In order to meet your financial goals this year, there are a few steps that you can take to ensure your success. First, create a budget, and commit to following that plan. Second, make a yearlong analysis of your goals (I.e. where you want to be this time next year). Thirdly, start investing or saving your money. And lastly, you should work towards getting out of any accrued debt. Follow each of these steps, and you’ll find yourself meeting your financial goals this time next year.
Budgeting
Creating a budget is an essential part of staying out of debt and avoiding creating even more for yourself. The start to budgeting is to take an inventory of your income, and then itemize your spending. Your itemized spending may include:
- Rent
- Food
- Gas
- Paying off debt
- Activities
Once you have determined what your spending looks like, you’ll be able to allocate your income towards each of those categories. This creates your budget and is an important step in the process of meeting your overall financial goals.
Yearly Goals
Yearly goals vary from person to person, so it’s important to recognize that your goals may be very different from other people in your life. Some examples of yearly goals may be:
- Becoming Debt Free
- Cutting Debt in Half
- Reaching a Certain Savings Amount
- Building A Credit Score
Each of these goals is easily measurable in the span of a year. Sit down and write everything out so you can visually see what you need to pay off or save to accomplish your goal. Simply look at where you are currently, and plan on improving that throughout the year in progressions.
Investing and Saving
Investing is not necessarily required for all individuals looking to meet their yearly financial goals; however, it can improve your finances and give you a better sense of financial freedom. If saving money is one of your yearly financial goals, the step of committing a certain amount of your budgeted income towards a savings account will help you with that.
Saving is a great way to prepare for emergency expenses or to set yourself up for a financially stable future. A 401k account through your work or an IRA are great options for saving money. There are penalties for taking money out of these accounts before retirement, so you are more likely to leave the money in the account.
Investments are great for preparing for a financially stable future. They can grow over time and make you more money in the long run. It is important to research the type of investment before spending your hard-earned money on them.
Working Yourself Out of Debt
Working yourself out of debt is not only a great yearly financial goal, but will give you more financial freedom in the years to come. Analyze how much debt you currently have, and then add payments towards that debt to your budget. Increasing payment amounts incrementally will help you pay off that debt more hastily, which will help you reach your yearly financial goals.
These steps do not necessarily have to be done in that exact order. Some people may find paying off debt to be more important than saving or investing, and vice versa. However, following at least one of these steps will put you in a better position to meet your yearly financial goals.
Do you need help with your finances? PCS Debt Relief can help with our debt relief services that are tailored to your needs. We understand the burdens and stress that debt creates, and we’re here to help you every step of the way. Call (636) 209-4481 for a free consultation to achieve financial stability.
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