How to create and reach your personal finance goals

How to create and reach your personal finance goals

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Welcome to this

post about personal finance goals. Financial goals are very important in order to reach financial freedom.

We’re going to talk about why personal finance goals are so important, personal finance goals you could set for yourself and most common personal finance goals people have and how to crush them.

Why are personal finance goals important?

Financial goals are mostly so important because when you actually set goals for yourself, you automatically say to yourself you want to achieve these things. This way you’ll get motivated and fired up to reach your goals and as a result, you will reach your goals way faster.

How to improve your personal finance goals

to make your goals even better you should also write down your “why” and “how”. By writing down your why and how you will tap in deeper to your goals. For example, I want to make at least $500 profit this year. I want to do this because I want to make my own money in order to make my dreams come true. I’m going to do this by starting my own blog and creating my own products. Now, this is the short version, but this is a good example of a goal with your why and how.

So, when your goal is to make $50.000 this year, you could do something like this: I’m going to make at least $50.000 this year. I’m going to do this because I want to be financial independent. To make this happen, I must do …

When you want your goals to be really convincing, you can replace the words want/should and need for going to and choose to. So, instead of I want to make $50.000 because I need to pay for … you say “I’m going to make $50.000 because I choose to pay for …

Personal finance goals you should think about

Here are some personal finance goals you should consider to your list.

1. Learn about money. Learn how to manage your money, spend wisely, use a credit card etc. By learning all of this, you make sure you don’t unnecessarily spend money. If you already know a thing or two about this, you can start with learning more.
2. Start your emergency fund. An emergency fund is very important and can mean the difference between going under and staying afloat when there’s a financial emergency like losing your job. Having an emergency fund can also take away a lot of stress.
3. Controlling your spending habits. When you spend more or close to what you make, you’re never going to reach financial independence. You need to control your spendings in order to reach success.
4. Improve your credit score. A credit score is very important if you ever need a loan or something companies are going to look at your credit score and decide whether you can pay them the money.
5. Saving for retirement. Saving for retirement is very important and you shouldn’t wait with saving for it until you almost going to retire. I would even suggest starting with it before the age of 30. When you start saving early you make sure you will be able to retire earlier.
6. Make more money. Making more money is everyone’s dream, but you have to take it from a dream to a reality. You can make more money by side hustling, starting a blog, doing surveys, etc.
7. Pay off debt. Paying off debt is sooooo important, in order for you to be financially independent, you need to have paid off your debt.
8. Prevent debt in the future. When you have paid off your debt you got to make sure you keep it that way. When you get into debt again, you will have to start up front again.

Common personal finance goals and how to crush them

As research for this blog post, I asked people’s biggest personal finance goals on Facebook, Twitter and Reddit. These are the most common goals people have:

1. Paying off debt
2. Making a lot of money
3. becoming a millionaire
4. buying a dream house
5. saving for kid’s college

Now, these are all great goals and I do encourage them but do you notice how not a single one of them is specific? These goals are all nice but when you want to achieve them you will have to do a little better.

So, instead of “Paying off my debt” you can say “I’m going to pay off all my debt within two years. I’m going to do this by looking for ways to make more money and adjusting my spending habits so I will be able to pay it all off as fast as I can. I’m going to do this because I want to be financial independent.”

You see what the difference? With the first one, you think “Ok, good for you, will see if it works.” while with the second one you think “Wow! You really thought about this, this is going to work.”

Just some small adjustments can make a huge difference. So, come up with your personal finance goals and make them activating and encouraging.

To make more money I suggest taking a look at these posts: 14 side hustles which can make you an extra $500 per month, 20+ ways to make more money, 15 teen jobs chosen by a 14-year-old.

To save more money I recommend reading these posts: How to save money on your monthly bills, Why you should create a budget and how to do it, Savings goals and why you should have them.

What are your personal finance goals? Share it in the comment section.

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Original article and pictures take goafterwealth.com site