To establish achievable financial goals, you must create a budget plan that helps you achieve them. Many people set or establish financial goals but don’t succeed because they either lose focus or give up because it is difficult.
Therefore, in the goal-setting phase, you must set reasonable expectations. Most put the financial bar too high, ultimately leading to failure. While we should always strive to do more, setting goals starts small and works your way up to more challenging goals. Here are five types of financial goals and how to achieve them.
Improvable
Financial goals help determine your progress and encourage you to progress and reach the goal. However, it differs from having a general plan to an improvement goal. For example, “I want to increase my savings” is a general goal that reality does not help you focus on.
“I’m going to save 5% of all my income.” This is an improvement goal. Although 5% is not recommended, it is a good start for many since most still need to do it, making it better.
Even if you had 10% savings, this is still an improbable goal because the number may still be May.
Specific
Once again, the biggest problem is that we need to be more specific. Financial goals with specificity indicate what you want to achieve, how you will do it, and when you want to achieve it. At the time we have that specification, it is much easier to achieve financial goals.
An example of a general goal is “I want to be free financially.” Instead, if you say, for example: “I want to finish paying my debt with a credit card in 6 months, and after this, I will focus on the obligation of my house “, you are specific.
Tangible
A tangible financial goal can be measured, so you know when it has been achieved.
“I will finish paying my bank loan as soon as possible.” This would be a general goal if, instead, you say: “In the next six months, I will pay off my credit card in total, and when I finish, I will pay off my loan in 1 year. “this is a tangible goal.
Achievable
Are the goals you set realistic? Pay attention to your limitations. Financial goals must be tasks that can be reasonably and realistically achieved.
“In 2 years with this venture, I will make a millionaire.” This is an unrealistic statement, and it is not because you cannot be a millionaire in 2 years, but if you do not have a sustainable basis to achieve it and a plan, this won’t be easy to achieve.
“Handling my money well and with an action plan in 1 year, I finish liquidating my debts, and next year I focus on creating a plan to become a millionaire.” This statement is much more reachable. It is already clear that the first step is to get out of debt. A time limit is being set based on a plan to be a millionaire.
Separable
Regardless of your abilities, ensure you can meet your financial goals without damaging the rest of your financial obligations. “I’m going to start saving” is a general goal, “I’ll save for my retirement, and I’ll look for a plan that will help me achieve without interfering with my other obligations at home.”
The last goal is a much more specific goal, and you have in mind that you also have other obligations, so it leaves you space in your mind to overcome them. This topic may interest you: 5 tips to keep your finances in order.
Keeping these concepts in mind when setting financial goals makes it much easier to achieve these goals. To reach your financial independence, you need a plan and establish goals that help you and not only be ideals or desires.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
