While many of us have managed to survive and scrape by with the repercussions of the pandemic still echoing worldwide, we also need to acknowledge the call to action for increased awareness of personal finance and financial literacy. However, a vast majority of people are not treating the financial and economic aspect as urgently or seriously among the harmful effects of Covid-19.
This is a contributed post and do not necessarily reflect the opinions of Meet The Harris Family.
As a result, many people have set aside the need for financial goals, being content with just getting past another day, and without understanding the risks, this mindset carries. So, today we’d like to go over the urgency of setting financial goals right now and how exactly this mindset can help set you up in the future and for the long term.
Taking Full Control Of Your Life
The cornerstone of creating and religiously working toward your financial goals is because it provides you the capacity to take full control of your life. Most people would only regard money as nothing more than just a means to possess material wealth, but in reality, money is a financial tool. It is a tool that will enable all other aspects of your life, and the lack of it will prevent you from realizing any of them into reality.
- Not Burdened By Debt: Debt is always of great concern, and if it can urge the UN to call for urgent action of a potential debt crisis, it’s equally as important to understand the burden behind personal monetary obligations. Without debt, your money is only tied down by your budget and monthly expenses, the excess of which you have the freedom to use for your happiness and to help those around.
- To Reach Self-actualization: After reaching and attaining your financial goals, you now stand at the top level of Maslow’s Hierarchy of Needs; to reach self-actualization. Instead of being held back and constantly reminded of your every need, your life’s focus can shift toward your full development as a person and the growing appreciation for experiences. Financial goals enable you to live life to the fullest and to any extent you like.
Here’s Where You Can Start
Likewise, we strongly recommend setting your financial goals at a much younger age because this will give more room for errors, mistakes, and time to learn from them. But that isn’t to say you can’t start much later than your early 20s because it’s better to start late than never. So, feel free to pick and choose between these financial goals and which ones are the most attainable and realistic to your position.
#1 Build Your Credit Score
Despite the growing awareness of financial instruments, people still often get the misconception that credit cards are the devil’s advocate and avoid them like the plague. In reality, credit cards offer you a lot of flexibility as long as you can exercise the responsibility to use them and not over encumber yourself with fees. We strongly recommend getting one as soon as possible to begin building your credit score and help you with future investments like a home or car.
#2 Down Payment For Your Home
Home ownership is commonplace as a financial goal, and there’s nothing more motivational than working hard for that house and lot for sale that you’ve always wanted. You want to start early and give yourself ample time to earn enough for the down payment for your home as you continue to grow in your career. Plus, the payoff of having a roof over your head and the opportunity to have a family is always welcome.
#3 A Solid Retirement Plan
While credit scores and savings are necessary, we also can’t overlook the importance of having a solid retirement plan. Remember, you’re only human, and you can’t keep working well past the age of 65 years old when you know it’s time for you to settle down and just enjoy the golden years of your life. Whether it’s your employer’s pension plan or signing up for a 401k, these financial instruments will guarantee that you can live in peace and tranquility when you grow old.
Life Is Spontaneous
Yes, there’s nothing wrong with holding off your plans for a much later date or maybe waiting a couple more years before you start getting serious about your financial goals. However, we should also understand that life doesn’t wait for us and is very spontaneous, meaning we can’t predict when good times will come or when we have to endure times of economic instability. Sure, your resiliency will take you to a lot of places, but resiliency has a limit and can’t replace a solid plan and determination to reach financial goals.
Use The Present To Choose Your Future
No one has the ability to predict their future, but what everyone has the capacity for is to use the present to put them on a path of the future they want to attain. So don’t waste any opportunity you get today and start setting your financial goals as early as possible.
