9 Short Term Financial Goals That Will Boost Your Future
Did you know four in ten U.S. adults have been laid off or taken a pay cut since the start of the Coronavirus pandemic? About 50% of working adults say the pandemic has affected their ability to reach their short term financial goals.
Are you struggling to meet your annual financial goals? You can start making a change by creating some short term financial goals.
This guide will discuss some achievable goals you might want to set for yourself. Keep reading to learn what they are.
1. Start With a Budget
The first goal you should set for your financial future is to create a budget. A monthly budget is one of the best ways to get on the track to financial freedom.
Once you account for every dollar in your paycheck, you’ll be able to see some of the financial mistakes you’ve been making. Once you’re able to budget for necessary spending, you can calculate how much you have left to spend on things you want and what you can put into saving for the future.
2. Cut Out Luxury Expenses
One of the most important short term financial goals you should have includes cutting unnecessary spending. While it’s important to use some of your hard-earned money on things you enjoy, excessive spending will never lead to financial stability.
Once you’ve created a budget, you’ll be able to see where you spend the most. Tracking your spending can help you determine where you can decrease expenses.
Canceling memberships and subscriptions you don’t use is one of the best ways to cut back on spending. Consider canceling a gym membership you don’t use more than once a week. There are ways to work out at home.
If you subscribe to multiple streaming platforms, consider whether you watch enough TV to keep all of them.
3. Make Your Will
Creating a will is an important part of securing a financial future for your family. While you might rather put this off, finalizing a will won’t leave your loved ones in financial uncertainty. If a sudden death occurs, a will makes it easier to distribute your assets as your family grieves.
Creating a will isn’t as complicated as it may seem, many trustworthy companies can help you complete the entire process online.
4. Earn a Second Income
An important part of improving your financial health includes increasing the money you earn. You can do this by finding a way to earn a second income.
While you can look for another job to do after your traditional nine to five, there are many new ways to earn a second income today. Gig work and work-from-home options have made it easier for you to earn money whenever you want.
Consider starting a side hustle delivering groceries or walking dogs when you aren’t at your day job. You can also work as a freelancer in content writing, graphic design, or as a virtual assistant. The options are endless when it comes to increasing your weekly income.
5. Start Investing
Investing has become more accessible in the last few years than ever before. If you aren’t sure how to start investing, many apps make investing easier.
Some of these apps offer to take a percentage of your weekly paycheck and invest it for you. The great thing is you can invest as little you’d like if you’re still trying to reach financial stability.
Employer-sponsored retirement accounts are another way to start investing. An IRA retirement account allows your money to grow tax-free.
6. Pay Off Your Debt
While paying off all your debt might be a long-term financial goal, paying off a small part of your debt can be an achievable short-term goal.
If you’ve already incurred a mountain of debt, you understand how much harder it becomes to achieve financial wellbeing.
You can start by paying off one of your credit cards with the highest interest rates. This will decrease the amount you end up paying back and make it easier to pay off the rest of your debt at a later date.
7. Start Saving
Saving is the ultimate financial goal for many. It ensures you have a secure financial future. Starting a savings account can be hard when you’re living from paycheck to paycheck.
If this is something you struggle with, starting small is the best way to go. Something as small as 10% of your paycheck can make a difference.
Set up a recurring transaction to have that 10% transferred into your savings account automatically every week. This way, you’ll start saving without having to put in too much effort.
8. Meal Prep Your Dinners
While making dinner at home might seem more like a nutrition goal than a financial one, this is one way to cut back on spending.
When you live a busy life, cooking meals at home every night isn’t the easiest thing. Not having enough time to cook means that you’re likely to buy lunch and dinner after work.
Meal prepping for the week is one way to cut back on eating out and spending more than you should on food.
9. Get Help From a Financial Advisor
If you want to learn how to set financial goals, one of the best things you can do is talk to a financial advisor. A financial advisor can help you find ways to achieve your short-term goals.
They’ll also help you create long-term financial goals and achieve more financial stability. Check out hensoncrisp.com to learn more.
Short-Term Financial Goals You Can Achieve Today
If you’re interested in setting some short-term financial goals, you’ll find great tips in this guide. Starting a savings account and talking to a financial advisor are small goals to help you with your financial future.
While we all dream of having a large nest egg, achieving your short-term financial goals can be more difficult than it seems. If you plan on retiring in a few years, you should consider your retirement plans and decide on how much you can afford to spend on each item each year. Then subtract the income from retirement plans, pensions, and Social Security. The amount that remains needs to be covered by your investment portfolio.
One of the best short-term financial goals you can set is to build an emergency fund. This money should cover three to six months’ worth of living expenses. You can begin with a small amount, like $500 or $1,000, and increase this amount as needed. This money will grow over time and serve as a buffer against any debt that might arise. It will also help you establish a healthy saving habit. By setting small, attainable goals, you will be more likely to reach your short term financial goals.