What are your goals for the future?
If you’re like many people, you immediately think of goals you have in your career, and possibly goals you have for your family or children.
But what about financial goals?
Setting goals is a vital part of successful financial planning. Here are some you may want to plan for.
Buying a Home
Buying a house is an important financial goal for many people. Unfortunately, it’s one that feels increasingly out of reach.
There are fewer “starter” homes on the market, and income has not kept pace with rising prices. However, if you plan for it, you can buy your own home – it just may take longer than you expect.
Two important steps are to work on improving your credit score and start saving for a down payment. Banks are stricter than they used to be about how much money you need to have saved, so try to have 20% if at all possible.
Yes, it will take you longer to buy a home than it did your parents or grandparents. But it can be done in a financially responsible way if you are persistent.
Getting Out of Debt
Getting out of debt is a major financial goal for almost all Americans. From school loans to credit cards, Americans have more debt than ever. In fact, the average debt is $137,063 per household!
Paying off debt takes time and patience, like meeting your other financial goals. Many people like to focus on the lowest balances first, and once those are paid off they put the money toward the next smallest debt. This gives you a sense of accomplishment and momentum.
On the other hand, you can save the most money by focusing on paying off the high-interest debt first, no matter how large it is.
Making Major Purchases
From saving up for new living room furniture to buying a boat or new car, there are always major purchases that you have your eyes on.
Unfortunately, many people simply make the purchase on credit and worry about paying it off later. Why not plan for it a little more carefully and reduce the pressure the purchase makes on your budget?
Saving up to buy something in cash may seem unrealistic, but it’s very doable if you’re willing to wait a bit. Even saving up a portion of the purchase price will reduce the amount of debt you need, which helps your financial situation for years to come.
Don’t assume you must have something right now, or that you must use debt to get it. Be willing to wait and save!
No one wants to work forever, and many people will physically not be able to work into their advanced years. You have to have a plan in place to care for yourself financially when you stop working.
Believe it or not, 21% of Americans have nothing set aside for retirement. You can’t afford to be in that group. You must start saving, and the sooner the better!
Plan & Meet Your Financial Goals!
Setting financial goals does not have to be intimidating. They take time and patience, but you can make wise financial decisions throughout your life.