1. Make preparations
Setting a goal requires a foundation, otherwise it may fall apart or be unattainable. Certainty is important in finances, so you should start with a strict accounting of expenses and income. This will help you understand how much and for what purposes you spend, what “eats up” your budget the most, and what expenses can be avoided.
Once the preparatory work is done, you will be able to set the right and, most importantly, achievable goals. It may not start with saving up for a trip to Mexico, but with something small. For example, make sure that your expenses do not exceed your income.
2. Decide on an amount and a time limit
Any financial goal should be very clear. This applies both to the amount of money you wish to save and the time you are willing to spend to reach that goal.
Competently set financial goals usually seem boring. For example: I need 30,000 rubles to buy winter tires by November 1. To do this, I need to save 5,000 a month.
3. Be realistic
It is not harmful to dream, but dreams must also be achievable. If your income is 50 000 a month, and expenses – 40 000 , to accumulate a million in six months you are unlikely.
On the one hand, such a situation is demotivating. On the other hand, it can push you to reckless adventures such as going to the casino with borrowed money, playing stock exchanges or investing all of your savings in cryptocurrencies.
That’s why being realistic is important. After analyzing your expenses, you will be able to know the amount you can accumulate each month without such “extreme” activities. This should be the basis for planning.
In addition, financial goals should be your own personal goals. If you’re afraid to drive, why save up for a car, denying yourself trips you love? Or your parents want you to buy your own place, and you have to take out a loan to do so. You also want to go to study abroad.
Important: Financial goals should improve your life not only here and now, but also in the long term.
4. Set priorities
You can plan at the same time to buy an apartment, a car and a trip to Cyprus, trying to save for everything bit by bit. But you’re unlikely to succeed. Set your priorities. In this way, you will be able to understand whether you need the car or Cyprus. And then save for one thing in particular.
And there may be more short-term goals that are easy to achieve. But, as the experts recommend, no more than 4-5, otherwise the efficiency of solving problems will decrease and you will start to disperse your forces on trifles.
5. Mark the milestones
Be strategic: this will not only help you set the right goal, but also to achieve it quickly.
6. Program yourself to achieve the goal
There are techniques to help move your plans from formulated to programmed.
7. Be prepared to make adjustments
Force majeure happens – you need to take that as a given. And it’s important to be able to quickly change your plans based on current conditions.
You may have to cut back on spending or stretch out your deadlines. But even so, your goal will gradually come closer.
Important: After you achieve one goal, set another one immediately. Otherwise there will be no motivation to save and invest money, and the earned funds will be used up quickly.
Be guided by the principle: “If you have a dream, go for it. If you can’t walk, crawl. If you can’t crawl, lie down in the direction of the dream.” The main thing is to believe that everything will work out.