Financial freedom is a long-term goal that requires years of consistent efforts. Many people lose motivation because it can take forever to feel some progress. Therefore, it is essential to find a measure to keep track of your progress and use it as fuel for motivation.
You can divide your ultimate target into small goals to enjoy success now and then. Completion of each goal will increase the hunger to achieve more within the limited time frame. However, the goals should remain reasonable since they will lose the purpose if it takes them forever to achieve.
Here are eight money goals to add to your checklist if your ultimate goal is financial freedom.
- Savings Goal
A savings account is your assurance against possible financial troubles in the future. You don’t have to rely on credit cards or loan to sail through tough times. Therefore, create a plan to increase your savings with some budget cuts.
An average adult should have an amount equal to their 3 months of pay in their savings account. You can use the 80/20 formula to save money, where 20% of your income is directed towards an emergency fund. Use the automated transactions to prevent the temptation to spend use the amount for the fund.
- Food Budget
Food is an essential expense in the budget with significant unnecessary spending. You can save money and maintain a healthy lifestyle by creating a diet plan. It will not take more than a few minutes to find the unnecessary costs in your food expense.
Cut your frequent visits to the restaurants to reduce the bill. You can easily make healthy lunch at home with the help of some YouTube videos. Stick to the list while visiting the grocery store and do not buy items based on impulse.
- Clean Energy
You are not the only one affected by the energy consumption at your home. The environment is running out of resources, and the pollution level is increasing every day. It is time to help the planet while trying to save money by opting for energy-efficient alternatives.
Based on your location, you can install a solar panel on the roof for free unlimited supply. The smart devices take care of the energy consumption with some inbuilt power saving features. You can take very bad credit loans to buy these products as an investment to save money and the environment.
- Transport Cost
Your strategy to save money on transportation will show progress from day one. And it is easy to figure out some methods to reduce the overall progress significantly. Therefore, it should remain your go-to option to save money on daily expenses.
You can start carpooling with your neighbours to commute even twice a week. Select electric vehicles instead of gas to save money on fuels. Or, you can use public transport and use the time while travelling for some productive tasks.
- Unnecessary Expenses
To control your budget, you must cut the unnecessary expenses from the list. It may take some time to settle down without the amenities in life. But it is worth the trouble for the ultimate goal of financial freedom.
Make a detailed list of expenses before creating the budget for the next month. Divide them into two columns, needs and wants. Be honest during the process as people often find unreasonable excuses to put some luxuries expense in the need list.
- Increased Income
Limited income is a significant reason for the unsuccessful attempt to complete a financial goal. You can gradually increase your income to manage the essential expenses and complete the saving goals. A side hustle is all you need to start earning more money apart from the regular job.
You can also increase your income by progressing in the job with the right strategy. Increase your skills required to complete the critical tasks at the office. Do not waste time on tedious work that can easily be designated or left to procrastination.
- Repay Debts
Financial freedom is a distant dream if you have a long list of outstanding debts in your credit profile. It is time to create an effective strategy to repay debts at a faster rate. It will help you save money on the interest and open some space in the budget for savings.
Prioritise the debt repayment while creating a budget. You can pay the small debts to get a sense of achievement and boost motivation. While paying high-interest loans is recommended to save money.
You can use a debt consolidation loan to pay the high-interest loans and simplify the repayment process. It will be easier to manage a single payment instead of a long list. Apply for loans for very bad credit from direct lenders to get instant approval and fund disbursement.
- Retirement Fund
No, you cannot save for retirement within a few months. It is a long-term process with years of consistent efforts to save money. However, you can start it now to reduce some stress from the future version of yourself.
There is no ideal age to start saving money for the retirement fund. You should start it as soon as the first paycheque is credited to your account. Remember, the house can have a mortgage, children can get an education loan, but no bank will offer a loan to older adults with no source of income.