Last Updated on February 23, 2021
2021 has already started and you are probably still thinking about all the money you wanted to have saved during 2020 and couldn’t. Not that you didn’t try, you just made a poor choice of how to spend it. Now you have to make yourself a question: where do I see myself in the future? You want to buy a house and have a big dog running happy across the yard? You want to finally be free of that student loan debt? Stop the madness of your credit card bill? To achieve these goals you need to set some financial goals. Some smaller, other bigger, but this is crucial if you really want to live a more comfortable life when it comes to money. Setting financial goals is the best way for you to understand why you are even saving that hard-earned money! Do you know that 85% of people make great plans for their financial future, but do almost nothing to achieve them? If you want to make your financial dreams come true, keep reading this article, as I’ll tell you 5 steps to setting your 2021 financial goals.
1. Your money needs a “job”.
At your job you have to set goals, either daily, weekly, monthly or even for some years. These goals are things you want to achieve in your future. Well, you have to understand that your money’s job is to help you achieve your financial goals, either if buying a house, a car or pay your credit card bills. But just like your job where you have to adapt your goals for various reasons, the same happens with money goals. They will change throughout your life and you have to adapt them for your current situation. The only thing you can’t change is to keep making financial goals.
2. Think about short-, mid- and long-term financial goals.
Imagine your life. You probably have those three categories. Short-term goals, mid-term goals and long-term goals. For example, buying a new phone next christmas, pay your car and buy a beach house. You need to do the same with your money and financial goals but instead of thinking about things, you need to use a time measure. Set short-term financial goals for the next 6 months to 5 years; mid-term financial goals for the next 5 to 10 years; and long-term financial goals for more than 10 years from now. The sooner you set these goals, the sooner you’ll start saving money.