If there is one goal that most people have set for 2022, it would be getting in a better financial position. Even if someone has a great income and feels comfortable, I think that the past couple of years have taught us that comfort from paychecks is never enough. You need to be SET in your savings accounts, with little to no debt, as well, to feel truly comfortable. With that being said, I have a few tips for those of you who are trying to get their financial state in tip-top condition. Here are some tips:
Separate needs from wants
If you are trying really hard to reach some financial goals this year, youโll need to separate your needs from your wants. Do you really NEED a new car, or do you just want one? What about those $200 pair of boots? Of course, there is always time for wants, but make sure you create priorities.ย
Avoid goals that are too hard to reach
Just like any other goal that you might be setting, make sure you arenโt aiming too low or high when it comes to your financial goals. It can be easy to feel like you need to achieve all your financial goals at the same time. Maxing out your retirement contributions, paying off thousands of dollars in debt and limiting your discretionary spending so you can save more. They are all goals, right? But setting goals that are likely beyond your current reach can actually set you up to fail, if you donโt hit those marks.
One of the difficulties with goal-setting is โall or nothingโ thinking. Itโs an extreme mindset, and when we do things like that, we set ourselves up for failure because we donโt take into consideration all the grays of life. If your goal is to save $500 a month, but you havenโt even started saving $50 a month, it will be very hard to take the necessary steps to review your budget and make sure you actually have an extra $500 to save each month. Setting goals that are more doable for your personal circumstances (even if they feel small), like saving $50 per month, allows you to build healthy financial habits that will be sustainable long-term. This way, you can feel motivated when achieving your current goals and work your way up to bigger ones.
Create SMART goals for yourself
Instead of setting unattainable goals, create SMART goals for yourself. What do I mean by SMART? S – specific, M – measurable, A – attainable, R – relevant, and T – time-bound. If you amended the goal of โraising your credit scoreโ to โimprove my 680 credit score by 25 points over the next 12 months,โ you would have a SMART goal that could be tracked and measured. The ability to monitor this goal significantly increases your chances of meeting it. Of course, each goal will look totally different depending on who you are, or what you need/want financially, but the credit score goal is a great example of an attainable goal that can be tracked over time.
Pay off high-interest debt
Most financial goals and recommendations are individual-specific. However, one recommendation across the board will ALWAYS be to pay off high interest debt. If you have any, that should be goal #1โฆeven if it takes you 2+ years to do so. Paying off high-interest debt will help free up so much time, money, and stress, which can help you achieve other financial goals, much more easily. Where to start? Consider trading your high-interest loans for low-interest loans, such as the ones that Chapes-JPL offer.
You can pawn a rolex for cash in Atlanta easily at Chapes-JPL, or you could sell your old jewelry, even if itโs broken. Three minutes in their offices is all you will need to discover how they have truly raised the bar and set new competitive standards for the legitimate collateral lending industry. They have been in business for over 40 years and have interest rates as low as 3%. Find out about Chapes-JPL for yourself and discover how simple, safe and satisfying your borrowing experience can be. 3% is significantly lower than most credit card rates, or other loan rates, so if you are able to get a loan from Chapes-JPL at such a low rate, take that opportunity to pay off other loans that you might have, with higher interest rates.
