Some people go through life without a plan of action for, well, anything. While this spontaneous lifestyle may sound exciting and liberating, it is quite the opposite. Not having goals for your life, especially your finances, can result in a life of feeling strapped, stressed, and anything but free. Here are a few reasons why you should plan for your financial future.
• To be prepared for a rainy day. Life is full of possibilities and the unexpected could happen at any moment. In fact, odds are that everyone will have to make an emergency purchase at some point. You never know what life is going to bring, whether it be a major appliance going bad or something as significant as a job loss. Having goals and a plan to combat these possible situations is going to prepare you to be more successful at overcoming any financial stress or hardships you may be faced with.
• Your family’s future depends on it. If you are married or have children, your financial situation is directly affecting someone other than yourself. Wandering aimlessly through life without setting personal financial goals for yourself and your family can give your family less promise of a secure future.
• It gives you peace of mind. Having goals and a plan of action for anything in life will simply give you peace of mind. It is once less worry in our busy days of taking care of ourselves and our family. Having a sense of security can help anyone perform better at their everyday tasks and better take care of their responsibilities in life.
Some of my family’s goals include: paying cash for everything we buy, paying off our mortgage early, saving so we can live comfortably in retirement, and saving for our children’s education and future. I won’t go into details, but these kind of goals change the way you live your day-to-day life.
To get started making financial goals, make a list and discuss with your spouse what your family’s goals are for the future. First, determine if they are attainable, and then start making a plan for how to get there. Writing this down will help you visually see what needs to happen and in what order. Keep yourself on track by revisiting this list monthly and seeing your progress.
How do you keep yourself focused on your future financial goals?