Some people make New Year’s resolutions. Fewer actually stick with them for very long. But most do agree that having goals, and striving to achieve them, is important. And goals are really more substantial than dreams or wishes because having goals implies that you have at least thought about a strategy or plan to achieve them.
I’ve listed below are a few financial goals that someone out there may consider important. It is then up to that someone to take action to bring one or more of these goals to reality.
- Build Your Emergency Fund – Emergency spending happens to everyone, from a car repair bill to the loss of a job. Having that emergency fund buffer prevents the necessity to sell assets, and possibly at distressed prices, just to pay these unexpected expenses.
- Get Rid of Debt – Let’s ignore the discussion of good debt vs bad debt. At some point in your life, you truly want no debt, including the mortgage on your home. This not only frees your mind from the stress and worries that come with debt, but it means you now have full control over your income.
- Create Multiple Streams of Income – Income. Income. If your income is accounted for in retirement, then market gyrations and other economic fluctuations won’t take away your peace of mind and confidence of a great future. Along with your Social Security, what investments can you hold that will pay you income?
- Live on Less Than You Earn – Go back to Goal Number 2. If you are spending more than you earn, then chances are you are building more debt. Living on less than you earn means that you have income for savings, investments, and paying off debt.
- Stuff is Stuff – Oh how addicted we are to stuff in America. And any money going to stuff is money that generally provides no financial benefit. And as a matter of fact, the more stuff we have, the larger the space we need to store it; and of course the expenses that come with it. Watching over and protecting our stuff can eat up time we could be spending on more productive activities, and in times of financial turmoil, we may make some pretty poor decisions trying to hang on to our stuff.
- Do What You Love – Now that so much more of your life is in order from accomplishing the above goals, plan on doing what you love to do. Think about this right now; if money were no object to you, what would you be doing? So go do it! Live a more purposeful and fulfilled life now.
- Share Your Good Fortune – Now that you have the confidence that your financial world is under control, share your good fortune with others that aren’t as fortunate. You control your money. Your money doesn’t control you. Put it to great use.
- Leave Your Financial House in Order – This doesn’t happen on its own. You have to strategize and take action. Don’t leave everything up to your heirs to sort out. They have to deal with your passing as well as other demanding activities associated with losing a loved one. Take some of the burden off of them, and don’t leave them a mess to clean up. Start now, passing on your wisdom before passing on your wealth.
When’s the last time you wrote down your goals? More importantly, when’s the last time you’ve revisited them?