Kids save their pocket money so they can buy themselves a new toy.
Teenagers with their first job might save for new clothes or their first car.
When we become adults, it’s less fun and we have to start saving for groceries and bills. But that doesn’t mean you can’t have the fun stuff too!
It’s all about saving smartly and setting goals.
In general, financial goals are any objectives you have that involve your money. And whether you want to save for something specific or simply be able to afford a certain type of lifestyle – your financial goals are very much intertwined with your lifestyle goals.
The age you are will also likely shape the financial goals you want to achieve. For example, if you are approaching retirement, you might be building up your nest egg. In your early twenties you might be saving to travel or starting to build a house deposit.
Financial goals can be separated into two distinct categories:
As you set financial goals, you should ask yourself relevant questions, such as how long it will take to achieve them. If it’s a big goal like a new house or a retirement fund, you will need to establish short-term goals to help you achieve the long-term goals.
Setting your financial goals can be time-consuming, but most financial advisers agree on the following fundamental strategies:
While some people shudder at the thought of budgeting, it’s so beneficial because it helps define your income and expenses.
Budgeting is a great way to know “your limits” and understand your cashflow. This way you can purchase that new pair of shoes or dress guilt-free!
Whether it’s credit card debt, your car loan, or your mortgage – pay on time, every time!
This is important for anyone who wishes to establish financial security. People tend to forget how much debt they have and avoid the problem, but this will only move you further away from security.
3. Save for emergencies
Life has a funny way of throwing curve balls at us. And sometimes those curve balls are expensive! Having an emergency fund will help you cope with life’s unexpected expenses, such as if you or someone in your family becomes ill, there is a job loss or a large, unforeseen bill arrives. Establishing an emergency fund is an important financial goal and should be a priority for everyone.
4. Live within your means
This goes hand in hand with making a budget. You should only spend your finances within reason. Try to avoid spending money that you don’t have through platforms like AfterPay or ZipPay – it can be a dangerous habit to make.
5. Save for retirement
This is something that many people tend to overlook because they’re so focused on living their best life right now. If your retirement is still a while away, you probably haven’t even thought about it yet!
But a little bit of planning now can go a long way. It takes time to build a comfortable retirement fund, so you are better off starting to save now – rather than waiting until it’s too late! Check out some of our best retirement tips specifically for women.
Setting financial goals and achieving them can be a daunting task, but one that is also incredibly rewarding.
More and more women are taking the time to better understand their finances. Setting financial goals is the first step to a better future. Whether you want to improve your finances for your family, or for your own future, Got Money Honey can help.
When it comes to setting goals, our women’s money management course will help you map out the steps and timelines you need to enjoy success.
If you want to make informed money decisions for you and your family, Got Money Honey can help you! We offer money management classes that can help you achieve financial security. Check out our online money course.