We want it all, don’t we? A nice house, a nice car, lavish vacations and a closet that would make Kim Kardashian jealous. But how do we get it all when our finances aren’t in order? The reality is, you don’t need a six-figure salary to live comfortably, and you could make a million dollars a year and not be stable. It’s all about what you do with the money you do have and make. Directing your dollars with purpose allows you to reach all those financial goals you have. The CGS Team is sharing a few tidbits to help you get on the right financial track.
Direction #1: Get Specific
We’ve talked about this before. Setting specific goals that you can actually visualize is a very important step in reaching those goals. Write down what your goals are and include their monetary value. This helps you understand exactly what you’re working towards.
If your goal is a new car, ask yourself the following questions: Do I want to finance? Do I want to buy new or used? Is leasing an option? What kind of car do I want? The level of detail needs to be this specific and more, if possible. Once you understand exactly what your goals are and how much they are going to cost, you can move on.
Direction #2: Set Up Savings Tactics
A goal without a plan is just a wish. You can have all of the goals in the world, but if you don’t have a plan to reach them, how can you truly achieve them? According to personal finance expert Farnoosh Torabi, “Every goal has a price tag; the sooner you narrow it down, the sooner you can plan, save and make it come true.”
If your goal is to save for retirement, make sure you are contributing a fair amount to a 401k or IRA. Refer back to your specifics to determine how much to save. If you want to travel next year, create a savings account for traveling and deposit a monthly amount into the account, to help pay for your trip.
Direction #3: Think About The Future
Marriage and kids may seem far away, but thinking about your future now can make a huge difference down the line. If you know you will have kids in the next few years, why not start saving up? When the children do arrive, start contributing a small amount to a 529 college savings plan. There is nothing wrong with living in the present, because nothing else is guaranteed. However, think about the legacy you want to have and leave as you do get older.
Direction #4: Assess Your Current Situation
You need a budget! Everyone needs a budget! A budget shows you what’s going out and what’s coming in. Use it to assess your current situation. With your current spending, can you reach your goals? Do you need to adjust how much you save so you can fund your goals? Look at your budget and see what you can stop spending right now to help you achieve your goals for the future.
Financial freedom is achievable, regardless of how much you actually make! Get into the habit of directing your dollars with purpose. Understand your goals and how you can reach them. Find a balance between living in the present and saving for the future. We know you can do it, and we are happy to help! What financial goals are you currently working on? How do you plan on reaching those goals? Share with us by leaving a comment below!