Financial goals lay the foundation for you to achieve your dreams and aspirations. They define the crux of your lifestyle and should be at the top of your to-do list. Don’t know where to start? Take a look at these 9 Financial Goals and pen down your financial priorities for 2016:
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Debt Free Living
No one likes to owe money and getting out of debt is the first step to taking control of your finances. This might sound like an ordeal for many of you who are spendthrifts but becoming debt free is much better for you in the long run if you wish to lead a stress-free life. Debt is a parasite that eats into your savings but it can only do that as long as you allow it to. So hurry up and stop using credit cards or taking new loans and start paying off those outstanding loans right away.
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Retirement Plans
Most of you will scoff and say that retirement is still far off. Unfortunately, that approach won’t get you the luxurious dream retirement you want. So how is it possible to get that comfortable retirement? Simply by saving now and investing a sizeable chunk of your savings in your 401K plan and retirement account. It is advisable to put at least 10% of your income towards your retirement. Planning ahead is key to a stress free retirement.
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Piggy Banks for Rainy Days
An emergency fund is your secret weapon and in certain cases your only resource that will shield you from the unexpected. Ideally, it should be reserved only for unexpected or emergency situations in a liquid account to make it easily accessible. Emergency funds are beneficial in the long term as they allow you to withstand financial turmoil with some sort of security. You should ideally have an emergency fund as per your lifestyle and job profile. Those with a less stable job should be reserving a larger emergency fund.
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Your Insurance Stays when you Leave
Insurance is something that all smart people have for their investments and properties but acquiring a good ratio between the coverage and payments is an art in itself which can be mastered with the help of an Insurance Advisor. Health insurance is the most important as your health and life are the most valuable things after which comes Life Insurance. You can safely stick to any low premium auto insurance if you’re a safe driver.
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Frugal Budgeting
It is not how much you earn but rather how much you’re able to save, said a famous Wall Street investor. Living on less than you earn ensures that you will achieve financial success in your life. This also allows you to invest more into savings, investments and other expenses.
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Making your Dream a Reality with Financial Stability
Budgeting, becoming debt free and having savings will all inevitably lead you to towards your goal of attaining financial security. More importantly it will give you options where previously there were none, thus allowing you to live life on your own terms. You can travel to that exotic location you always wanted to visit, start your own business or buy that car you always wanted.
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Start Investing
Investing is the fastest way to increase your savings but it can only be done by taking calculated risks. The easiest way to do that is by consulting a good financial planner about your finances and investment options. Another way is to learn about other options like the stock market and allotting a certain amount to investment each month. If done properly you may never have to work a job again and can rely solely on your investments.
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Happiness is only Real when Shared
Happiness is only real when shared and the same applies to wealth. There are many examples of philanthropy the world over; the greatest examples being Warren Buffet and Bill Gates. Thus wealth should not control you but should be used to better the world. This will give you more joy than accumulated wealth ever will. Do your share of good with the amount you can share.
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Leaving behind a Well Planned Legacy
Your financial planning can either be a blessing or a curse for your family which is why good financial management is necessary. No monetary value can be added to how you influenced your family and friends around so to ensure that you leave the people you care about a better inheritance, you should be properly insured, debt free and your family should be aware of what financial actions to take, should you pass away.
Achieving these financial goals will help you live the life you only ever dreamt of!
Joel Ray is an experienced financial advisor and his areas of specialization include retirement planning and risk management. When Joel is not working with clients, he is busy creating informative blogs and whitepapers. You can also check out his fiscal blogs on Lifecentra. Follow Joel on Twitter @life_centra
Good reminder to start investing! And I love that you included the “Happiness is only real when shared section.” I always make a commitment to donate at Christmas and at least a few times during the year to campaigns like GoFundMe’s. Super important!