Setting Financial Goals
Where do you see yourself financially in 5 or even 10 years? Is that a question you ask yourself frequently or do you shy away from those thoughts because they scare you?
I’d say the majority of Americans shy away from dreaming about their financial future because those thoughts scare them. They’re barely making ends meet and are living paycheck to paycheck! (I totally get it because I’ve been there myself, and I agree that it is a very scary time.)
However, at some point you have to get your head out of the sand and figure out why you’re living paycheck to paycheck. Is it because you’re spending too much each week on eating out (or insert any number of things here)? Is it because you’re buried in debt? Is it because you need to look for a different job with higher pay?
Setting financials goals isn’t a cure-all for your financial woes but it enables you to move from your current situation into a place where you’d rather be. If you’ve never set goals before I encourage you to start small. Here are a few ideas for you as you set your first goals:
- Pay off your smallest debt by the end of the year
- Save $1,000 for emergencies
- Start a budget
- Find a better paying job
I encourage you to set attainable goals for yourself. If you don’t you’re just going to frustrate yourself and then you’ll give up all together. If there’s absolutely no way you’ll be able to pay off your smallest debt by the end of the year then setting this goal for yourself wouldn’t be realistic. Instead, maybe you could set a goal to pay half of your smallest debt by the end of the year. The key is to set yourself up for success!
Along with short-term goals it’s also wise to create long-term goals as well. Maybe you’d like to have an emergency fund, travel, save for your kids’ college or start a retirement fund. Write down your dreams/goals and break them down so that you can figure out how you can achieve them! I love the quote, “If you aim at nothing, you’ll hit it every time.”
Do you have your financial goals written down?
Tshanina Peterson blogs at Thrifty T’s Treasures where you can follow her journey of living a thrifty lifestyle.