Everyone has financial goals they’d like to accomplish, but many don’t know how to begin. The goal may be to eliminate credit card debt or save for retirement. There are short-term and long-term financial goals and they all begin with identifying what those goals are. People should make sure their financial goals are specific to them and not what others are doing.
Make a List
At its most basic level, individuals can begin by making a list of what they want to accomplish financially – and be realistic. When motivated to create a list, most people are surprised by the number of things they include. Individuals need to make sure their goals are always uppermost in their mind. Keep the list highly visible by placing it on the phone, using sticky notes, or tape a copy to the refrigerator.
Saving money or managing finances better is too vague. Individuals need to be specific. That can include purchasing a new car, taking a dream vacation, or living without credit cards.
Make a Budget
Budgeting is a skill that many have never learned. In one column, list all of the household’s monthly income. In another column, list all of the recurring monthly bills. Subtract the bills from income. The remaining number is how much disposable income is available to put toward financial goals.
People should be prepared to make adjustments. That can mean eliminating or reducing expensive coffee, the number of times they eat out, or the number of subscriptions to streaming services. Even small changes can make a difference.
Everyone needs to be able to see measurable results. It keeps people from becoming discouraged and provides proof that what they’re doing is or isn’t working.
Set a Deadline
Individuals need to set a specific date for accomplishing their goal. Work on one goal at a time. The deadline will depend on what a person wants to achieve. It could take a matter of months or involve a multi-year plan.
At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs. We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!