WalletFriend Wisdom Tip #5: Your Financial Goal

We are back again to bring you another tip to manage your wallet. We hope the previous financial tips have helped you so far but it doesn’t end there.

This tip focuses on setting financial goal. We believe everyone have some ideas in achieving their life goal. For example, buying a house, saving for the wedding day or even buying the dream car. These could be both dreams or goals and it all depends on a structure and careful planning to make these achievable goals.

So how does a financial goal look like?

To start off, you will need a purpose; What do you want to achieve? For example, to pay off your children’s tuition fee, buy a house, save for your wedding, or something on a smaller budget like buying a smartphone so you could get connected to your family back home via video call?

Secondly, think about what resources will need to make it happen? How much will it cost you? Can you do it by yourself or will you need help in order to make your goals achievable?

Thirdly, think about the time and set a deadline for yourself. By when will you be able to achieve your financial goal? Each goal should be separated with a different timeframe as some goals are easier to achieve.

Therefore, we advice you to divide the set goals into 3 categories: short-term goals (achievable in less than 6 months), medium-term goals (achievable in 6 months to 1 year) and long-term goals (more than 1 year to achieve).

Finally, you will need to incorporate your financial goals into your budget. From our Wisdom Tips #3, with the budget, you will need to set up some form of system for yourself so you could allocate a percentage of your income every month for your financial goals.

With our previous tips, you should be able to have a better understanding of tracking your expenses and spending your hard earned money more consciously. We are confident that if you follow these steps strictly, you will certainly save more pennies and assist you in achieving your financial goals.

If you have no idea how to set a budget yet, no worries we got you covered! Let’s take a step back to our previous tip.

When setting your financial goals, it is important to be realistic with yourself and the situation you are in. Determine the goals that are urgent and what matters most to you so you could prioritise what to achieve first during your financial planning. If you face set-backs in your financial planning, don’t panic. You can set new deadlines or take extra measures in order to meet your targeted goals. Essentially, nothing is set in stone; review your progress every month and check on your progress towards achieving your financial goals. You should refine your plan if needed in cases of any set-backs in the achieving your financial goals. For instance, cutting down on the spending for finding more income streams. Most importantly, you must have achievable goals to work towards to, be motivated and monitor progress regularly and turn these goals into reality.

In our next tip, we will continue with an essential financial goal that applies to any kind of budget.