We know – it’s already past the middle of 2017. You might be thinking “How can I still set and achieve financial goals this year if I didn’t start this process in January?”.
The truth is that there is no perfect time to do it, other than now.
Don’t wait until the end of 2017 to set financial goals for 2018. Keep reading the article to discover the best goals you can set when it comes to your finances.
Let’s do this!
1. Set and Stick With Your Monthly Budget
First, you should set a realistic monthly budget. At this point, you will already know what you spend your money on and whether there are any expenses you can cut out.
To make this easier, you can set the monthly budget on categories. That way, you will be able to track if, for example, you’re spending too much money eating out or buying new clothes.
2. Reduce Your Debt
We can all agree that getting out of debt completely would be a dream come true.
However, we’re realistic, and since it’s the middle of 2017, the financial goal of reducing your debt is ideal and achievable.
Write down the amount that you want to reduce every month. Then, compile a list of tasks that you need to accomplish in order to complete this goal by the end of 2017.
3. Start an Emergency Fund
Having an emergency fund can bring you peace of mind. It can also help you overcome unexpected large expenses.
Any sudden emergency which requires a large amount of money won’t affect your monthly budget. The size of the emergency fund will depend on your income and your debt.
Starting small is better than not having an emergency fund at all. Ideally, you should save one month’s salary in a short amount of time.
4. Start Saving For Retirement
If you have debt, then you should contribute to your 401(k) the amount that the company you work for will set. Once you reduce your debt, you can increase the amount you’re contributing to the retirement account.
When you’re young, it’s so much easier to set money aside. Moreover, you don’t know what the future holds, and it’s always good to have a backup if you plan to retire early.
5. Don’t Spend More Than You Earn
This may seem quite obvious to some people, but it’s shocking how many don’t realize that they’re actually spending way more than they are earning.
One thing that leads to this is the access to credit cards.
The greatest benefit of spending less than you earn is that you will be able to achieve the other financial goals, such as:
– Reducing your debt;
– Saving for retirement;
Even if you increase your income at some point, you should always stick to this financial goal.
Take Control of Your Finances
Setting these five goals in 2017 just won’t do. You will also need to use a tool that will help you keep track of everything that happens with your income and your expenses.