If you’re like most people, reaching financial goals gives you the motivation to keep pushing forward. There are countless numbers of financial milestones that can be reached by just about anybody. Whether it’s finally becoming debt-free or buying your first house, these are things everyone strives for at one time or another. Unfortunately, there are bound to be obstacles along this journey that slow you down and sometimes completely derail you from your path.
Here are six things that should always be kept in mind, so they don’t happen to you:
1. Have A Plan
Having a plan to reach a financial goal is crucial. You must know what you will do to bridge the gap between where you are now and where you want to be. If you are in Singapore, the best way to do this is to have a well-thought-out endowment plan in Singapore, including all income and expense sources, even those that seem small or insignificant. In addition, this should also include any debt obligations you have outstanding, along with how much money it will take every month to cover the minimum payments required for each one of them.
2. Envision The End Result
It’s easy to get discouraged when you feel like things are moving too slowly or not at all. That is why it’s so important to keep yourself motivated by envisioning what reaching your goal feels like. If positive thoughts aren’t enough, try visualizing this milestone as well. Picture how great it will be once you have achieved financial freedom. Imagine how much better your life will be after paying that big credit card bill or knowing you don’t have any student loans hanging over your head anymore. The more effort and energy you put into thinking about these feelings now, the more likely you will keep going and reach your goals.
3. Don’t Overlook The Small Things
It’s very easy to get overwhelmed when reaching a goal that seems like it’s taking forever, but if you neglect the smaller things along the way, you could come up short or even leave money on the table. This can be as simple as allocating an extra $20 per week to your savings account, putting 10% of any raise you get at work toward paying off debt or giving up one night each week of going out for dinner. These small things can add up and have a major impact on where you stand financially.
4. Don’t Lose Focus
Unfortunately, life is full of unexpected events; anything from getting laid off work to an unexpected accident can end up putting a major dent in your plans. Personal finance bloggers typically use all kinds of analogies when writing about their own financial life. The problem with this is that you become too emotionally invested in whatever it is. In other words, when something unexpected happens to a blogger, they’re going to complain and rant about the situation because it’s happening to them right at that moment. When your plans fall through due to a complex set of circumstances that requires a change, of course, the hardest thing you can do is double back and re-calculate what plan B looks like.
5. Change Bad Habits
As previously mentioned, unexpected things happen all of the time, and they can impact your financial goals greatly. However, one thing that can be controlled is yourself and how you react to situations when they do occur. This doesn’t mean you should shrug off setbacks and stuff your feelings, but it also doesn’t mean that trying to bulldoze through just because you’ve been doing so up until that point in time either. However, if you continue to pour money into the same bad habit because nothing changed, then it’ll be more than just hard to get back on track; it will likely lead you down a completely different path than the one you were originally on.
6. Don’t Compare Yourself to Others
It can be very easy to pick up other blogs and try to figure out what other people who are in a similar financial situation as yourself are doing to achieve their goals or milestones. The problem is that this doesn’t give any insight into where they were before starting. This could lead you astray from your situation without realizing it—along those same lines, comparing yourself with those who have been at it for years longer than you may also not be the best idea. They had to start at some point, and doing so is not easy.
A thorough plan must be made in advance to reach your financial goals, and having a solid foundation is critical so you can avoid any major setbacks. Establishing milestones within certain periods will help keep things organized and give you an idea of when enough is enough with regards to how much money you have available for something or when you might need to turn plan B into the new A. It’s never too late to start achieving your milestones, and great things can happen if everything goes as planned.