Firstly, wishing all our readers and friends out there a glorious and peaceful 2022 from Team Defynance!
2020 began with COVID-19, the traces of which were quite evident in 2021. Since 2020, we have learned our ways with covid and are determined to not just survive but also thrive as humans. The world continues to conduct business and research, provide education and medicare facilities, travel and celebrations as we gradually conduct our lives meanwhile accepting the existence of this virus.
As we usher in 2022 with great hopes, most of us have enlisted a bunch of financial goals we aim to achieve. Let's draw a simple yet effective path towards conquering your goals.
Setting Reasonable Goals
While it might be good to have a high-spirited head start, you might also want to reconsider any of your overambitious goals. The aim here is to set reasonable benchmarks which will enhance your overall financial strength. Having a rational goal could prove to be a good point to start with. Another important facet to remember would be to keep your goals dynamic. They should be flexible enough to adapt and modify to accommodate external environmental changes.
Categories
Long-term financial goals and short-term financial goals are the two main categories to consider, depending upon the target date set to achieve these goals. Six months to one year for a short-term goal and anything beyond one year would fall under the long-term goal category. This segregation would help you in prioritizing and channelizing your funds. A key to determining the category could be the additional costs that will be incurred due to the time factor. For example, paying off a debt with a cumulative interest rate would be a priority over buying multiple properties from an investment perspective.
Budgeting
Draw up a budget considering your income and expenses. A budget enables you to view and understand your expenses with specifications that otherwise might go unnoticed. It is an effective tool to track your spending and make necessary modifications as necessary. Consider raising your saving percentage which might help you contribute more towards your financial goal. Most importantly, try to stick to your budget.
Resource Allocation
To maximize the benefits from your resources, you need to allocate them in the most efficient manner. You might have agile funds which remain uncalled for in your saving account. These are required to maintain liquidity in case of an emergency. However, some portion can be invested in funds that provide liquidity as and when required. In a way, try to put your idle funds to work and grow your earnings. Also, evaluate if your existing investments can be utilized to get rid of any debt.
Prepare for Failure
Let's not forget there are fair chances of falling short in achieving your goals. Although, this possibility of failure should not refrain you from giving yourself a chance or a second chance if need be. You can always re-evaluate your steps, find out the errors and fix them to reach your goals. Even if the goals remain unachieved, you can take lessons for your future plans.
Things to Avoid
Being ambitious with your efforts to achieve financial endeavors can be challenging at times, however, a strong will can get you through tough times. Meanwhile, it is important to remember to cherish other aspects of your life like your family and health. Chasing your goals should only be a part of your life and not the whole purpose of it. Avoid making comparisons with others as everyone has their unique set of abilities and setbacks. Lastly, avoid replicating anyone's goals and their journey to achieve them.
Have any questions or need help to achieve your financial goals? Reach out to us with your questions and help us help you achieve your goals.
