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Financial Goals and Objectives – Get them in order

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.

Also, pop over to check out my free ebook.

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About Neeraj Sachdeva

Neeraj is a life-geek, who enjoys talking about Psychology and Freelancing. His freelancing endeavor focuses on kick-starting start-ups and small businesses by using practical and timely experience. In his free time, he helps budding freelancers, and you can read about his journey on The Freelancer Diary.

About Neeraj Sachdeva

Neeraj is a life-geek, who enjoys talking about Psychology and Freelancing. His freelancing endeavor focuses on kick-starting start-ups and small businesses by using practical and timely experience. In his free time, he helps budding freelancers, and you can read about his journey on The Freelancer Diary.

Comments

  1. great step-by-step plans for financial stability…we can all benefit from this in this time of recession

  2. Neeraj,

    You provided some great points on achieving your financial goals that can be carried over into achieving just about any goals that you set out to achieve. Visualizing the goal is a must if you really want to achieve it. I would say for myself the hardest part is probably removing clutter, I have to work to not just keep things around after its usefulness.

    Great job,
    Happy blogging,
    Jenn

  3. Neeraj,

    For those who want to visualize a pile of money, this us debt site has several pics -http://usdebt.kleptocracy.us/

    Thanks!
    david k waltz recently posted..NPV in the TreeMy Profile

    • 🙂 Its the wrong kind of imagination David.
      Neeraj Sachdeva recently posted..What Do Rafael Nadal, Kimi Raikkonen, and LA Lakers Have In Common?My Profile

      • Neeraj,

        Are you saying that because it is debt related? Of for a different reason?

        I was not trying to make a political statement with that comment at all. I simply thought it was cool that $100 million is a pile that is not even as tall as I am. Seems like if I visualize a pile like that, or a small pile to which I imagine adding to it every day, and it thereby growing, that might be a good visualization.

        Maybe I am on the wrong track here?
        david k waltz recently posted..NPV in the TreeMy Profile

        • David, I thought your comment was indeed politically motivated. Clearly I misunderstood!

          But yes, that pile of money would be a great motivator, but you really have to believe that you can earn that (or own that). Be realistic, otherwise it might just seem like a wild goose chase after a while, and even $1m won’t look good. But yes, that is a cool visual representation that can be envisioned. (You are right!)

  4. hi 🙂 this is exactly what I do to get the things i want 😀 there’s a great satisfaction in buying something for yourself so its fully yours (if that makes sense 😛 I used to always ask my parents for money but I like the process of aiming and saving for the things you want :D) my sisters and i have started to remove clutter by car boot sales which also helps us to save 🙂

    great (and relevant post) thanks!!

  5. thats the beauty of life–you either have the money in the bank or it isnt there…good post