We’re getting close to another new year. It never ceases to amaze me how fast time truly goes. They say time flies when you’re having fun, but time flies regardless! It’s important to recognize that time is the one currency we can’t get back. Once it’s spent, it’s gone. I realized that a long time ago and I’ve always made it a mission to be intentional with my time. I’ve reached burnout multiple times, but I don’t regret maximizing my time.
How does that relate to goals, you may be wondering. Well, if you’re not careful, time will keep going and you’ll end up in the exact same spot (or behind). I’m not saying we, as humans, should always go hard, but consistent goal setting and working towards those goals is a must. Some years may be bigger growth years than others, but every year should see some sort of forward movement.
If you struggle with coming up with goals, specifically money goals, I’ve got you covered. I’m sharing 6 money goals to set that never get old. No matter where you are in life, these are money goals that can (and should) always be worked towards!
6 Money Goals to Set that Never Get Old
#1 Saving for retirement
You may have heard that the U.S. stock market has continued to reach all-time highs this year. There are more 401k millionaires now than ever before. All that means is you MUST be saving for retirement (or at least, investing long term). However, saving for retirement intentionally means you won’t touch that savings until it’s time to retire. This gives your money more opportunities for compounding growth.
A money goal that never gets old is saving for retirement, and there are certain levels anyone can work towards. First, contribute to what your employer will match. Once you’ve reached that goal, contribute 10-15% of your income. Finally, end your goal by maxing out your retirement contributions every year.
#2 Saving for emergencies
I’m sure you already guessed that saving for emergencies would be on the list of money goals to set that never get old…and for good reason! We can’t escape financial emergencies. It’s just a natural part of life. To pretend they don’t exist or can’t happen to us is foolish.
Instead, set a goal to have an emergency fund established. A great starting point is having $1000 put to the side in a high-yield savings account. Once that number is achieved, work on paying down high interest debt. Then come back to this goal and work to have 3-6 months’ worth of expenses saved.
The reason why you would want to pay down debt before saving 3-6 months’ worth of expenses is because your high-interest debt is costing you a lot more money to keep around. Getting rid of it will free up more room in your budget to reach other savings goals much faster.
#3 Pay off debt
As I previously mentioned, keeping debt around costs you more because of interest. Unfortunately, the longer you’re accruing interest, the more debt you have to pay off. That means getting rid of debt should always be a goal…no matter how far away debt freedom seems.
Start by focusing on high-interest, unsecured debt first. This would include credit cards, personal loans, and payday loans. You’ll want to focus on these types of debt first because they cost the most. Just look at your interest rates if you don’t believe me.
Once all high-interest debt is paid off, you’ll want to move on to secured debt. This is usually a debt tied to an asset. For example, a mortgage (the home is the asset), an auto loan (the car is the asset) or student loans. While student loans aren’t technically tied to an asset, they do come with lower interest rates.
The ultimate goal is debt-freedom! That way you can leverage debt to make you more money…but that’s a conversation for another day!
CGS YouTube Video: Things Everyone Should Be Saving For
#4 Add additional income streams
If you have a good flow with your budget and know how to control your spending, a money goal to set that never gets old is to add additional income streams. That way, when you make more money, you can leverage it to help you get ahead.
Remember, the goal is not to make more money only to spend it. That’s why I said you’ll want to have a good rhythm with your budget and spending first. Otherwise, you could drive yourself into a deeper hole, even if you’re making more while doing it.
#5 Start investing in the stock market
Outside of real estate, investing in the stock market is one of the best ways to build true long-term wealth. The historical rate of return for the stock market is 8-10% and is inching higher as time goes by. You won’t get that type of return in a savings account, CD or anywhere else!
I do recommend focusing on some of the other money goals shared in this article before prioritizing investing in the stock market. When you invest in the stock market, the goal is to keep that money tied away for the long haul. If you need that money in the near future, you could end up taking a loss or costing your future self some growth.
#6 Create and stick to a realistic budget plan
The final money goal to set that never gets old is to create and stick to a realistic budget plan. If you can’t manage your money (and the best way to do that is with a budget), it doesn’t matter how much you make or how many goals you set, you won’t see the progress you deserve.
Get yourself to a place where you can create (or have someone create) a realistic budget that you can actually stick to. If you need help learning how to stick to a budget, that’s okay…the point is to figure it out as soon as you can, so you can see progress!
If you need help with this, let me create a budget plan for you! You can also learn about my 1-on-1 money and budget coaching program.
Related: The Best Way to Set Money Goals for the New Year
Each of the goals above are things we should ALL be working on. They are goals that don’t usually end (except for debt, once you’re debt free, the goal becomes to stay that way)! If you’re ever confused on what to focus on with your money, this list should always be in the back of your mind.
Remember, time keeps going, so make the most of the time you have! Are you currently working on any of these money goals? Have you added any other money goals to your life? Drop a comment below to share!
-Raya
The CGS Team
