Did you know that one-third of Canadians are struggling to manage their finances on a day-to-day basis?
This is more prominently the case in those under 65, who frequently struggle to meet their financial commitments. But, with a new year now here and the opportunity for a fresh start, we have the perfect opportunity to turn that around!
You can take control of your finances by setting money goals for 2022. But, the hardest part isn’t always setting the resolutions, but sticking to them!
Find out plenty of tips for how to do this in our handy guide and get your finances sorted.
What Are Financial Goals?
Financial goals are all related to your money and improving your financial position. This could mean growing your savings, investing your excess cash, or creating targets to reign in your spending. The goals you set are entirely personal to you and where you need to improve your money management.
Your goals will often differ depending on what age you are and your current situation. College students might be saving for a new car or pair of shoes, which is very short-term. People in their late twenties may be saving for a mortgage or investing for retirement, which is definitely more long-term.
Why Are Setting Financial Goals Important?
Looking ahead is vital to controlling your money and finding financial stability. If you don’t have a plan, you’re planning to fail.
People who have an idea of how they’re using their money in the future and who create plans to put in motion are automatically more in control. Goals change how you look at your money and help you to think through what you’re doing with it in more detail. Rather than just spreading it around without a plan, there’s a method to what you’re doing, and that’s the key.
You can buy the things you want, retire earlier, feel more secure with your financial position, and reduce stress.
Money isn’t the most important thing in life unless you’re not in control of it. Then, it’s all you can think about. Gain control, and you can focus on the things that actually are important to you and make time for what matters.
Different Examples of Money Goals
If you’re thinking about setting goals for your finances but have no idea where to start, it’s a good idea to look at some common examples. You may find goals you relate to and can inspire your own financial resolutions. Here are a few to get you started.
Budgeting
Budgets help you keep track of how much money you have coming in and going out – your income and expenses. They’ll also monitor your debts and ensure you’re paying them off regularly. A lot of people set goals to create and stick to budgets to give them greater control over their spending.
Creating a Savings Account
If you’re not saving yet, one of your goals should definitely be to start. Everyone should have an emergency fund that can keep them afloat for around three months if they suddenly aren’t making money. Your savings account will also be a savior if you have to suddenly fix your car or buy a new freezer.
Paying Off Loans
Loans, like those we offer at 24Cash, are fantastic to help you stay afloat when you’re struggling. But when you’re no longer struggling, it’s important you set up plans to pay them off.
Saving for Retirement
Many financial institutions recommend that you start saving for retirement as early as possible. If you can, most advice will tell you to start putting money aside for your retirement in your twenties, looking into funds and investments to keep your cash growing over the year.
Increasing Income
Sometimes, savings and paying off loans just isn’t possible because you don’t have the income coming in. In this case, you need to look at ways you can increase the money coming in every month and boost your finances. That could mean getting a second job, going for a promotion, or starting a new career altogether.
How to Set Money Goals
From learning how to save money to starting a retirement fund, there are tons of different goals out there that you could choose for 2022. But, you don’t want to overload yourself with too many targets or you may end up not achieving any! Instead, focus your financial vision by selecting just a few goals that are the most important to you.
To help you set goals, here are some tips.
What Is the Most Important?
Consider what’s going to have the biggest impact on your finances or is the most pressing issue. For example, if you’re constantly struggling to make it to the end of the month, you should look at limiting spending and boosting your income.
What Are the Time Frames?
Split goals into short-term and long-term strategies. Some goals, like starting a budget, you can do straight away, whereas other goals, like investing your money, may be something to begin thinking about but not act on straight away.
Think SMART
SMART is a strategy used to help people set goals. Make your resolutions Specific with plenty of detail, Measurable and monitorable, Achievable and realistic, Relevant to your needs, and Timely.
Use a Budget to Create Targets
A realistic budget will help you work out what you can do now and where you need to make changes to reach future goals. Whatever money is leftover in your budget can be directed towards your plans.
How Can You Reach Money Goals?
Financial goals are notoriously tricky to stick to. It’s no secret that we humans love to spend! But, there are ways that you can make it easier to stand by the plans you set.
Don’t Think Long-Term
Start by setting goals that aren’t long-term. If you’re not used to following financial goals, having a few smaller short-term plans can help you get in the swing of things. For example, you could make it a goal to put aside $30 for the next three months into a savings account, or make it a target to buy something important by the end of the year.
Write Down Your Goals
Write down the goals you set. Create a chart that monitors progress with milestones you need to meet and keep tracking it. By having a physical representation of your targets, it’ll be much easier to remember and stick to them!
Automate Your Finances
If you haven’t automated your finances, now’s the time to start. Create direct debits for your bills, to pay off debts, and to direct money into savings accounts. This reduces the chance of you spending the money on something else instead and makes your goals a priority.
Tell Someone About Your Goals
According to studies, sharing your goals with someone who you think is more successful than you boosts your motivation and makes you more likely to stick to what you’ve said. Find someone who you look up to and discuss your financial goals with them. It may sound silly, but it could be the key to keeping you on track!
Give Yourself Deadlines
If you don’t have specific goals with specific deadlines, you’re going to be much less likely to achieve them. For example, if you say you have a goal to save money that’s far too vague – you’ll probably never end up saving anything substantial! But if you say you’re saving $100 a month then you have a time limit to stick to that makes you much more likely to do it.
Remember Your Why
Everybody has a why when they’re setting goals. This is the reason you want to improve your financial situation, and it’s going to be the driving factor behind your efforts. Keep a reminder of your why somewhere you can keep looking at it, such as at the top of your budget, to help you stay motivated.
Don’t Dive in at the Deep End
Taking on too much too soon isn’t a good idea. If you set yourself targets that push you too far, your motivation is going to take a dive, especially if you don’t end up achieving them! Think small at first to build up your saving stamina.
Are Loans a Good Idea?
Loans are a fantastic way to prevent you from getting in real trouble financially. If you can’t pay your bills or need to repair your car to drive it to work, a quick, no credit check loan is a good idea to help you carry on living. But, they should only be used when absolutely essential and you should always work to pay them back as quickly as possible.
Find Out Your Loan Options Today
When it comes to money goals, you can’t always achieve them until you get your head above water. If you need a loan to keep you afloat, request one with 24Cash today and don’t fall behind on your bills. Use our loans as a cushion while you get on your feet and take control of your finances, creating a secure future you can look forward to.