Whether you have $100,000 in the bank or next to nothing, managing money boils down to one thing: understanding your choices.
Setting financial goals allows you to realistically plan for future purchases without exceeding your budget. Follow some of these tips to reach your short- or long-term financial goals:
- Write down the financial goals you want to reach. Display your goals in an area where you will see them everyday. Writing your goals on a mirror, setting them as your wallpaper on your computer screen, or posting them on your bedroom door are all great ways to ensure that you will see them everyday.
- Start with specific short-term goals. This is something you want to do in the near future.
- Designate “no spend days”.
- Make sure your goals are clear and reachable, each one should be a S.T.E.P. in the right direction.
Specify. Time. Evaluate. Plan.
Short-Term vs. Long-Term Goals
Short-term goals could be figuring out student loan repayment or committing to only purchasing three coffee drinks a week rather than five to save on money.
Long-term goals might consist of saving money for a payment on a new car or a big vacation you are going on in a year or two.