GREENSBORO, NC -- Setting goals is a good thing. Setting reasonable goals is one of the best ways to really make a difference in your finances this year.
Matt Logan of Matt Logan, Inc is all about keeping your goals do-able so you are better off this time next year.
Make Reasonable Goals
If you make $15,000 a year and your goal this year is to purchase a 120 foot yacht, you may be setting yourself up for failure. Be sure to set reasonable goals to fit into your situation. An example of a reasonable goal would be to pay off credit card debt, begin living on a budget, save for a down payment or build up cash reserves. If you set unreasonable and unattainable goals, you will be sure to disappoint yourself.
Write Them Down
There is a common saying that a goal that is not written down is just a wish. Be sure to write down your financial goals for the year. This makes them more real and will also take you a step towards accountability.
Be Sure To Have Steps To Achieve These Goals
To just throw out a financial goal without mapping out the steps to get there is not effective. If your goal is to build up an emergency fund of $2,400 this year, then you should break that down into a monthly goal of $200 a month to add to your emergency fund. Also, you will want to be sure these goals will work into your budget. Maybe you will be finished paying off a loan that will free up some cash flow to achieve these goals or maybe you can adjust your budget by going out to eat a little less.
Review Your Financial Goals At Least Quarterly
All too many times, we write out these well thought out financial goals only to ignore them until the following year when we have an opportunity to write out the exact same goals. Hold yourself accountable by looking back on your financial goals. If you are not including your spouse in this conversation, this is a must. I recommend reviewing these goals monthly and at a minimum quarterly.
Suggestions For Those Of You Having Trouble Defining Goals
Many people do not even define their financial goals. These people may want to meet with a financial planner to help define those goals and to build out a plan to make sure you achieve your long term financial goals as well. For those of you looking to just get started, the following list of goals would be a good way to start:
1- Create a budget.
2- Set aside 3 months of expenses as an emergency fund.
3- Pay off your credit card debt.
4- Begin saving for retirement.
5- Start a Roth IRA.
6- Begin saving for your children's college.
Matt Logan is a Representative with Matt Logan Inc and Summit Brokerage and may be reached at www.mattloganinc.com, 336-808-0126 or firstname.lastname@example.org.
Matt Logan Inc is an independent firm with Securities offered through Summit Brokerage Services, Inc., Member FIRNA, SIPC. Advisory services offered through Summit Financial Group Inc., a Registered Investment Advisor.