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At the beginning of the year everyone is looking to reset when it comes to their finances but no matter when you are reading this, you can always start over or pick up where you left off. So if you don’t know where to start here are 4 quick steps to reaching your money goals this year.
Write out your money goals for the year.
There should be no more than 4 for the year and it’s best to focus on only one goal per quarter. It’s easier to achieve your goals when you put all of your efforts toward one goal at a time instead of focusing on multiple goals at once. A quarter is 12 weeks, so you can break down your goal into smaller goals. Also, make sure your goals are SMART (Specific, Measurable, Achievable Realistic and Time-based). For example, I plan to pay off $10,000 in credit card debt by December 1, 2019.
Check your checking and savings account balances along with any debt balances you may owe.
No matter what your goal is, you need to identify your starting point so you can track how far you’ve come. Your current balances will help you calculate how much money you need to contribute to reach your goal.
Create a spending plan that is aligned with your goals.
You can’t expect to reach your money goals without a plan and that is what a budget provides you. A budget is a plan for how you are going to spend your money. You should assign some of your income to your money goal, so if your goal is to save $5,000 this year there should be a line item in your budget for savings.
Find additional ways to bring in more income to help you reach your money goals.
Cutting expenses are great but you may achieve your money goal faster if you bring in more income. There are several side hustles you can do to help you bring in additional income. Here are a few resources on side hustles you can check out to bring in more income.
If you follow these 4 steps you will reach your money goals and even if you do get off track, it’s easy to pick up where you left off. Go ahead and start now so you can get what you want this year.