlement and improving retirement plans. Visit this page to know more about what I do.