Money is one of the most stressful factors in people’s lives to manage. Many people believe they do not have enough of it. Others are unsure how they will pay their expenses. Others are still con-cerned about their retirement and whether they will have to work for the rest of their lives. There are other folks who live pay cheque to pay cheque and are anxious about meeting their critical financial goals. Despite the fact that budgets are the best way to get control of your finances, they sometimes scare people because they fear they no longer have control over their money.
Defining Financial Goals
Financial goals are priorities that you set for yourself in order to accomplish some financial results. They mainly centre on money and how to save and spend it. Because everyone has various priorities, everyone has distinct goals. Your objectives may alter over time as your priorities shift as a result of what is going on in your life. When you don’t set financial objectives, you wind up spending money in places and amounts you are unaware of. Financial goals are crucial since they assist you in achieving a specified outcome. They may also assist you in developing a step-by-step approach to get the desired results. They assist you in resisting impulse purchases while keeping track of how much money you spend and where you spend it.
There is a terrific framework known as SMART that you may utilise when building a strategy for financial objectives in order to reach financial goals. It is an abbreviation that stands for Specific, Measurable, Achievable, Relevant and Time-Bound. Assume you wish to put money towards your child’s degree college. Here’s what it would look like if you followed the SMART principles:
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