- Posted 06 Aug
- 0 Comments
To obtain and enjoy financial freedom in your life, establishing some achievable financial goals is very important. Figuring out what your goals are and planning how to achieve those goals is a crucial part of the process.
To set sensible financial goals you need to be self-aware. Get a realistic idea of your financial position and what you require to make that situation better or more in line with how you want it to be in the future. Do some research, talk to people who can help you with this and get on with the process.
However, because you are constantly on the move and your life is always changing, you are not likely to be in the situation you were a year ago.
Some of the financial goals you’ve set for yourself have already been achieved while some don’t apply anymore. This is why it’s essential to review your financial goals on a regular basis.
Listed below are some important points to be aware of, which should motivate you to review and re-plan your financial goals more often:
Upon being forced to change jobs, it’s possible your salary will change significantly. In that case, your financial goals will need urgent reviewing.
With a lower salary you cannot hope to meet all the goals you had set for yourself and it will be better to manage expectations by reviewing your goals to match your current position.
Alternatively, a rise in income should be followed by a financial review as well. This is because your higher income will make you capable of affording things you couldn’t expect to afford before. To spend wisely and appropriately, reviewing your goals based on changes in your income is essential.
Sudden and/or large expenses can cut into the budget considerably. Unplanned expenses, if not taken into account and dealt with, can lead to inadequate savings or unpaid bills.
To prepare you for such situations, any and all wayward expenses need to be accounted for. It might be wise to set aside finances in an emergency fund or contingency fund as part of your financial plan.
Major changes in living conditions lead to unplanned expenditures because it’s nearly impossible to plan ahead for everything. If you have a job that requires you to move from place to place and you have a family, you will need to be wise about a financial review, accounting for extra family expenses often. Even without a family, doing so is a pragmatic way to plan ahead.
Financial planning should include family planning. Getting married and having children will increase your expenses exponentially. Planning ahead for school, education loans, home loans and investing in superannuation funds will only benefit you in the long run. You will need to review your financial goals every step of the way when it comes to providing for your family.
Life changes every day and the situations you’re put in do not remain the same throughout your life. Reviewing your financial goals regularly will simply make sure that you enjoy maximum financial safety and independence no matter what the circumstances are, and that you’re prepared for every financial situation possible.
Chat with us today for advice on how to set appropriate and achievable financial goals to benefit you in your future.