Welcome back for more excellent financial info that you can use in your daily life. Today were presenting a blog chock full of tips for setting your financial priorities and to help you with your budget, be it a family budget or a single mom budget. (You do have the budget, don’t you?) Over the next few days were going to have several more blogs about similar subjects so of course make sure to come back but for right now sit back, open your mind to new ideas and take some notes if you’re so inclined. Enjoy
Frankly, you probably won’t be able to achieve every single financial goal that you dream of. If you can get past this relatively negative bit of information without it scarring your psyche too badly what you will realize is that you have to narrow down your search for the best investments that you can make. If you concentrate your efforts on these investments you will more than likely financially achieve more than sufficient for your needs.
If you have ever heard the old adage ‘he’s penny wise and dollar foolish’ then you will know what we’re talking about when we say that you need to focus on the goals that matter the most. Yes it’s great to have a goal of going to Cancun next year and saving for that but it is far more important to have a goal for your retirement or to pay for your children’s college.
Speaking of goals, a number of them to clash or conflict so be prepared to deal with that. Simply put, when a conflict arises between two goals you will need to decide which the better of the two is. Choose that one, dump the other and move on.
If you’re keen on putting together a list of goals and prioritizing them we highly recommend. In our opinion what you need to focus on are the goals that will help you feel financially secure, fulfilled in some way and, dare we say it, happy. Some of these things could include being able to pay for your child’s college tuition, getting out of debt completely by the time you are 55 or building an emergency fund.
I’ve heard it said at church that ‘the family that prays together, stays together’. This truism could just as easily be used in your financial planning and means that you should involve your family members in the financial planning process. Without question if you are married you should be making financial plans with your spouse by your side. If you are single talking to your parents or other family members about what you’re planning to do (and asking their advice) is an excellent idea. For moms and dads letting the kids get involved is a great way to teach them about handling money.
Once you have a list of goals it’s time to start making decisions based on said goals. If for example purchasing a new car every five years fits into your financial planning and your goals then by all means purchase a new car every four or five years. On the other hand, is purchasing a new car every 10 years better suits your situation and your goals and so be it. The great thing about having goals is that you can use it as your ‘crutch’. If you are faced with a financial decision all you need to do is juxtapose that decision with your financial goal. If it fits then you know which decision to make, as well as if it doesn’t fit.
Lastly (for today at least) be prepared to see changes in your financial situation and thus the necessity to make changes to your goals. Hopefully as you gain experience in the workplace your skills become more valuable and you begin to earn more money. If that’s the case you’ll need to make changes to your goals based on your new income level. (You could blow it all on that trip to Cancun but we don’t recommend it.)
We hope that was educational. Our goal is to bring you financial information that you may not have heard before or that, even if you have heard before, is presented in a way that makes you think about it in a different light. In any case will be back soon with more and we hope you’ll be here to join us.