It is that time of year again. Time for New Year’s resolutions. One reason that so many people’s resolutions fail is that they take on too many or expect too much at the beginning. It is important to set your goals, and then break each goal into manageable steps to accomplish on the way. Here are five goals you may consider if you want to change your finances. You may want to focus on just one or two now, and then once you accomplish those set new ones. It is also important to reward yourself along the way.
1) One important goal for financial peace is to create and live on a budget. It may seem like a lot of work, but once you know where your money is going, you can control your spending and really make changes to your financial situation.
2) Another important goal is to pay off your debt. This applies specifically to your credit card, home equity lines, and vehicle debt. You can also put the student loans in this category. If you sat down and figured out how much extra money you would have if you didn’t have these monthly obligations, you should find yourself motivated to free yourself from them. You can easily set up a debt snowball and begin to use it.
3) Now is a great time to start saving money. You can save for retirement, a trip, a new car or a down payment for your house. It is good to have a tangible goal attached to the money you are saving. You may want to reward yourself as you meet milestones in your savings goals.
4) Another great goal is to pay off your mortgage. Most people pay over $1000.00 a month on their mortgages. It would be great to have that extra money to apply towards your savings goals, and lifestyle. It is possible to pay off your mortgage early. It just takes focus and hard work.
5) You may want to choose a specific area to cut back your spending in. It may be that you decide to only eat out once a week or once a month. You may decide that you can save money on your groceries or on vacations. It may be that you save money in one area to apply to another more fun area.
Related Articles:
Four Simple Steps to Creating a Budget
How to Set Up a Debt Reduction Plan
Do You Have Trouble Saving Money?