As we tend to enter in 2019 many people will be reorganizing, learn from their mistakes from last year, ponder upon what goes right and what goes wrong. This is also the best time to reset your financial goals and figure out how can you do better in 2019? Well, this a very important question but very tough to answer. At truebanker, we try to present some suggestions that you may want to follow. The information we will be outlaying here will encourage you to set realistic financial goals.
These tips will help you end 2019 even more financially fit than you are are now.
Let's talk about setting financial goals for 2019
1. Wants - Identify what you really want
You may be anticipating big expenses in 2019, or want's to plan a long overdue vacation, or wants buy a house or get married. Whatever your wants are for 2019, but always try to make reducing your debt a priority instead of piling more debt. Decreasing your debt over time can significantly increase your overall wealth in long term. But, then questions arises, how to decrease the debt? simple answer would be to earn more cash. Try these few ideas to earn extra income in 2019.
2. How is your current financial situation
Once you have set your priorities, suppose your priority for 2019 is to reduce your debt and earn more, then next step is to figure out your complete financial situation.
To obtain a clear picture of your current financial situation get all of your last year credit/debit card statements, bank statements, extra income, salary, any investment and everything you feel is important that can project your financial health. To do that you can use either a mobile app, or just an excel spreadsheet. After that you would be able to figure out your total assets and liabilities, in other words total income and expenses. This way you would be able to figure out your yearly cash flow. This data can tell you that Are you spending more then your are earning? Are you saving enough? Can you afford huge expenses in 2019 or not?
3. Set SMART goals
When creating your goals keep this word "SMART" in mind. It will help you set realistic financial goal.
S - Specific
M - Measurable
A - Attainable
R - Realistic in Time and Skill
T - Time-bound
I will reduce my expenses by ₹1000 per month in 2019, by not ordering food online or will not shop expensive brands. For first 6 month i will save ₹6000 and will try to pay and reduce my car loan using that amount and in next 6 month i will save ₹6000 and put it into a fixed deposit account.
In this example you can see clearly that this goal is specific and you can measure the progress every six months. Also this goal is achievable(Attainable) and you are not making any extra efforts to do that. You can also see, that goal is realistic, what you have to do is just not shop for expensive brands or order expensive online food. This goal is also Time Bound, as you wanted to do this in year 2019.
4. The Plan
Now your goal is set, finally you have to create a plan. Plan creation involves what you will actually do to achieve your goal, means what activities you will do. Focus on you activities. For eg, I will cut my expenses, I will not shop for expensive brands, I will save and do not use that cash for other use, I will reduce my debts.
If you won't be able to save enough, then you can add in your plan to earn extra income by doing a part time job, or work as freelancer.
5. Stick your goal on your mirror or set a weekly reminder on your phone.
Visualizing your goals everyday, helps you reminding about it. This way you won't be able to forget after passing few months in new year. This will be a powerful motivation for you to stick to your plan and a reminder of your goals that you wanted to achieve in new year.
Discuss your financial goals with a professional you trust. Reach Truebanker.in or write us a comment so that we can refer you to a financial professional in our network.