When 2021 started, what were your hopes and aspirations? Many people include financial goals in their resolutions. However, turning these goals into reality is another thing. Even people who make a lot of money struggle financially when they fail to manage their money well. Being financially sound is one of the keys to accomplishing important life goals.
As the year near its end, have you already assessed where you are at in terms of the goals you’ve set? Here are some tips to help you get back on track.
5 tips to stay on track of your financial goals
1. Make saving a habit.
Financial freedom doesn’t just happen. You have to work for it. One basic step is to start saving money and be serious about it. Ideally, you should save at least 10% of your income per month. Eventually, you can raise your savings to 20% to 30% which will form the fund for your future goals.
Saving money is a habit and a lifestyle. You can cut back on some of your expenses, especially non-essentials. You may also reduce your budget for your usual spending. If you spend a lot on restaurant food, change it. Reduce eating out or food deliveries. You’ll be surprised at the amount that you’ll be able to save by modifying your habits.
2. Know what you’re saving for.
To stay focused, you should have a clear vision of your goals. It’s not enough that you’re saving a percentage of your income. You should give it a purpose. Set aside a certain amount for a specific goal. For instance, the amount you’ll initially save can be allotted for your emergency fund. After that, you can focus on funds for your retirement. It will be easier to make sacrifices if you know exactly what you’re doing it for. Saving is a habit and skill that you can use for a lifetime.
3. Prepare for emergencies.
There are different types of financial emergencies that could lead to distress, especially when you’re caught unprepared. Even if you are already financially stable, you may still experience financial shock when unexpected problems arise.
You can check out Sun Life’s insurance and investment products to know your options. There are also insurance calculators and investment tools that will guide you in finding the most suitable options that match your risk profile, personality, and goals.
4. Gain knowledge about finances.
Feed your mind with information that can help you become better at handling your finances. There are financial books and online resources that will help you learn more about how to successfully manage your money so it will grow at a faster rate.
Expertise is always welcome. Seek the help of a financial advisor who can answer most of your questions, open opportunities for you, and help you stay on track with your financial goals. Unlike relying solely on available resources, a financial advisor can discuss your life goals and offer personalized advice so you can achieve them.
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5. Take action.
Once you gain valuable knowledge from reliable resources or your financial advisor, you should also strive to be better at handling your finances. Apply the knowledge you acquired from financial experts by keeping your personal finances in check.
There are financial apps that you can download for free and guide you in achieving your financial goals. You should also check out Sun Life’s Money for Life worksheets that can help you set SMART goals, understand your cash flow, and target different types of financial goals. See more actionable takes, here.
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Consistency is one of the keys to help you keep track of your financial goals. Regardless of what you want to achieve, it is important to take actionable steps and form a support system that can help you achieve your financial goals successfully.
2021 will end in a few months to make way for a new year. Consider the tips mentioned in this article so you can set a solid foundation and a sustainable plan for your financial wellness.