Actual Financial Goals
Last week I waxed lyrical about goal setting and making sure you can achieve what you’re aiming for but it was about my steps and not your money.
I do think exercise/movement/feeling good in your body has a huge impact on wealth (and vice versa) but I’ve been pondering some financial goals and how you might add some of the ease I was talking about to make them achievable.
Short Term Financial Goals
Build an emergency fund.
Save 3-6 months of expenses in an accessible account with the highest interest possible to create some financial space if the worst happens.
Some ways you might plan for success:
Look straight at it - what are your expenses? How much can you spare?
Work out some celebration or rest spots - once you’ve reached your first £1,000 could you take half of what you put in a month and have a little treat?
Spend some time choosing a high interest account but this isn’t a life partner, it doesn’t need to be perfect, just get it opened.
Write a list of when you might need to use it and if anything on the list happens - USE IT! It’s what it’s there for.
2. Paying off high interest debt.
Generally around 8% and more is considered high interest debt and it’s eating into your wealth so focusing there is a solid plan.
Some ways you might plan for success:
Again, look it straight in the eyeballs. Get it written down. The facts are the facts whether you ‘know’ them or not.
Set your minimum payments up on direct debit - immediately lowers your stress.
Plan some research time into your ‘doing’ this. There are different methods for paying down debt and one might appeal to you much more than the others.
Build in some ceremony - as a credit card gets paid off, sit down, have a cuppa and chop it up into a million pieces!
Medium and Longer Term Financial Goals
Buying a home.
I don’t think I need to explain this one (although I might point out that it’s not necessarily the best financial decision - whatever that means - so if it’s not on your list, you’re not odd!).
Some ways you might plan for success:
Take advantage of what’s available to you as you save for your deposit- LISA’s for example could give you up to £32,000 for free!
Also save for the moving costs!!
Give yourself some space to dream - notice what’s available in your area, use google maps to explore areas you might be interested in, ask friends what service providers they used.
Equally - ground yourself in gratitude if the above starts to feel too much. I’ve been through stages of scrolling through estate agents sites wishing and dreaming - all whilst having a warm home and a gorgeous little family safe in it.
2. Saving for retirement.
This could be at the ‘normal’ age or maybe an early retirement!
Some ways you might plan for success:
Don’t be afraid of the numbers. You don’t have to be a maths expert - you could work every single stage out on a calculator, write it out in colourful pens and have your workings looked over by a clever friend.
Imagine different scenarios - I’d love to live here but I could live here so you’ve got different levels to aim for.
Make the regular investing and checking what you aim for - not necessarily financial goals. For example, I will invest 15% of my take-home pay in my SIPP and I will assess where it’s being invested once a year. Stock markets go up and down so, if you’re early on anyway, you don’t need to worry about the levels, just the consistency.
These aren’t rigid rules for you to follow necessarily - and they may not apply to your circumstances anyway - but I hope they show a little of the aim of the game when it comes to setting financial goals (and other ones too).
The Best Goals Are:
Clear.
Based in reason.
Flexible.
Assessable.
Achievable.
With that in mind - what goals might you be setting?
Love Eleanor. xxx
P.s. If you liked this blog, then you might also be interested in this one about perfectionism and how it’s hurting your wealth and this one which is a walk through of the 50/30/20 money management method.
