How to achieve your financial goals in 2020
If you're of working age, gaining financial freedom is probably one of the resolutions you’ve set for yourself in 2020. Whether you want to save a bit more or settle a massive debt, it's never a bad idea to set financial goals. But setting the goal is the easy part - the same can't be said about reaching it.
It would be unfair to assume that a lack of discipline is the only reason someone would abandon a goal they set. The truth is a bit more complicated. Like any other goal, reaching financial freedom requires a fair amount of planning. The only way to sway the odds in your favour is doing plenty of preparation.
Here's how to stick to your financial goals:
Long-lasting financial freedom doesn’t come overnight. Undoing the damage caused by bad spending habits or unforeseen circumstances takes some time. Don't expect your financial situation to change at the snap of a finger. Commit to the process, no matter how long or tedious it is, and you can expect to see results worth celebrating.
Review Your Spending
Tracking your spending is the first step to figuring how to use your money better. Print out a three-month banking statement and have a look at where your money goes. You might think you don't have any more money to spare, only to find out you're being weighed down by unnecessary expenditure.
Cut Your Costs
If a raise at work isn’t on the cards any time soon, cutting costs is the next best way to put a little something extra in your pocket. For instance, maybe you're spending too much on your car insurance premium or home insurance and would like to find a more affordable insurer. Identify your biggest monthly financial responsibilities and do your best to decrease the amount of money you spend on them.
Look for Another Income Stream
Wouldn't it be great to plan your financial future with the peace of mind that comes with having multiple income streams? Financial planning is a bit simpler when you aren't trying to stretch one salary to its limits. While you're planning to save more and pay off your debt, think about how you can monetise your other skills and passions.
Take the Effort Out of Saving
There's something about transferring money from one account to another that makes your heart sink. The process of taking money from your cheque account to your savings is short, but it's just enough time for the devil on your shoulder to whisper, "Are you really going to put away that much?" The solution is simple: debit orders. No need to fight temptation when you don't have to. Set an amount and pick a date (preferably payday) and let the amount be deducted before you even have an opportunity to miss it.
If gaining financial freedom wasn't on your list of New Year's resolutions, it's not too late to give it a go. The sooner you do it, the sooner you can live your way.
MiWay is a licensed insurer & FSP 33970. Ts & Cs apply.