Time is money. It’s an old cliche, but it’s also true. If you don’t know what to do with that time, someone else will end up controlling your financial future on your behalf. The best way to avoid this happening is by setting some goals and working towards them every day.
We combed the financial landscape to discover the 10 financial goals that everyone should strive to achieve to gain long-term financial success. Here they are!
#1: Pay off Debts
This one may sound pretty obvious, but it’s easier said than done.
However, the sooner you can clear your debts, the better. Not only will this make it easier to buy what you want when you need or want it, but it frees up a lot more money for other uses as well.
Pro Tip: Do spend your money wisely, as having capital will allow you to grow your wealth through interest, investments and asset accumulation.
Keep in mind that debt isn’t always bad; essential borrowing like student loans1 could significantly increase your earnings. In addition, accumulating and paying off debt helps to increase your credit rating.
#2: Build Up a Savings Pot
With the cost of living on the rise, saving is a daunting task for many. However, this should be one of your top financial goals as you’ll be ready to face unforeseen financial challenges.
If you are in a tight financial position, you should still set up a savings account and add little amounts to the pot, even if it’s £10 or £50. The amount will slowly grow and can become significant savings for your future. You should do so even if you have debts to cover.
Having an emergency fund2 (around £1000) already set aside means you don’t need to panic when things don’t go as planned.
#3: Save For a Wedding or the Trip of a Lifetime
Dreaming about a wedding or the trip of a lifetime? Then you should start saving for it! It’s always tempting to spend money on day-to-day life, but that only leaves less room in our budget for our other goals.
It can be hard to create a budget, but it’s the best way to make sure that you’re not spending more money than what you have coming in, and it will allow for time to save up some funds as well!
#4: Get on the Housing Ladder
If you’re living with your parents or renting a room, it can be not easy to save up for something like this; but if saving is one of your top priorities, then the best thing that you can do is start looking into how much money you’ll need and where.
You don’t want to end up in your late 20s without any place to live and without enough money in the bank!
#5: Paying Off Your Mortgage Early
If you’re lucky enough to own your house, one of the top financial goals you should be working towards is paying off your mortgage early.
This may seem like a daunting goal at first, but it’s not as difficult as it sounds if you start planning now! If you save £500 per month for a year, this will give you £5000 and will cut off your mortgage years earlier than you would have if you didn’t do it.
#6: Retire Early or Go Part-Time
This is a goal that many people want to achieve, but not everyone knows how. If you have socked away some money from your salary and find it difficult to find an employer who will let you go part-time or retire early, then create a plan with what would need to happen for this dream of yours to become a reality!
You might want to learn: Is Early Retirement Possible with Equity Release?
#7: Build a Pension Pot
Everyone who has a job should be contributing to their pension as it’s one of the most important financial assets that you can have. It’s not just a retirement plan but also an emergency fund that will help your peace of mind if something happens in your life that causes you to need extra cash.
The earlier you begin saving, the more you’ll be able to put away each month, which will make it easier for you to retire.
#8: Set Up Your Own Business
Setting up your own business is one of those things that sounds like it will be easy but can often turn out to be a lot more difficult than you expected.
It’s not for everyone and requires a certain amount of money to do so; however, if you have been thinking about starting your own company, this should be on your list of financial goals.
#9: Start Investing
Investing is one of the best things you can do with your money, allowing for growth. You don’t need to invest a lot in stocks and shares- start small so that you won’t lose too much if something goes wrong.
#10: Give Yourself Financial Security
If you don’t have any money saved up, then start now! Giving yourself financial security will mean that you’ll be prepared and won’t need to worry about how long it would take for a new one to come in if anything happens to your job or income.
You might want to start with a small goal and work your way up, but the best thing you can do is take control of your finances now before something happens!
How Much Should I Be Saving Monthly?
It’s hard to say for sure, but you should be saving as much as possible to achieve your goals. This means that it may not always be the best idea to go out with friends and spend huge amounts of money on a night out when you know how important this is!
What Are Some Things That Can Help Me Save Up for My Goals?
Many things can help you save up for your goals! These include starting a side hustle, buying items in bulk, and eating at home more often.
How Do I Create a Budget to Make Sure That the Money Is Being Saved and Spent Efficiently?
Creating a budget is one of the best ways to make sure that you’re not spending all your money on things like alcohol and coffee. It’s hard to know how important saving up for our goals is, but it takes time!
Start by writing down everything you spend money on each day or week- this will allow you to save more.
What Is the Best Way to Save for Retirement and Why?
The best way to save for retirement is by investing in stocks and shares. It’s not as risky as you might think, but it does require a bit more work on your end than if you were saving up cash!
The last step in achieving your financial goals is to reflect on what you have learned. Take some time and think about how the steps can be applied to your life, then take action!
Be sure not to forget that it’s important to plan for the future and live according to present realities.
Finally, stay up to date with financial trends by knowing about the best finance blogs in 2021.