5 Financial Tips To Help You Achieve Your Goals
Social media is all about trends and challenges. One such challenge that trended last year was the #10yearchallenge. You might have guessed what it is or even got on the bandwagon and posted your #10yearchallenge where you showed your transformation with a picture that was 10 years old alongside your recent click. While this challenge in itself was a reminder of how starkly a decade can change us, the same applies to our finances.
Whether you went uphill in the 10 years or just starting, make sure you give yourself a good 10-year challenge, but this time to achieve financial goals. It may not be the ‘it’ thing, but this will certainly help you build a strong financial foundation and be tension-free a decade down the line.
What kind of challenges can you give yourself?
When it comes to money goals, there are plenty of things you can put your mind at and achieve it. Right from building a cozy and cushion-y retirement corpus to paying off your student loans (if you have any) to pay that huge home loan earlier than you intended. Kind of like putting a stretch goal to your already in-action financial goal. A stretch goal is something that you set for your expenses or any other thing, to give you the push to achieve that particular goal earlier than you intended.
Suffice it to say, the 10-year challenge should be as per your convenience and what do you want the most. If you want to see every inch of the world before you turn 30 or 40 and you want to save for that as your challenge, then be it.
Once you have decided on your goal, the next thing is financial goal management. However, daunting the task of your financial challenge might seem right now, with careful preparation and planning, you can achieve it. Here are 5 financial tips to achieve your goals .
1. Start Budgeting and Saving
A lot of youngsters skimp on saving and budgeting. It involves writing down your monthly expenditure and cutting costs; this is not a top priority for a lot of people. Don’t be one of them. Be the person who takes charge of their money early on and in 10 years, you will find yourself better off in terms of financial independence.
Make sure you create a budget, stick to it and spend within your means. New shiny material like a phone, blingy dresses might look like an important thing but stop for a few minutes and deliberate on do you need it. If not, you can instead add that money to your savings account . Open one with digibank by DBS to get 5% interest rate p.a and hassle-free account setting.
2. Create A Contingency Fund
The pandemic might have put this in perspective, but it was already important to have a contingency fund . If you don’t have one right now, you can put this as part of your 10 or 5-year challenge and create one that at least covers your lifestyle expenses for the next 6-9 months. It will come in handy when you are going through a crisis and need extra money.
3. Build A Corpus For Retirement
A retirement fund is a long-time investment and can easily be a part of your 10-year challenge. Of course, if you need 20 years to build a strong retirement fund, you can take that time.
But with equity-related mutual funds and other tax-saving schemes like NPS and PPF, you might hit your target for the retirement fund, earlier than intended. Give yourself this challenge to see if you can do it.
4. Try And Pay Off Your Debts And Loans Earlier
If you have crippling debt thanks to credit card, EMIs and other miscellaneous expenses that needed borrowing from friends, make it a priority to pay it all off as part of your 10-year challenge. An important part of financial goal management, paying off debt is not only good for your credit score but also your peace of mind.
Once you do have all the debt out of the way, make sure you don’t fall for it again and steer clear of accumulating any kind of debt.
5. Be Accountable To Yourself About Your Goals
A crucial financial tip apart from start budgeting right now would be accountability. Just like when you are hitting the gym to get in shape, you need to be mindful and accountable of what you are putting in your body, you need to do the same when you are giving yourself a 10-year challenge and following through it.
When it comes to money management and building a strong financial future, you do you. There is no other person who can make you do this. Thus, accountability and keeping yourself in check will help you go a long way.
Apart from this, make realistic goals that are a little tight but well-achievable. Become self-aware, try the minimalistic way of life keep re-valuating all your goals now and then. When you do this, you will know where you need to make changes to stay on track and smash those goals.