I have been thinking a lot about financial goals lately. Mostly, because I realized that i have a lot of work to do in that area.
Back in early 2020, when I decided to leave my husband, I was not in the best financial shape. Then I acquired a lot of debt with the divorce that followed. Followed quickly by a sizeable pay cut when I decided to quit my job, pack up everything and move to Florida.
I have been in Florida now for two years, and while my finances have improved, it has been a very slow process (damn finance charges!!). Now that I feel as though I am coming out of survival mode and breaking into thriving mode, I think it is time to set some financial goals that are both safe and challenging.
Safe because I am 48 and don’t want to gamble too much with my retirement. Challenging because I want to figure out how to get the biggest bang for my buck (literally).
When thinking about financial goals that you could set for yourself, consider these five examples:
Save for an emergency fund: Start by saving a safety net of $1,000 so you are able to stop using credit cards for emergencies. Aim to save three to six months' worth of living expenses in a separate, easily accessible account. This fund can provide a safety net in case of unexpected events like job loss or medical emergencies.
Pay off debt: Focus on eliminating high-interest debt first, such as credit card balances. Set a timeline and specific amount to pay off each month to gradually reduce your debt burden. Use the snowball method to help pay off debt faster.
Invest for retirement: Contribute regularly to a retirement account, such as a 401(k) or IRA. Take advantage of employer matching contributions if available and consider consulting a financial advisor to determine the best investment strategy for your goals.
Save for a major purchase: Whether it's a down payment on a house, a new car, or a dream vacation, setting aside a specific amount each month can help you reach your goal without resorting to credit.
Build a diversified investment portfolio: Research different types of investments, such as stocks, bonds, mutual funds, and real estate. Diversifying your investments can help spread risk and increase the potential for returns over time.
Setting clear, achievable financial goals can pave the way to a secure and prosperous future. Remember to review and adjust your goals regularly to reflect changes in your life circumstances and financial situation.
Do you have any financial goals that you want to share?
