It's a new year and with every new year comes a new set of goals. Financial goals are always up there towards the top of everyone's list.
You know they're sitting right next to weight loss and fitness goals, but if you're like me you're probably struggling to come up with even one goal that matters to you. So, I thought I'd give you a little bit of help and share with you some financial goals that you might want to add to your list.
To start, we have to begin with the most important, yet also the most boring goal, and that is creating a budget. But not just creating the budget, that's step one, sticking to a budget is the important part. If you don't have some sort of understanding where your money is going versus where you want it to go, it will be pretty difficult to reach even your most symbol of financial goals. So, make this a year that you create a budget that you will actually stick to.
Next pay off high interest debt. Interest rates are rising right now and this means that it's going to be more and more expensive to hold on to that credit card debt. Focusing your efforts on paying down that credit card with the 20 plus percent interest rate will be one of the best things that you can do for yourself and your finances.
Now one goal that I think we should all have on our list is to finally build up that emergency fund. If there is one thing that we can count on in this life, it's an unexpected expense. Whether it's a medical bill, a leaky roof or a broken refrigerator, somebody somewhere is going to come asking you for money at the most inconvenient moment in your life. Having an emergency fund, even if it's just a few hundred dollars to start with, is the best way to remove some of that stress from your life.
Now the last goal that I have for you is invest and of course I want you to invest for retirement. But I think it's just as important right now to invest in yourself. Whether it's going back to school both traditional college courses or a trade school to learn a new craft. Professional development to help you get that raise, a promotion that you've been looking for or just learning a new skill like writing or embroidery or stop-motion animation.
Finding something that helps you relax and takes some time for yourself is so important. So, whatever you choose make this the year that you invest in yourself.