We’re almost at the “new year, new me!” time, so let’s talk about some ways to set (successful!) financial goals for the new year!
Today, we’re looking at three smart financial goals you can set for the new year. Check them out below to see how you can get a hold of your money management skills in the next twelve months:
Make your first investment
Investments are really smart financial decisions that can help you make a lot of money, basically for free. You can think of them as sources of passive income; you invest your money, sit back, watch it grow, then sell when the time is right.
There are so many types of investments out there, so do some research and get assistance from a genuine financial advisor before making your decision. The earlier in your life you make investments, the more beneficial they will be in the long run. Lots of people invest in things during their twenties and don’t sell them until they retire, bagging a lot of interest along the way.
Set a monthly saving goal
Saving money should always be a financial goal that you set yourself at the start of every year. If you’ve never been able to stick to a savings plan, this is the year to change that. Set yourself a monthly saving goal – this will be the amount of money you save every single month.
How should you set this goal? Well, it should be based on a specific savings goal. Do you want to save up to get a house in the next few years? If so, before you can start looking at mortgage quotes, you need money for a downpayment. Your monthly savings goal can help you achieve the amount needed for this. Or, you might have a specific figure in mind for how much you want to have saved by this time next year. In which case, you split that figure into 12 months, giving you a monthly saving goal.
Improve your credit score
Never underestimate the importance of a credit score. It’s a figure that will basically rule your life as you get older, determining how easy it is for you to do big things. For example, if you want to leave home and rent a flat, you need a good credit score. Going back to the example of buying a house, you can’t get a mortgage without a good credit score. It’s a way for people to see how financially responsible you are. Bad credit scores show you’re careless with your money as you might miss bill payments, get lots of loans, and so on. Good ones demonstrate an ability to manage your money, which people see as beneficial if they’re going to rent a property to you or give you a mortgage loan.
Thankfully, there are lots of little things you can do to improve your credit score. Take your current score and set yourself a target of improving it up a level or two. This could be from poor to good or good to excellent. Either way, things like paying bills on time and using a credit card responsibly can help you boost your score.
If you set these goals for yourself next year, you’ll be in a position where you’re saving a lot of money, you’ve got some investments, and you are being financially responsible. It can help you right any financial wrongs that happened this year, possibly even helping you get out of any debt you’re in.