The Ultimate Guide to Setting Personal Financial Goals

The Ultimate Guide to Setting Personal Financial Goals

Have you ever come across people who say, “c’mon lets party and enjoy this life, you won’t be this young again.” This line has screwed up many people than ‘I love you.’ 

When it comes to managing finance, many people fail to realize that it is not ‘YOLO’ or ‘live while we’re young’ motto according to which you have to live your life.

People often do not know the real meaning of these quotes. Moreover, they can only comprehend them as long as it fits their moral principles or ideologies. And several times, these principles can cost people good fortune.

No matter what decade of your life is going on, having a financial goal is important for the success of your finances. Finance experts say, ‘saving money without a goal is pointless.’ And that’s okay! You may be in your 20s, 30s, or even 40s. You can improve your finances significantly as soon as you want. It’s just a matter of a decision.

In the beginning, a feeling of confusion is a common, shared by many people. So, if you want to begin setting personal financial goals, this guide will help you achieve them.

Whether it’s credit, money, savings, investing, or e-transfer loans in Canada, we’ll help you clear your basic concepts about fundamental and its applications.

What is personal finance?

Personal finance is one of the most important things for your financial life and your family. Having a good hold on money will ensure a secure future for yourself as well as for those whose lives are dependent on you.

Personal finance is a self-discipline that deals with managing and using money in a disciplined way. And as Robert Kiyosaki said, ‘If you are not disciplined with your money, the world will push you around and over again and again.’

Tips to stay disciplined with finance

If you have problems making commitments related to finance (which many people have), then follow these tips.

  1. Automate your investments

In today’s time, saving money is not enough. You need to invest it to grow. So the best way to do that is to put your money in financial instruments (mutual funds, bonds, NFTs, and stocks) and automate the payments.

So once you do that, the set amount will be automatically deducted from your bank and processed towards that financial instrument. This way, you are paying yourself first, and ensuring you are investing a portion of your money for your betterment before anything else is the first step to being disciplined in your investing.

  1. Segment your income

Segmenting is a smart way to allot budget to your various spending areas. For example, set a portion of your budget to pay your needs, another for credit bills, and a set portion for your wants.

Segmenting your income will allow you to have a clear idea of how much you can spend on each section of your life. It is also helpful in enjoying while not destroying the other important parts of your life.

  1. Set a goal

Now, setting a goal doesn’t mean you have to say that “I want to be the richest person in my family or town or city.” It’s okay to think like that and can be a major aim, but that’s not how it works in finance. Have you heard about manifestation? The same principle applies here as well. Having a clear goal is a way to achieve your financial goals.

Here’s how to do it:

  • Take a pen and a notebook, and set the duration to 10 years (you can choose any). Now decide what you want in the next 10 years. A new car? Fund your child’s college? Or finance a vacation. Make a goal and give it a deadline. Let’s say you want to have a laptop, car, and a vacation on your bucket list.
  • You can set it like – I want to buy a laptop next year in January. I will go on a vacation in April, two years from now. I want to buy a car 5 years from now. Now you have a defined goal of what you want and when you want.
  • Next, formulate a plan. For example, if your monthly income is $4000, you can invest $1000 for the future, segment the rest, and use it according to your needs. There is a psychological trick behind this. When people know what they are doing and why they are doing it, that clear vision of the goal makes it easy for them to achieve the goal.
  1. Smartly use credit

Often credit is taken as something bad that you must avoid using. But don’t be fooled. Credit is a powerful tool that can help you solve your financial problems easily.

It also helps you build a credit score which is a major factor when getting a loan. But if you don’t want to change your credit score, you can also opt for e-transfer loans from an online loan lender.

One important thing about credit is that it is easy to get and easy to pay. Having a source of income and even a moderate financial knowledge is enough to pay the credit on time.

Two things that you must not do

  1. Neglecting personal finance

Even people who say ‘Yolo’ will be saving money for rainy days. Don’t buy into these beliefs. Most people have tons of reserves. So, think about yourself and spend a way that won’t affect other parts of your life.

  1. Indulging too much

Thinking and indulging in finance is good. However, too much financing will give you anxiety. Save for the future but don’t do that by not enjoying your today.

This is why above, we said you need to set a portion of your income to buy ‘wants.’ After all, it is the only life you got, so you have to make sure that you make the most of it.

Personal finance, loans, instant e transfer loans canada, credit cards, bills, everything can be managed. It doesn’t matter if you are from Canada or any other country. The principle stays the same. Smartly financing will help you live your life the best way possible while not ruining your future. So, were you able to learn anything new? Share your thoughts and feedback in the comments below.