Tips for Meeting Your Financial Goals
The best financial goals align with your values and personal objectives. Not to be confused with a budget or financial plan, financial goals are specific and measurable milestones that, when reached, can bring you closer to your ideal future. As with any goal, financial goals should be aligned with your long and short-term plans, whether that includes putting your kids through school, planning for retirement, or paying off debt. We offer tips on how you can meet these financial goals and set yourself on the right financial path.
Identify Your Goals
Before reaching your financial goals, you need to know exactly what they are. A goal is the first step that sets you on your path. Think about what matters most to you and what can help you stay on course to reach these goals. A realistic financial goal should be achievable. This means you should only use your income or expected income to set your goals for the future. Don’t count on unstable income such as winning the lottery to achieve your financial goals. Realistic goals should also be specific. Simply saying “I want to get rich” is not a specific or clear goal. Specific goals would include aiming to save $5,000 by the end of the year or paying off all of your credit cards in six months. Lastly, realistic goals should be measurable. It’s important to set a deadline for your goal, such as what age you want to retire or the timeline of when you want to buy a house. Whatever your goal, the first step in reaching it is knowing exactly what it is you’re working towards.
Create and Stick to Your Budget
Creating a budget is a financial aim that will help you achieve success in all of your objectives. This allows you to have a view of your finances so you can get a good understanding of how your money flows and where you can change the flow to achieve your goals. Keep a record of your monthly spending including anything from groceries, gas and transportation, to your monthly payments. Try to eliminate any unnecessary spending or impulsive purchases and identify easy ways to cut down areas that you may be spending too much, such as how often you eat out. Establishing a budget and sticking to it can help you allocate more money to your savings and eventually push you closer to your financial goals.
Automate Your Savings
Sometimes things are easier when you don’t even have to think about them. Setting up automatic transfers from your checking to your savings is a great way to build toward your financial goals without lifting a finger. You can set up automatic transfers to your savings account using the steps in our Digital Banking Guide and make your financial goals a reality. Our Change the Way You Save program is also a great way to put money back by rounding up your debit card purchases to the next dollar and placing the change in your savings account. Although it’s a small amount at a time, every penny puts you closer and closer to reaching your financial goals.
Stay Accountable
It’s important to surround yourself with people who will positively influence you and encourage you to reach your goals in life. Once you have determined your short and long-term financial goals and have crafted a plan to help you get there, identify the people in your life who can provide accountability and support to help you reach those goals. Turning to people closest to you will help to keep you engaged with your plan and encouraged to make your financial goals a reality.
Whether you’re looking to pay off debt or saving to send your child to college, establishing healthy financial habits can help you reach any of your short or long-term financial goals. If you are willing to put in the time and effort as well as using our helpful tips, you are sure to achieve any goal you set in front of you.
At Robins Financial Credit Union, our mission is to enhance the financial well-being of our members and community. We honor this commitment by providing educational content to help you make the most of your finances. Read our other blog articles to help you gain the financial knowledge you need to succeed.