We are going to talk about your life goal list, but focusing on a financial aspect of it. Many people have a life goal list that does not include anything financial.
let's talk financial life goal list and we should consider when creating one.
We all set goals. It might be to lose weight or go back to college. You might even have a goal to eat healthier. What about financial goals? It’s just as important to have a financial life goal list as it is to have any other goals. Let’s take a closer look at some great goals to add to your financial life goal list.
9 Things To Add To Your Financial Life Goal List
Get Out of Debt
It is so, so important to get out of debt. Carrying debt not only eats up your income each month but it can also be stressful. There are a number of methods used for getting out of debt. You can choose to pay off the lowest debt first or pay off the highest interest account first. Research your options and choose one that works for you.
Save for Emergencies
You must have an emergency fund. An emergency fund is to be used for the unexpected, such as being laid off work. Financial experts recommend that you have at least enough money to pay for 3 to 6 months worth of expenses. If you lose your job, you want to make sure you have enough money to cover your expenses until you find a job. This should cover the things you can’t live without – shelter, food, electricity, water, etc.
Build a Retirement Fund
It is never too early or too late to save for retirement. Even if you can only set aside $25 a week, it’s better than nothing. If you have an employer who will match your 401k contributions, make sure to save at least what your employer will match. You should also make it a goal to have an IRA for additional investing.
Invest in a Variety of Things
Stocks aren’t the only thing you should invest in. Property, precious metals, collectibles, wines/spirits, peer-to-peer lending are just a few examples of investment options other than stocks.
Stick to a Budget
Everyone needs to put this on their financial life goal list. Learning to stick to a budget is Life 101. The sooner you learn to stick to a budget, the more money you’ll have for other things.
Create Passive Income
You want to have more than one source of income. A passive income can be a rental property, a novel you sell through Amazon, or even a video you post to YouTube. The idea is that you do the work or make an investment once and then continue to make money over and over again.
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Carry the Right Amount of Insurance
Some people either carry too much or too little insurance. Sit down and take a closer look at your plans. Do they make sense for you? For example, if you’re in good health, you can opt to carry a plan that focuses on lower copayments for emergencies and a higher deductible. If you have an older car that is paid off, you might also want to opt to carry only liability insurance.
Live within Your Means
One of the biggest financial mistakes people make is living above their means. You want to make sure you have more money coming in than going out. This means you won’t have to rely on credit cards to make ends meet. It also means that all your expenses are covered each month.
Have an Estate Plan
Last, but not least, make it a goal to have your finances in order for when you die. This means that your children will be taken care of should you die unexpectedly and that your last wishes are carried out the way you want. For example, if you want to have your estate split up amongst your children, you can request it. Don’t put this off. You want to know that things are taken care of should something happen.
Everyone should have a financial life goal list. Look over the list and choose the goals that you need to achieve. You can do this – no matter where you are in life.