6 Financial Goals To Set For 2019
Today, I want to talk to you about 6 financial goals that you should make for 2019. You need to treat these goals as steps to a promise. The key to setting goals is to make a habit of them. Spend time every year to determine what you want to achieve in the coming year. Here are some clear financial goals to set for 2019:
1. Set A Budget
I love budgets but I’m really bad at them, you are probably too. I know that you don’t want to hear this, but you have to set a budget! If you really are struggling to potentially get to a great retirement. No matter how little money you have, you need to set a budget.
Here’s what I would argue. The less money that you have, the easier it is to set a budget. Trust me, when I was living off less than $4,000 a year, I knew exactly where my money was going. If you’re living in India, trying to make $4,000 stretch, you’ve got to pay attention. So, having no money actually taught me how to manage my money. So wherever you are on your financial journey, the first step is essential.
Budgeting is the key to getting control of your finances. A budget is your map, or financial accountability and responsibility. I know it doesn’t sound fun and it isn’t, but setting yourself a budget allows you to exercise discipline. When it comes down to how you spend your money, it’s all about discipline. For instance, do you know how much money you’re going to put into necessities versus how much you’re going to put into savings? Well, it’s going to be very difficult to build wealth long term if you don’t know.
So budgets are your pass to financial freedom. By managing your money, you can control how and when you’re able to reach your other financial goals and ultimately, that financial promise you’re making to yourself.
2. Make A Savings Goal For Yourself
Your savings goal should be attainable, but it should also be as aggressive as you can manage. I like to say that you should put away 10% of every paycheck so you never even see it. Just pay yourself first so you never even have to think about it. Then think about how to live on the rest of it and adjust your budget accordingly. Remember, the more you save now, the more the money will multiply and compound in the market as time rolls along. It’s incredibly important to understand the power of compounding on the money you save now. Also, it’s important to put away your savings money first, before you pay anything else. If your savings are the first part of your budget that you pay, they’ll be much less likely to get left out. Just pay yourself first, then make a budget with what’s left.
3. Pay Off Bad Debts
The only financial goal more important than saving and investing is saving and paying off bad debts. Bad debts are a particular kind of debt. They’re debts carrying a very high-interest rate, like 15-18% interest and over, often found on your credit cards. Get rid of those debts and instead you could be making 18% as an investor.
There is also good debt. This is the kind of debt you incur when you’re investing in something when it’s about an asset that will produce a great return. For example, if you were to borrow money to put into a house, that might be really good debt. Because you might get a good return on investment. Also, investing in a college education, investing in high school education is fabulously good debt. So, debt for education that’s going to benefit you by making you more is good debt. Bad debt, when you charge stuff to impress people you don’t know who don’t care about you anyway, that is the worst kind of debt in the world.
4. Get Your Credit In Check
Start the year off right by getting a handle on what your credit score is and the factors that affect it. If your credit score ends up being lower than you’d like it to be, then take some steps to improve it. Pay off debt and keep the balances on your credit cards low will work pretty well to get a better credit score.
It’s also important to avoid things that will knock your credit score. For example, when you apply for a vehicle loan, credit reporters could knock your credit score. So be careful when you do a credit check when you want to buy something. Make sure that they aren’t going to do it in such a way that it’s going to hurt your credit score.
5. Get your taxes done early
Like it or not, tax season always comes around quicker than you think. Each year, far too many of us make the mistake of waiting until the last minute to get our taxes organised. Avoid the stress and hassle this year because you never know, things might happen that could leave you in trouble. Set a goal to have your tax documents prepared as soon as possible. Get ahead of the game and don’t let the bureaucracy give you a nightmare.
6. Do Your Research
2019 might just be an amazing year to get amazing deals on really wonderful companies that you wouldn’t be able to get at any other time in the last decade. That’s why saving and getting your finances in order is so critical and so important. When the market plummets, we want to be able to take advantage of the fire sale on wonderful companies. So make it a goal to put at least 5 companies on a wish list in the next year.
Do you have your goals set for 2019? What are some of your goals? Let us know at by getting in touch here.
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