2019's Guide to Achieving Your Financial Goals
For many of us, the New Year can bring in a fresh sense of purpose that compels us to set specific goals for ourselves. Just like every other goal in life, financial goals require a systematic plan and a certain level of discipline.
Financial goals often fall into two main categories: short term and long term. Generally, these two categories are equally important to overall financial health, though short term goals may require more immediate attention. For purposes of achieving goals for the year, it might be helpful to separate them into different “buckets”, making sure each bucket gets funded with a desired amount of cash by the end of the year. A general tip when attempting to fill all of these buckets, whether long or short term, is setting a budget and not letting your lifestyle increase at the same rate of your annual pay increases. Instead, divert a portion of that raise into your emergency fund, 401(k), or college savings account. In the same spirit, do not treat a bonus or financial windfall like spending money. Use it for enjoyment and your lifestyle, but save a significant portion to fill whichever bucket needs it the most.