At The Next Goal, we have stayed away from buzzwords such as ‘make easy money’ and ‘Wooza! See how I earned $12,341 in 4 hours’, primarily because there is no easy money. We all work very hard to get what we need, and even harder to get what we want. Yet your personal finances are an important part of your life, and we all want to set them in order.
These tips will work for you regardless of your financial goal. Maybe you want to earn more, maybe you would rather save some more, or maybe you are a gambling addict. Whatever the case may be, earning, saving and using money properly are the cornerstones of a good financial endeavor. If you are interested in getting your financial goals in order, here is what you should do:
Step 1: Understand and Visualize
Do you know how much money you wish to amass by, say, end of next year? $10,000? $100,000 or $1million? Whatever number you have in mind, you should be ready to work hard to achieve that. It would be futile to want $1million and spend 16 hours of day sleeping!
You should also try and visualize your goal. Imagine what you would do with that million. Better still, imagine you already have that million, or are well on your way to get it. How does life seem then? Would it be easier? Would you then want even more money?
Earning money is the first step to managing your finances, but you need to make sure you understand what money signifies to you, and whether it is more important than other things in life.
Step 2: Strategize
Now that you have a figure in mind, you need to strategize in order to achieve this number. If you work full time, do you think you can hit that target? If you are self-employed, you might have to work harder to get there, so plan.
Decide how you will achieve that figure. Your plans should be as detailed as possible, with little flexibility, as they will keep you well directed on your way to the next goal.
Step 3: Implement your Plans
Now that you have a set of guidelines for achieving this financial goal, it is time to take action. Having goals is not enough; you need to be able to implement them to their full capacity. So write down action points and ensure that you are in a position to implement these goals.
Step 4: Spend and Save – Budget
Now that you are earning enough, you need to make sure that you spend and save in the right proportion. Most of us spend considerable sum of money on rent/mortgage, utility bills and other general vital expenses. But it is safe to assume that you still have some money left after that. Sure, it could go to fund your travel plans, a night out, or even some new merchandize. Yet, saving some money every month is important. If the taxes are low, you could easily save as much as 25% of your monthly salary, but 10% is the norm, so try and save that every month.
Step 5: Remove clutter
Have you ever organized a garage sale? If not, maybe sold some stuff on ebay? Either way, this is a right time to get rid of the unnecessary things in your house. Round up everything that has not been used for the last year; remember to check the storage room. If this stuff is not part of your long term plan, it can definitely go away, so try and sell it in a garage sale or on ebay. You would be surprised at how much clutter you can quickly remove, and get compensated for it. Even though the money you earn doing this might not be considerable, it would still add up, and make your house clutter-free!
Step 6: Enjoy the ride
Just because you are saving money and trying to reach your financial goals, it would be foolhardy to be stingy. Nothing is more important than your present, so if at some point, you have to spend a little extra, feel free to. If you cannot enjoy your journey of achieving your financial goals, you will certainly not enjoy once you get there.
So were these tips helpful? Do you have something you would like to add? I would love to hear your thoughts on managing financial goals, so please share them in the comments section.
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