We all have reasons for wanting to achieve financial independence. It can be as simple as wanting a new phone or going away on a weekender with friends without worrying about money. It can also be for a more ideal reason, such as paying off long-term goals, a car, student loans or a first home. Knowing your goal is great, but the hard part is knowing what to do after you’ve come up with these reasons. So, how do we stay vigilant to achieve the success we all dream about? Here are a few ideas that can be helpful in accomplishing the financial security we all aim for.
Determine Your Financial Goals
Do your goals add value? We may all want to own a yacht to cruise the Caribbean or a beach house in Hawaii, but that shouldn’t be on the top of our list. You need to know why you’re saving so you can make the most of the money you’re putting away. The next step is to determine which will be short-term and which will be long-term financial goals.
Each may be important to achieve, but some will be quicker to reach than others. If you go through a few rough drafts that’s even better. The purpose is to think of what you do need so you can have the financial power over every aspect of your life. Designating each goal allows you to have a starting point for creating a budget plan to help you reach them.
Prioritize Your Needs Over Your Wants
When trying to achieve many goals, it’s a good idea to focus on a few at a time; not all at once. Often times when we start new things, we get excited about the possibilities. Sooner or later, we may get overwhelmed by all the steps required to achieve what we’ve started. (See also: 12 Frugal Living Tips to Help You Save Money)
Prioritizing does not mean that you should not save towards more than one goal at a time. It only means it will be less overwhelming towards accomplishing your goals. Design your budget plan so that you’re accomplishing your most valuable needs quicker. Such a small act can make a world of difference in your progress. You will be able to tackle it a small piece at a time which will allow you to see the bigger picture and ensure success. At the same time, the savings for your long-term goals are steadily increasing.
Plan for the Unexpected
Accidents happen every day. As the old adage says “failing to prepare is preparing to fail.” Part of prioritizing needs to be putting money aside for the unexpected. Medical and family emergencies do come out of nowhere. Before you can blink your computer could stop working, your car could have issues or worse your a.c. could go out during the hottest month of the year. How do you financially handle all these disruptions? Planning ahead.
One of the best parts about financial security is being able to handle a financial emergency without a headache or stress. Financial independence is a different level of peace that we all really want in our lives. Financial independence brings the ease at which we are able to help family and friends who are in need. People would love to help others without a second thought. Unfortunately, it’s much harder to do when the funds are not available. Prioritizing and planning ahead allows you to help yourself and be there for anyone who is in need. (See also: Why Not Having a Budget Plan Can Hurt You)
Make the Commitment
More often than not, when we do choose to start new goals, something seems to comes up that takes our eyes off the prize. Two things will always try to keep you from reaching true financial independence. There will either be an excuse or something will come up. When emergencies do happen we have to tend to them right away and our plans for saving are immediately put on hold.
Of course, these emergencies do need the attention we are giving them. In this case, when it comes to our goals of financial security it’s best to remain committed and not derailed. You must take the initiative to reach your financial goals or it may be impossible to see them come to fruition. That is why you must come to an agreement with yourself that saving money must be a priority. You owe it to yourself to adopt this mentality of readjusting your behavior to improve your life. You’re the only one who can give yourself financial independence.
Make Informed Purchases
It’s important to realize that it doesn’t hurt to double check our plans to make sure we made the best decisions. When it comes to purchases great or small you should make the same due diligence. It may seem time-consuming, but saving money is worth the time. This process allows you to pick the best option based on the information you’ve gathered.
There are various stores that all offer the same items at different price points. It would be to your benefit to shopping around to save whenever you can. It’s always a great feeling to know you have saved your money while getting exactly what you need. It is not tedious or time-consuming if you plan ahead when it comes to any purchases. Search online or your local paper in advance for sales of the week or weekend. If you need an electronic item or a new dress shirt, a web search could save you 20% or more on your items. Take the time to become better informed as you create the financial future you’ve always wanted.
Creating the Future You Want Will Take Time
Success is a journey. Every step you take is a building block to something greater than yourself. Creating the future that you want will take time. On that road to success, you will have a few days where your accounts are in the negative. You might not have any room to move funds around to include even a small popcorn. It will be tough, but it will also be worth it. Achieving financial power and independence is not something that will happen overnight. After a few months of budgeting, you will notice the difference. You’re securing financial independence with each addition of goals or subtraction of debt.
Build the Best Budget Plan for You
When you decide to start your journey to financial independence there will be some rough patches that you will have to go through. You will need to decide from the beginning that this is something that is a priority for you and your future. Financial security is about being able to meet your financial goals without added stress. It is also about setting yourself up for success without having to take on greater amounts of debt or becoming overwhelmed at the cost of what you are trying to achieve in your life. (See also: 4 Essential Things to Include in Your Monthly Budget Plan)
You need the best budget plan possible to build the perfect path for you going forward. That’s where BudgetPolitan comes in. At BudgetPolitan, you can start using our dynamic, easy-to-follow budget plans right now to reach true financial freedom. You’ll be able to monitor your finances, set-up and update all types of expenses and credit cards and learn about any pitfalls in your financial life before they surprise you. Sign-up for free today.