Finances are often a touchy subject. After all, nobody wants to talk about them, and most people get anxious thinking about their financial future. Want to get rid of this anxiety? It’s time to learn about the important financial goals to strive for this year. Instead of worry, you’ll be carefree and happy, with your finances being the last thing on your mind.
6 Financial Goals to Strive For This Year
Did you know that 73% of Americans die with debt? While getting out of debt is a big goal, it shouldn’t be the only financial goal you should set for yourself. Instead, you want to ensure you are making smart choices today while also preparing for the financial future. So if you’re looking to get a better grasp on your financial situation, here are 6 financial goals to strive for this year.
1) Have an emergency fund
Emergencies happen, and no matter how organized you are, you cannot always prepare for the worst. However, you can have an emergency fund set aside for certain things when they go wrong, such as car repairs or being temporarily laid off from work.
Setting aside just $500 to $1,000 and only using for emergencies can help you from accruing more credit card debt and putting yourself in a poor financial situation. According to Schwartzapfel construction accident lawyers, “Being financially prepared for an emergency can help reduce some of the stress that comes along with the incident, and this can be better for you and your family during this time.”
2) Make a budget
If you don’t currently have a budget set for your finances, then now is the time to make one. It sounds like a pain in the butt, but it’s one of the 6 financial goals to strive for for a reason.
- It will help you learn what the heck you’re spending on (you think you know, but you really don’t)
- You can quickly adjust your habits (and cut out all that useless spending)
- You can finally set goals for yourself and track against them to create the best financial future for yourself
There are plenty of budgeting software programs you can use or even just have a spreadsheet for your own reference. Once you find one you like…
- Mark down the money you bring in every month versus what you spend every month. Be sure to include everything—not just your home and utility expenses. This means putting down how much you spend in gas, on dining out, on memberships, etc.
- Create a budget that also allows you to put money aside into a savings account. If you don’t have money for that, then you’ll need to find ways to budget for it, possibly by cutting out some of your other expenses.
3) Minimize debt
If you have any current debts, whether credit cards, installment loans, etc., make a goal to minimize it. For instance, you can either set a goal to get down to a certain overall number, or you can try to follow a strategy like Dave Ramsey’s snowball method to get out of debt completely.
Reducing your debt will not only improve your overall credit score, but it can also reduce the amount of stress and anxiety you feel when discussing your current financial situation. Find the way that works best for you to minimize debt and stick with it throughout the year.
4) Don’t take on more debt
While it may be tempting to sign up for that store credit card, it’s not a good idea. After all, your financial well-being is better when you are out of debt completely and bringing on more of it is not a smart money move to make. Don’t let stores entice you with promises of coupons and other perks by taking on more debt. Instead, use this time to determine if what you’re buying is really worth it or not. And if you can’t afford it without putting it on a credit card, you will definitely want to re-think whether or not this purchase is a necessity.
5) Generate some extra income
Everyone could use some extra cash, so why not set a goal to generate some extra income this year? I definitely should be one of your financial goals to strive for this year.
For instance, maybe you can take on a side job that allows you to earn some money doing something you love. Then, be sure to either put this extra money into a savings account or put it towards your current debts. This way, you will not be tempted to spend it on something you don’t need, and you can find your way to a better financial situation before you know it.
Your future will be here before you know it, and the best way to be prepared for this future is to invest today. Whether you take part in your company 401K or you handle other investments on your own, just be sure to take the necessary steps to have money aside for when you retire. If you’re not sure where to begin, talk to a financial planner. They will be able to help you make the right decisions regarding your 6 financial goals.
6 Financial Goals to Strive For This Year: Conclusion
Your finances are important. Utilizing these financial goals will help you get them where they need to be. The reward will be well worth it in the end. Are you ready to implement these 6 financial goals to strive for this year? What’s holding you back? Let’s get after it!!
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.