Money Goals to Hit

Money Goals to Hit

Everyone has dreams. As Lupita told us, all of them are Valid! There are some that will take a year and others that will take 25 years. Here are 7 money goals that are achievable in 10 years or less.

Have a Growing Net Worth

If you’re desperate to focus on one savings metric in order to assess your context, Alison Norris -a strategy manager – advises comparing your net worth to your expenses, rather than comparing your income to your savings.

“Otherwise, you’re really penalizing those who have worked hard to get a higher salary throughout the recent years, and that’s the opposite behavior that I would want to promote as a financial planner.” (Think about it: You can only pinch pennies so much! If you’ve worked hard and fought for a higher salary over the years, that victory deserves to be part of your financial narrative.)

Use whatever earnings you have, and aim to “increase your net worth by a few percentage points every year by investing wisely and making recurring deposits into your accounts,” she suggests. Analyze how much you’re contributing to investment vehicles, what you’re putting into a short-term savings account, and if that is growing over time.

Be Paid Your Value

 

No one is born knowing how to negotiate. But the more you practice and get in the habit of researching, the easier negotiating will be, and the better the chance you won’t be chasing bills down the line when you most need them.

“People get scared by the word ‘negotiation,’ but it’s just a conversational skill,” Norris assures. “Raise decisions often don’t happen in isolation, so approach your boss months before decisions are made. Bring examples of how your work has benefited the company, using language that expresses shared goals and your excitement to continue adding value.”

Be Able to Float Yourself For Atleast Three Months

A sweet goal is to have a greater degree of relief from everyday stressors. A financial cushion is essential as you move into middle age. (Especially for younger adults today, many of whom will never experience a pension.)

“Depending on how many income sources you have in your family, you generally want to be between three and six months of expenses,” Norris says. “If you just have one income source — you’re the sole provider — closer to six months is a better rule of thumb. And if you have a two-income household or you have a couple of different jobs, three months may be a better frame of reference.”

Be Dedicating atleast 20% of your income to short and long-term goals

Life shouldn’t only be about paying off debt, working to pay off debt, and concentrating on the twilight years of your life. So whatever your savings bucket looks like, try to siphon some of that off toward the short-term goals that make life worth living.

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“In general, you should strive to be saving about 15% for retirement and that additional 5% toward your shorter-term goals — paying down debt, planning for a home purchase, whatever really floats your boat,” Norris says. Many people are in the habit of spending on musts firsts (rent, bills, etc.), miscellaneous wants second, and saving last; she urges you to flip the last two categories as you get older: Tackle any needs first, “pay yourself” next, and then “spend the rest guilt-free.” If 20% feels impossible, “start off with whatever number feels feasible today” and work your way up the percentage ladder.

“The worst thing that you can do is just stick your head in the sand and decide that because you won’t be able to have as much as you’d like, you’re not going to do anything at all,” Norris says.

Have a network of trusted financial sources

You shouldn’t feel any shame in building up a stable of resources to keep your finances in check. (It’s not like one-percenters manage their money alone!) Maybe your network includes a money-savvy friend, an advisor, or a CPA you can speak with about your finances, Norris says. The point is to get good, objective advice that steers you in the right direction.

 

 

Adopted from Business Insider

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