We all set financial goals, but many people who manage to achieve their goals do it late. This is because they do not know the secrets that allow them to reach their financial goals on time or earlier than they expected.
What are these secrets? How do you use them in hitting your goals? Find them in this article.
What Are Financial Goals?
Financial goals are defined milestones in your finances that you intend to reach within a specified period. They help you find better ways to save your money and get more value for the money you spend. Financial goals apply beyond just your personal life, they extend to work, family, and many other areas in your life.
Stages Of Financial Goals
Financial goals differ in stages, according to their time frames. The efforts and resources needed for a 6-month financial goal will differ from a 3-year goal. These are the stages of financial goals:
Short-term financial goals
Mid-term financial goals
Long-term financial goals
Short-term Goals
Short-term financial goals are financial targets that you set to achieve within 12 months. What are some short-term financial goals? They include raising your credit score, paying off a debt, buying household items, completing academic fees, etc.
Mid-term Goals
Mid-term financial goals are the ones that you set to achieve within five years. They often focus on accelerating your financial life. These goals often require more discipline, smarter strategies, and hard work, compared to short-term goals. Some of these mid-term goals include saving up for your child’s tertiary education, saving up for a home purchase, starting a business, etc.
Long-term Goals
Long-term goals are financial objectives that you plan to hit in any period above five years. These goals mostly focus on retirement, wealth building, financial independence, etc. What are some long term financial goals? They include achieving financial independence and retiring comfortably, paying off a mortgage on a home or other property, and saving for a child's wedding or other major life events.
Steps To Reach Your Financial Goals Quickly
Follow these steps to reach your financial goals quickly:
1. Define your current financial status
2. Categorize your goals into stages
3. Clear off debts as quickly as possible
4. Save on transactions
5. Leverage free money
6. Get an accountability partner
7. Diversify your portfolio
8. Believe in yourself
1. Define Your Current Financial Status
You cannot run a 1000m race without checking your strength first. You need to access yourself financially and come to terms with your current state before embarking on a financial goal journey. Your personal assessment helps you see your needs, weaknesses, strengths and opportunities.
2. Categorize Your Goals Into Stages
Divide your financial goals into long-term, mid-term, and short-term goals. Categorizing your financial goals helps you to know the strategies and resources you need to achieve them. It helps you effectively set a plan to reach your financial goals faster. Once you divide your goals, you will be able to set KPIs to monitor your performance.
3. Clear Off Debts As Quickly As Possible
Debts have a unique way of slowing down your financial goal achievements. The sadder thing is that the longer they last, the more they hamper your financial state and opportunities. This is why you must clear them off as immediately as you can, so you can drop dead loads and run with speed.
4. Save On Transactions
As you plan to hit that financial milestone, the last thing you need is an avoidable expense. Always seek ways to get more for less. Compare between reputable competitors before transacting. For instance, Kyshi only charges 1% for every transaction (your first transaction is FREE), compared to the 3% average by most money transfer services and you could be saving 67% savings on transaction fees You can also reduce your tax rate and save more by proper tax management.
5. Leverage Free Money
As you journey to financial independence or achievement, free money opportunities will pop along the way. It is best to grab them really quickly. Some of them include referral programs, like Kyshi's referral program where you earn at least $20 for each person that signs up on Kyshi with your referral code. Free money also comes with employee benefits like your 401K plan.
6. Get An Accountability Partner
They say a tree cannot make a forest. Sometimes, your self-discipline may not be enough. Situations arise where the options bend our decision and discipline to their terms. But an accountability partner helps you stay true to your course till you achieve your aim.
7. Diversify Your Portfolio
According to American entrepreneur and motivational speaker Jim Rohn, “The average millionaire has seven streams of income.” Let the money you have go out to different financial farms and work out more money for you– get a side hustle, invest. This way, you can reach your financial goals quickly.
8. Believe In Yourself
There is no way you can achieve your financial goals if you don't believe in them. You have to trust that you can achieve them as quickly as possible. Your self-belief spurs you to be creative and discovering, to learn and invent strategies to meet your plans early enough. You must believe in yourself!
Conclusion
Financial goals are important for everyone desiring to build their wealth. However, while you grow your finances, remember to answer these questions:
- What is the purpose?
- How much money do I need?
- How much time do I need?