Set Goals to Improve Your Financial Wellness

09/13/2022 Written by: Jenny Boudreau

You may be familiar with the saying, “Knowledge is Power.” The financial world can be complex and confusing, but the more you know, the better equipped you’ll be as you chart a course to financial wellness.

As you prepare to learn more about finances, you may find that setting goals provide vision and direction – creating the catalyst for shaping your future. Here are some ideas to help you set lasting goals:

The Devil’s in the Details

More than simply your wants, your goals should include why you set a particular goal. For example, say you set a goal to eliminate your credit card debt. Why do you want to set this goal? What is the timeframe for reaching this goal? What happens after you reach the goal? When you dig into the details and put them on paper, you often become more motivated.

Start With Today

It may be tough to know where to begin or how to prioritize your goals. Start first by looking at next week, then next month, and then next year. Look at your income, expenses, taxes, and net worth. What small step can you take today to get started?

Prepare for Emergencies

Don’t let an unexpected expense derail your plans. Set aside enough money to cover 3-6 months of expenses.

Contribute to Retirement

Contribute a percentage of your income each year to a retirement account. If your employer offers a retirement saving program, such as a 401(k), take advantage of it if you can. If you don’t have access to a 401(k), a financial professional can help determine a savings vehicle that makes sense for your situation.

Eliminate Debt

When you pay off debt, you free up money for your other goals. Target the debts with the highest interest rates first, such as credit cards.

Reward Yourself

It takes discipline to set and work toward your financial goals. When you reach benchmarks or milestones, reward yourself as an incentive to keep moving forward. But keep it reasonable, so you don’t go off course.

Keep it Active

Review your goals frequently to ensure you remain on track. Make adjustments as needed.

As you set out to improve your financial wellness, don’t underestimate the importance of saving along the way. Saving helps keep you steady on life’s path through unexpected financial twists and turns. It also enables you to focus on your short-and long-term goals.

The financial professionals at AssuredPartners Investment Advisors can provide additional insight and direction. Contact us today for help developing a more disciplined approach to managing your finances.

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