Now that we are at the turn of the new year, it is time to start thinking about new goals for this year, if you haven’t thought about them yet.
It is a perfect time to evaluate where you are, where you want to go and how you are going to get there. Since this blog is all about money management, investing and how to make more money we will talk about goals around those 3 things.
First and foremost
The first thing we need to evaluate is where we are. Depending on how vigilant you have been with your finances this may be difficult to realize. The best idea is to set aside 30-60 minutes one night to evaluate where you sit financially. Some things to consider are:
· How much debt are you in?
· How much money do you make?
· How much money do you take home? (Yes, these are two different things!)
· How much money do you spend each month?
· How much money do you invest?
· Are you financially happy where you are? Comfortable?
These are all great questions to ask yourself to get a good understand of where you stand in your life financially.
Set Goals!
Now that we know where we stand, it is time to figure out where we want to go! This is my favorite part of the process because now you get to set goals for yourself. This is where you get to be creative, adventurous and give yourself a sense of purpose and carve a path for your future self.
In this step, think about the answers to the questions and how you want to change the answer.
For example, did you answer that you are in debt? According to a CNBC report in 2021 the national average consumer debt is $90,460. That is a lot of money!
Maybe this year you will want to start paying down that debt. In order to do this you will need to figure out how much debt you are in, how much money you have available each month to tackle that debt and how you want to start paying it off.
When I was paying off my student loans I made the minimum payment and then set aside a certain amount each month so that eventually, I could pay the remaining balance off in one lump sum.
Others have made two payments per month. This concept helps pay off your debt faster and makes it so you don’t have to pay off as much interest since you will pay off the loan faster.
Either of these ideas will work as long as you have a goal in mind and strive to reach the goal.
The main point of the goal is the reach it! Stay consistent with striving for your goals and eventually you will hit them!
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