If you’re trying to gain your financial footing, making realistic goals or financial planning is critical to success. Not only will making goals give you a measurable objective to work for, but you’ll also learn the fundamentals of financial planning and start taking your first steps toward improving your financial literacy and becoming a more effective manager of your money.
However, a lot of people don’t know where do start when they’re making financial goals and with this in mind, following are some quick and easy ways to help you make financial goals that will benefit your life and wallet.
Start Out Simple
The first thing you should do when you’re trying to make realistic financial goals is start out simple. For instance, maybe your first goal is to save enough money in a bank savings account so that if you lost your job, you would have six months of living expenses saved in the bank. Or maybe your first goal is to save for a new gadget or gift for a loved one. Not only would these goals give you a set objective to work toward, but you’ll also be able to invest in something at the end of the day or have savings set aside for anything you might need in the future.
Open A Money Market Account
After that, a good goal you could work toward is to take the money that you had been saving and use it to set up a money market account, then a mutual fund account, an individual retirement account and anything else you’d want to create. Once you have a solid understanding of how these different financial services work, you’ll be able to manage your money more strategically and effectively.
If you’re especially determined, you may even want to dabble into options trading. In recent years, relatively easy-to-use software has been developed to help everyday people make daily small, low-risk, low-reward trades on the options market that ultimately add up to a hefty sum.
Share Your Goals With Others
Simply put, the more people you share your goals with, the more account holders you have in terms of keeping you on task. Your friends, family and co-workers are all ideal people that you could end up sharing your financial goals with in order to further motivate yourself and potentially others. In fact, some of the people you share your financial goals with may end up getting motivated to do their own financial planning, fostering a community of finance-minded people that you can talk to about finances in the future.
How To Stay Motivated
There are a lot of different ways to get yourself motivated, and it really comes down to what you value individually. However, one great way to motivate clients is to have them visualize the cost to them of not doing the things they need to do to meet their goals. For example, the prospect of having to work during retirement has often been the number one idea to motivate clients to stay on track when it comes to their retirement savings.
Gregory M. Reed is a Certified Financial Planner (CFP®) and a member of FINRA and SIPC, who works with Raymond James Financial Services, Inc. You can find him at 3201 S. Providence Road, Ste. 102 in Columbia, Mo 65203 or contact him at 573-777-1934. Visit his website for more information about financial planning.
The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Gregory M. Reed, CFP® and not necessarily those of RJFS or Raymond James.