Here are 10 examples of financial goals you can apply to your life:
1. Signing up for a retirement plan
A retirement plan is a strategy to accumulate wealth throughout your career. Once you stop working, it can provide you with substantial savings to fund your lifestyle. Before you start saving, it’s important to set a retirement goal. You can do this by determining the amount of money you’re willing to save for every paycheck you earn and then calculating your total savings. Some employers may also match the amount of money you redirect towards your savings, increasing your saving potential. Signing up for a retirement plan can give you increased financial security and help you prepare for whatever comes after your career.
2. Funding a vacation
As an employee, taking a vacation is an opportunity to alleviate work-related stress and recharge before returning to the office. Vacations also allow you to spend time with your family and friends, helping you create a healthy work-life balance. Financing a vacation is an appropriate example of a financial goal that you can set. Research the travel and accommodation costs and consider the amount of money you may need for food, souvenirs and sightseeing activities. It can also be helpful to assess your financial status before leaving so you have resources for other priorities in your life.
3. Resolving student loan debt
Paying for college tuition, campus housing and supplies may require assistance from student loan programs. If you continue your education after completing a bachelor’s degree, you may accumulate additional student loan debt. Consider setting a financial goal to repay your student loans within a certain time period. You can identify the amount of money you can afford to pay toward the loan while still covering your regular expenses. Resolving student loan debt can give you increased financial freedom and help you pursue things you love.
4. Settling credit card debt
Settling credit card debt can give you the freedom to focus on other expenses and build a better lifestyle. Start by determining how much you can repay every month and make sure not to add any extra debt. Once you set a goal, make sure to make your payments every month. You can also establish a schedule for using the card in the future. For example, you may decide to add charges only during the holiday season or in emergency situations.
5. Becoming a homeowner
Another example of a financial goal is purchasing your own home. Consider saving money so that you can relocate to a city that matches your interests. For example, if you want to live in a downtown area, then you might save to own a condo or townhouse. If you want to live in a quiet neighborhood, then you might buy a house in a suburban area. Before you purchase a home, make sure to create a budget that accounts for mortgage payments, repairs and other routine expenses without compromising your daily financial requirements.
6. Launching a business
At some point in your career, you may decide to transition into entrepreneurship. Becoming a business owner can be expensive, as you’re responsible for building and maintaining its operations. You can estimate the amount of money that renting or buying a building may cost. You can also consider how much you can compensate the people who work for the business and the rates of the services you can provide to clients. Other relevant costs can include:
- Workplace technology
- Office furniture and supplies
- Marketing and branding, including business cards, brochures and digital advertisements
7. Paying college tuition
To avoid student loan debt, you may choose to pay for your college education by yourself. Start by finding a job that can help you cover your tuition costs. You can also consider how much it may cost you to be a full-time student versus a part-time student. If you’re attending an expensive school, meet with your advisor and see if you can extend your graduation date to reduce financial stress.
8. Reserving money for emergencies
An emergency fund is a sum of money you can use for unforeseen circumstances, such as natural disasters, medical emergencies or unplanned home repair requirements. It can allow you to pay unexpected bills while still handling your normal expenses. It can also help you avoid accumulating more debt. Consider building and maintaining an emergency fund for your personal and professional interests.
9. Finding a higher-paying job
Another financial goal is to earn a higher salary as your career evolves. You can assess your current earning potential and find ways to boost it, which may include advancing your education or requesting a wage increase from your employer. Earning more money from your job can give you additional funds to spend in areas of your life outside the workplace.
10. Enjoying financial freedom
Financial freedom is the ability to use your financial resources without concerns about overspending. For instance, if you want to travel for a special occasion, having financial freedom allows you to be comfortable with paying for the flight and accommodation. While financial freedom is usually a long-term goal, you can start by establishing short-term objectives, like paying off student loans and credit card debt. This can reduce your expenses, giving you greater saving potential.
