Four Money Goals You Need to Set This Year

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Those who set and met their money goals are going through this challenging time of Coronavirus with confidence and ease. For the rest of us, we might be moving in constant fear and worry that the limited money and income source we have will not last us through this pandemic and its after-effects. Here are four money goals you need to set this year.

The good news is it’s not too late. No matter how little or how much money you have, you can start working on these money goals that will give you peace of mind and comfort, regardless of the season. Remember that money is only a tool and not an end in itself. It should be to support your goals in life, instead of it being the only goal. Take note that the following money goals should be met one after another, like carefully climbing a ladder.

Money Goal 1: Have a budget and stick to it.

Start by spending a whole month just listing down every expense, down to the last cent. At the end of the month, tally all your expenses. Now you have an idea of your spending. From there, check if what you’re spending is actually below your income. If it is, congratulations and keep up the excellent work! If it exceeds your income, adjust.

For instance, while you cannot control the amount of mortgage you’re paying every month, you can manage your spending habits on food. Put a cap on every variable expense, so that for the next month, as you list your expenses, you will be more conscious about whether or not you are exceeding your budget.

Money Goal 2: Pay off debt.

Your budget should include debt repayment. Before you think about investing in a new business or putting more cash in stocks, you should first cancel all your debts. It will be counterproductive to place money in earning streams, while your debt continues to accrue interest.

This starts with Goal number one, which is having a set budget based on your expenses. From this, you can set aside an amount that you can commit to debt repayment. Plot it on a timeline, so you know when your debt repayment ends. Once you finish off paying your debts, you can move on to allocating your money to income-earning streams.

Money Goal 3: Set up an emergency fund.

It can’t be stressed enough – you need an emergency fund. It applies to your personal finance, and it’s also one of the top business finance tips. Perhaps you are experiencing right now the consequences of not having at least six months’ worth of your expenses. If so, don’t get into debt anymore. Live below your means, as getting into debt will only enslave you into a tiring rat wheel.

Your money goals should be higher than “be able to afford Starbucks,” as that can only tempt you into spending money for expensive but unnecessary things at the moment. Instead, one of your goals should be to slowly but surely build your emergency fund. Again, taking off from a set budget that allocates a reasonable amount for every expense, squeeze in some amount for your emergency fund. It doesn’t have to be a significant amount, as it can be too intimidating and challenging to follow through.

Money Goal 4: Create multiple income streams.

Side hustles, investments, new businesses – there are a lot of ways to earn money aside from your current source of income. It gets tricky once you open your eyes to the many possibilities. Don’t spread yourself too thin, and focus only on what you can give time and attention to.

If the Coronavirus halted your business, spend this time exploring where you can put your extra money, whether or not you have it already. You need to do extensive research by reading up, watching videos, attending online courses, and getting mentoring. Starting is always challenging; it’s like building a new car from scratch. However, once you have your income streams up and running, it will be like driving on cruise control.

What a time to be creating money goals. Because of the current crisis we are in, we are forced to evaluate and work around our financial crisis. Now with better foresight thanks to experience, you can create and go for money goals towards financial freedom.

The good news is it’s not too late. No matter how little or how much money you have, you can start working on these money goals that will give you peace of mind and comfort, regardless of the season. Remember that money is only a tool and not an end in itself. It should be to support your goals in life, instead of it being the only goal. Take note that the following money goals should be met one after another, like carefully climbing a ladder.

If you are seeking more advice on how you can repurpose your business or more business planning so that it would snugly fit into the present world situation, Annette & Co. is here to offer you a FREE consultation ????. Annette Ferguson – Chartered Accountant and Certified Profit First Professional – can help you unlock financial strategies to improve the profitability of your business amidst an economic crisis.   

Before you make any drastic decisions, seek out a professional’s opinion. You can also follow us on any of our social media channels

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Annette Ferguson

Annette Ferguson

Owner of Annette & Co. - Chartered Accountants & Certifed Profit First Professionals. Helping Online service-based entrepreneurs find clarity in their numbers, increase wealth and have more money in their pockets.