If you are looking to set a few financial goals, you might also be looking for ways to stay on top of them. The good news is that there are plenty of ways to set yourself up for success. Keeping these things in mind will ensure you do.
Stay Away from Extreme Goals
You may feel like you need to make every goal right away, whether it’s paying off debt, cutting back on spending, or contributing to retirement. However, doing this will only set you up for failure, causing you to feel guilty about your habits, especially if you do not hit everything. It is easy to have an all or nothing mindset, where you feel like you are not successful if you do not hit every goal you have set for yourself. A better approach is to set small goals, and once you hit those, you can move onto bigger ones.
This helps you build better habits that you can sustain over the long run. It helps you feel more motivated, as you will be meeting your personal expectations. A good starting point would be to cut back on your monthly expenses. This will set you up for success when it comes to larger goals, like making bigger contributions to your retirement accounts. One way of cutting back on monthly spending is by refinancing your student loans into a new one. A NaviRefi student loan refinance can be an excellent starting point.
Make Your Budget Work for You
Get an idea of your current spending habits and expenses while setting your budget. That way, the goals will be realistic for your circumstances. It can feel daunting to track spending, but it might be a good idea to begin with a monthly spending plan. Go over credit card statements and bank statements to see how much is going out each month. It is possible to save money with a low income so don’t let the numbers discourage you even if they aren’t as high as you hoped.
Budgeting apps can also be helpful, as they connect to your bank account directly. They can then find out how much you are spending and even break it down by category. Some banks also have budgeting features, but this is helpful generally only if you use the same banking institution for all your spending. The idea is to get a general idea for your budget, not an exact dollar amount for everything.
Understand There Will be Financial Surprises
It feels great to make progress toward your financial goals, whether it is paying off your debt or hitting a certain savings milestone. However, don’t beat yourself up if you have a financial emergency that can undo some of your hard work. Just because you meet a goal does not mean you are a failure if you can’t maintain it for some reason. When it feels like new expenses are always coming up, it may feel hard to get ahead. However, having your emergency fund in place can help offset the financial impact of these unexpected occurrences. Have a plan in place to replenish your emergency fund if something does come up.
