7 Ways to Accomplish Your Financial Goals

Change Your Thinking

 You may have to your thinking if you currently thinking negatively, have low confidence or doubt yourself. You must think positively and believe in yourself to achieve any goal. Learn at others who have successfully achieved their goals for inspiration.

List

Financial goals are what you plan to do with your money. Financial goals are important to you, within your power to make it happen, something you know you can achieve and are clearly defined and have a specific plan of action.  Create between 5 - 10 goals.  Spread the goals out over time. Create a goal sheet with a start date and target date along with details about the goal and benefit of the goal.  Use action words when creating each goal such as, “Complete” or “Study”, “Create”, “Generate”, “Assemble”, “Budget”, etc. 

Create SMART Goals

Specific (Who, What, Where, When, Why, Which) - "I want to go American University for college.” Measurable (How much, how many, how will I know when the goal is achieve) - "I need $120 for my school trip”. Attainable (develop or identify skills needed to achieve the goal, create a plan of action and timeframe) – “I want to buy a used car less than $15,000”. Realistic (an objective you know you can achieve and are willing to achieve) - "I'll save $50 a week from Thanksgiving to Christmas to buy a new pair of shoes".  Timely (set a timeframe when you will achieve the goal or set a goal that is tangible – taste, smell, touch, see, hear that you believe you can accomplish) – “I’ll save $600 by the end of the year to buy a new computer”. Visualize.  Imagine yourself achieving your goal and what your life will be like when you have achieved the goal.  

Start Small

Define short-term (0-3 years) and long-term goals (3 years +).   Create small goals that you know you can achieve.  Once you have achieved a few goals this will strengthen your confidence which will help you to achieve larger goals.  This will make it accomplish future goals and reduces stress and frustration when trying to achieve a more complex goal. 

Set Dates

When the target date arrives identify if the goal was achieved or set a new target date for the goal. Don’t create more than 1-2 goals with the same start and target date to ensure you can accomplish the goals so you don’t become overwhelmed.

Prioritize

Prioritize the goals by importance, start date and target date. Some goals may be eliminated or put on hold. 

Develop a plan

Develop an action plan to identify how you will achieve each goal.  Writing a goal down makes it easier to commit to it.  Write down an action plan to achieve a goal identifies the benefits and how you will achieve the goal. Do at least one thing each day to reach your goal. Update your action plan to track steps you have accomplished towards achieving your goal.  Avoid distractions and stay focused on your goal.  

Evaluate

Evaluate and review your progress. Track your progress with pen and paper, a smartphone or use an online tool.

9 Tips to Get Your Finances in Order

 

Many people spend time on the weekends or during the week cleaning their house, putting things in order, throwing away things, organizing, updating, replacing and moving things around.  Some people do more extensive cleaning of their house when spring or the new year arrives.  Some people clean their house and donate unused items to charity.  Whatever the case – everyone cleans their house or place where their live but do you clean your finances?

Many people do not know how much money they earn, how much they spend or how much debt they owe. Organization is the key to getting your finances in order and cleaning your financial house.  Approximately seventy percent of Americans are living paycheck to paycheck.  In some instances people live paycheck to paycheck because they do not know where their money is going.  Here are 9 ways to help you get your finances or financial house in order and help you achieve your financial goals.

Increase Your Credit Score

Get a copy of your credit report at least once a year.  Get current on all late bills and dispute any errors.

Create a Budget

Create a budget or spending plan to determine how much you earn and how much you are spending.   Include savings in your budget.  Ensure that everyone in your family follows the budget. Track your spending daily, weekly or monthly. Use pen and paper, software or apps to assist you.

Reduce Spending

Reduce your expenses by determining areas where you can reduce spending by buying more needs vs. wants such as bringing your lunch to work, shopping at discount stores or buying generic brands. Call your service providers and ask about discounts or specials.

Pay Down Debt

Pay down debt and keep credit card balances at 20% or less of the limit which also helps increase your credit score.  Do not open any new accounts or incur any additional debt.

Establish an Emergency Savings Fund

Create an emergency fund to cover bills and monthly expenses for 12-18 months to prevent going into debt for unexpected expenses.

Plan for Retirement

Plan for retirement and contribute at least 20% towards a retirement fund each month.  Contribute to a retirement account through your employer or make automatic contributions to an IRA if you are self-employed or if your employer does not offer a retirement plan.

Pay on Time

Pay bills on time or before the due date to maintain good credit and increase your credit score.  Pay bills online or through automatic deduction to save money.

Assess Needs

Determine your needs for insurance such as life, health, disability and long-term care.  Make adjustments as needed on a yearly basis or when a life event change occurs such as divorce, death, long-term illness or childbirth. Bundle services with the same company to save money.

Get Organized

Organize all bills, financial statements, debt, and loans in separate folders.  Create a bill calendar to identify when each bill is due or create a list of keep track of bills.  Get a file cabinet, cash box or accordion folder to store receipts.   Tally receipts daily, weekly or monthly and track in your budget. Set alerts or reminder when bills are due and when account balances go below a certain limit.

No New Years Resolutions Try Goals Instead

                                         

               

Everyone tries to make a New Year’s Resolution including myself. Somewhere around February we forget about that New Year’s Resolution and go back to whatever it was we were doing before the New Year. This year I am saying no to New Year’s Resolutions. This year I am creating a goals list of all the things I want to accomplish in 2016 with a target date and action steps for each. Your goals should include at a minimum health, finances, family, career, spirituality and relationships.

This year make a decision to make at least one permanent change to become better in one area of your life. The key is to keep moving forward and practice that habit every day. Don’t beat yourself up too much if you forget to practice your new habit. If you forget one day, don’t worry, tomorrow is available for you to get back on track. Don’t look at your goals as negative; view them as positive things to improve your life.

Ask friends or relatives to provide support and encouragement for your new goals. Purchase self-help motivation books or practice meditation or positive affirmations to help strengthen your confidence to ensure you achieve your goals.

Look at the big picture and how your goals will help you, your family or your overall life. Examine the long-terms benefits of your goals and focus on the benefits to increase your motivation. Ensure your thoughts, words, actions, beliefs and behaviors align with your goals.

Here are six effective financial goals to achieve in 2016:

1. Eliminate Debt. Pay down debt or totally eliminate debt. Keep credit card balances at 20% or less of the credit limit, below 10% is ideal. Pay more than the minimum monthly payment for credit cards and loans.
2. Plug holes. Shared rides, entertainment, eating out, buying items just because they are on sale, paying retail prices, monitoring services (credit score monitoring, etc.), expired policies and warranties, shopping, name brand items, etc.
3. Assess Insurance. Reevaluate insurance policies yearly or when a big event occurs – marriage, childbirth, death, illness, etc. Ensure you have adequate coverage.
4. Plan for Retirement. Contribute as much as possible to your retirement account. Look for no load or funds with low fees. Calculate the minimum amount required to save in your account by multiplying your salary by 30, i.e. $40,000 x 30 years = $1,200,000. You will need at least that much in your retirement account by your retirement age, i.e. 65.
5. Track Spending. Use tools to help track spending and increase cash flow such as PageOnce, Mint.com or mobile apps on your cell phone. Use online banking which categorizes spending and provides graphs.
6. Save. Automate savings. In addition to retirement, create an emergency savings account to cover monthly bills and expenses for 9-12 months.

Don’t make unrealistic goals, however believe in yourself and write down all of your dreams and goals. If you 

believe you can achieve a goal you will. The only thing stopping your from achieving your goal is you. Wishing you much success in 2016!