5 steps to help you achieve your financial goals
If your financial situation is far from perfect, it would be a good time to start finding ways to improve the situation. There is nothing worse than arriving home to a pile of bills and this can be quite damaging to your mental well-being. It may be that your financial situation is not as bad as this, but you just want to make improvements and start saving some cash for the future. If you want to achieve your financial goals, you need to start taking action and these are some ways to do it.
Understand your goals
The first thing you need to do is to understand your financial goals. What do you want to achieve with your finances? Maybe you just want to clear your debt or perhaps you have plans to buy a new property. You can’t achieve your financial goals without knowing exactly what you want and how much you will need to reach these. What would make your life better and how much would you need to do this? Some people are happy with a small flat, while others strive for a 4 bedroom house. Both are perfectly acceptable. They are your goals and they can be whatever you want.
Create a vision board
In order to achieve your goals, it is important to have these written down, but it will be even more effective if you create a vision board of what you want to achieve. For example, if there is a car you want to buy, print out a picture of this and stick it on your vision board. Vision boards work as the more you see your goals in front of you as an image, the more likely you are to manifest these. You should aim to check these at least once a day and before you know it, you will have manifested everything you see in front of you!
The best way to achieve your overall financial goals is to break them down into smaller goals – which are easier to achieve. For example, if you have debt of £2,000 – you would work out how quickly you want to pay it back and how this would be broken down throughout the year. If you are saving for something specific, such as a new home – you would work out how much you can afford to pay and how much you would need to save to reach your goal within a set timeframe. If you have specific figures to work with, it will be much easier to achieve small and then overall financial goals.
Develop a budget
In order to meet your financial goals and achieve what you want from your money, you need to work with some kind of budget. A budget is great as it can show you where you are wasting money and where you could be making some important savings. For example, if you tend to use public transport, when you could quite easily walk – keep a note of how much you could be saving, as this will be a good incentive for slipping into those trainers instead. You may even want to put the money aside for your savings, as this will soon mount up. If you buy a magazine every other day, this can mount up over the course of a month and you may want to consider whether this is really necessary. Could you get the same information online? It’s not about depriving yourself, but just making small chances which will enhance your future financial situation.
You should aim to monitor your progress as you go along to keep yourself on track to achieving your goals. You may want to check your goals every week and make adjustments if you are not quite seeing the results you want. It can be very easy to lose track of your goals and go off the rails, but if you keep monitoring your progress, this will be far less likely. As long as you stick to your short term goals, you will see vast improvements in your financial situation over the course of a year. Just think what you could achieve in 5 and 10 years if you keep on track like this!