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How to Set Realistic Financial Goals For Yourself in 2020

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How to Set Realistic Financial Goals For Yourself in 2020

Guide

Nick M.-

We all know that 2020 has definitely been an… interesting time for us all. Current events have forced countless people into financial predicaments, which has caused many of them to think a bit introspectively. Many have had their eyes opened to their own financial vulnerabilities and are taking the time to correct them. However, there is one thing you should do before you go out and try to start righting your wrongs. That one thing is figuring out how to set realistic financial goals! After all, becoming a millionaire in the next 5 years sounds great on paper, but it’s not very attainable for most people.

A family setting their financial goals

Develop a Budget

If you are looking to improve your finances, the very first thing you should do is create a budget. After all, you won’t know if you’re improving if you’re not keeping track of anything! Developing a budget isn’t very difficult, it’s just a bit time consuming. The first part of creating a budget is the easiest. Step one is figuring out how much money you make, that way you know how much money you’re dealing with each month.

Once you have that in mind, get an idea on how much your necessities cost. This includes, but is not limited to: rent/mortgage, utilities, cell phone, internet, food, subscriptions, etc. Don’t hold anything back, the deeper you dive, the better off you will be in the long run! Once you have that in mind, if your savings is looking a little lackluster, you may want to cut back. The beauty of it all is, once you have a budget, you can see where all your money is going. This will make finding where to cut back easy!

Figure Out What You Want From Life

You can’t really create goals, if you don’t know what you want in life. Although this step seems straightforward, it’s probably the most difficult part of the process. Everyday, we go to work and fulfill our obligations, and disconnect when we get home. Very few people squeeze in time for some introspective thought everyday. So take some time and think about what you want to do with your life, and your passions. This could be something as simple as retiring early, or as far out as travelling the world as a digital nomad! Once you have an idea of what you want, create goals that will act as milestones leading up to the finished product!

A sign proclaming helping setting your financial goals

Focus on Your Own Goals

In this day and age, it is easy to get caught up in everyone else’s life. Social media makes it easy to see everyone’s highlights, and how well they are doing. It’s important to remember not to get caught up in comparing yourself to others. Everyone has a different path they are following in life, and the one that you should be focusing on is your path. At the end of the day, that is the only one that matters, because that is the only one you can change by focusing your time and effort on!

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