Picture this! You have complete financial freedom and autonomy! You feel prepared financially and you have the room to make decisions for yourself, your family, and your future that aren’t contingent on acquiring debt or withdrawing money you have in the bank.
The most rewarding goals often take time and effort to achieve. All that hard work makes it worth it when you finally get there! Choosing to be financially independent is one of the most meaningful goals any of us can pursue. But – it’s certainly a challenge we can help with! Here are three simple steps to help you define and quantify your goals, which in turn will bring you closer to achieving them:
Step one: Define Financial Goals. Set your financial goals and categorize them as short, mid, or long-term. Whether it’s saving for a vacation, college education, or the end goal of retirement, every goal should be given a dollar amount and a target date.
Step two: Determine your biggest financial concerns. Left unchecked, concerns can cripple your financial plan. Circumvent these potential pitfalls by incorporating solutions for them into your goals early on. If you have more than three concerns, start with your biggest and work through those first. Focusing on too many at a time can make it difficult to make real progress.
Step three: Establish your plan. Determine what you can financially contribute toward achieving your goals. Having a budget is paramount to this strategy. Here are a few ideas:
*To boost savings, direct deposit a portion of your paycheck into your savings account
* Save your tax refunds or bonuses
* Maximize retirement plan contributions where possible
* Retain current state of living whenever income increases
Every little bit helps and while you won’t achieve financial independence overnight, it’s a journey worth taking! Having well-thought-out plans makes it much easier to keep your eye on the ball. And, we’ll be there to celebrate your milestones along the way! If you need help thinking through and defining your financial goals and timeline, please reach out! We’re more than happy to help!