When it comes to goal setting, it's easy to overlook the importance of setting financial goals since many people focus on career or personal goals without realizing that financial goals can help them achieve these other goals as well. In this blog post, we'll discuss the reasons why financial goals are essential, how to create and prioritize them, and tips for achieving them this year. By the end of this post, you'll understand why setting financial goals is the best way to secure your future.
Goal setting is the key when it comes to your financial plan since without specific goals, you may struggle to make any changes in your current situation. However, many people neglect the importance of setting a financial goal and as a result, it deeply impacts the way they live their life.
For instance, many Australians are facing an uphill battle when it comes to their finances, with higher gas and electricity prices, rent increases, and interest rate hikes. According to recent news, the number of Aussies under financial stress is at a three-year high and a new NAB survey also found that 40 per cent of people were experiencing some form of financial difficulty.
This data only shows that without a clear plan, you will really experience difficulties. That’s why having a clear idea of what you want to accomplish financially can help you stay focused and develop the right strategies that will get the financial freedom you dreamed of.
Emergencies happen, and they can be expensive. So if you don't have an emergency fund, you will surely end up relying on credit cards or loans, which can put you in debt. That’s why, it’s important to remember that having a financial goal will help you to save a specific amount for emergencies can help you be better prepared for unexpected events.
Debt can be overwhelming, but setting a goal to pay it off can help you tackle it little by little. Additionally, setting a financial goal to save up for big purchases like a house or a car can help you put aside money each paycheck towards these long-term goals.
Retirement may seem far away, but the earlier you start saving for it, the better. Setting a financial goal to contribute a percentage of your income to a retirement account can help you build a security net for your golden years.
Before setting financial goals, it's important to understand your income and expenses. Start by tracking your spending and making a list of your financial priorities. You can try categorizing your goald into short-term, medium-term and long-term goals.
Moreover, you should think carefully about what type of goals best fit your current situation. It may be easy to set a goal like 'make more money' or 'save for retirement', but these aren't very specific and don't provide a roadmap for success. For instance, if you want to make more money, set a goal of increasing your income by 10% over the next six months. Or if you're trying to save for retirement, set a goal of saving $1000 each month for the year.
Budgeting apps make it easier to stay on top of your finances since it will help you organize and manage your money, track expenses and identify areas where you could be saving more. With the array of options available, it can be difficult to know which app is the best fit for you and your budgeting needs.
We’ve researched some of the top budgeting apps available today to give you a better idea of how they could help you this year. The budgeting apps we looked at include: Mint, PocketGuard, Quicken, Mvelopes, YNAB (You Need A Budget), and Goodbudget.
Financial goal setting is without a doubt a great tool for managing your finances and achieving your dreams because it helps you make the most of your money by giving you clarity about what you need to work on and how to do it. But even if you have enough knowledge to set financial goals yourself, seek out a competent financial planner and get help if needed.
So get in touch with an reputable financial planner today so you can reach all those ambitions that may now seem unattainable!