Financial Goals to Results
When you’re in the early stages of your personal finance journey. The majority of your financial goals tend to revolve around specific numbers. Tie Your Financial Goals to Results
Once you start achieving those goals, you’re probably going to set a few new ones—and. You’re probably going to structure them the same way. “I need a three-month emergency fund” becomes “I want a six-figure net worth,” and so on.
There are two reasons why focusing on what you do with the money is more important than focusing on how much money you have.
First, because it’s always a smart idea to have a plan for your money. Sometimes there’s a specific plan: maybe you’re saving for retirement, for a down payment, or for a once-in-a-lifetime holiday. Other times, you’re saving and investing money now because you want more options in the future. (Tie Your Financial Goals to Results)
Second, because making your financial goal about a result and not about a number can often help you find ways to achieve that result while spending less money. Telling yourself you need to save up £75,000 before you can make a down payment on a house, for example, is a lot different than telling yourself that you want to find and purchase an affordable home.
Likewise, setting the goal of “visiting Paris” instead of the goal of “saving £500 so I can visit Paris,” might help you find ways of making the trip less expensive—and getting you in front of the Eiffel Tower even faster.
How do you structure your financial goals? Do you tend to tie them to numbers, or actions and experiences? If you switched your biggest financial goal around. Based it on a result instead of an amount of money. Even if that means thinking “I want to be debt-free” instead. Of I need to pay off £3K in credit card debt. Would you be able to find a less expensive way of getting there?
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