Search

Five Financial Goals EVERYONE Can And Should Reach

“When” and “How” regarding any financial topic are the two main questions I get from clients, followers, family, and friends. This develops into a deeper conversation around setting financial goals, which is such an important part of becoming financially independent. In this article, I’ll discuss the five financial goals everyone can and should reach.


1. Having an Emergency Fund set up

Having the proper Emergency Fund set up will help mitigate against unforeseen expenses and circumstances. So, it’s important that you set aside a portion of your discretionary income to save enough to meet your Emergency Fund goals. If your standard of living changes (for example you move and your housing expenses change), make sure that your Emergency Fund is increased respectively.

2. Starting to save for Retirement

The sooner you start saving for retirement, the better. If possible, try saving 10% of your income. That’s a hefty percentage to start saving right away if you’re not already used to saving, so start with what you can. Once you get the hang of it, increase your percentage in increments until you reach the 10%. Then set another goal for yourself.

3. Planning and Saving for Vacations

There is nothing wrong with wanting to take vacations. But don’t go into debt for them. Instead, plan ahead, be realistic in setting a budget for your vacation, and save for it. Once you have the money to go, then go and enjoy! There’s little worse than going on a vacation and then coming back to worry about how you’re going to pay for it. You can allocate a portion of your discretionary income towards saving for your vacations.

4. Preparing for large purchases

Large purchases include buying a house and car. Much like saving for retirement, these can be scary goals to set and save for. So, don’t overwhelm yourself. Do your research on how much you think your large purchase will cost you, give yourself a timeline, and start saving the amount you’ll need each month. With large purchases, you have the option to bring in financing. If getting a loan is a route you will pursue, have a decent down payment saved up, make sure you shop around for interest rates to get the best one, and confirm that you can afford the monthly payment.


5. Becoming Debt Free

A big goal for this generation in general. So, how is this possible? Debt stacking or snowballing. This is how my husband and I have been able to become debt-free except for our mortgage. But what does debt stacking mean exactly? In general, it means that once you’ve paid off one debt, you take that monthly payment and tack it onto another monthly payment for a different debt you have and continuing this cycle until you’re completely debt free. The reason why this is easy to accomplish is because it’s money you’re already used to paying toward debt. It’s not additional money coming out of your pockets. However, if you’d like to help expedite this process, you can set a portion of your discretionary income towards one debt to start.

So that’s all I have for you today! Just to recap, the five financial goals that everyone can and should reach are:


1. Having an Emergency Fund set up

2. Starting to save for Retirement

3. Planning and Saving for Vacations

4. Preparing for Large Purchases

5. Becoming Debt Free


15 views0 comments

Recent Posts

See All
  • YouTube
  • Instagram
  • Facebook
  • LinkedIn
  • Pinterest
  • Twitter

© 2021 Mills knows Bills, LLC