Turn Your Financial Goals into Reality
With the turn of the year you hear the familiar sayings of New Year New Me I will achieve all my Financial Goals! Here at One Pound Something we believe in positive affirmation, but with words action must follow!
Knowing exactly where to start can be hard. Some goals seem so big we allow ourselves to become overwhelmed by the process and distracted with immaterial detail. To stay focused and consistent, it is important to break down large financial goals into smaller specific tasks, or “mini goals” with a monthly or quarterly deadline (very important!). The achievement of each mini goal marks progress to your end financial goal and can serve as motivation to stay on track.
Let’s break down some common financial goals many of us may have on our agenda for 2018 into actionable & specific mini goals:
Financial Goal 1: I want to buy my first property
♦ Gain a greater understanding of mortgages (Fixed rate, variable, mortgage duration)
♦ Understand your house budget – speak with a broker to gauge your price bands as this will enable you to refine your searches on criteria such as:
- Type of purchase (sole/shared ownership)
- Type of property (house, new build flat, ex council flat)
- Method of financing (right to buy, help to buy etc.)
♦ Set up alerts with Zoopla, Rightmove & Mouseprice at a frequency of your choice with the criteria outlined above.
♦ Set up the appropriate bank accounts (ISAs) and accelerate your saving –£X by Q1 and so on
Financial Goal 2: I want to stop spending and start saving more
♦ Define what exactly you are saving for
- When do you need this?
- By month X how much £X
♦ Download the appropriate tools / apps that can give you an insight into your spending patterns or can control the way you spend
♦ Dateaholic or Social butterfly? Give yourself a date quota or look for more free events!
Financial Goal 3: I want to make my money work for me / gain an extra revenue stream
♦ Define exactly what this statement means to you
- New/extra job?
- Side hustle?
♦ By when do you want to start this and by when do you want to start seeing your return?
♦ Seek advice and guidance from the appropriate people / resources
♦ If appropriate set yourself monetary or units sold targets
Financial Goal 4: I want to clear off my debt / improve credit rating
♦ Understand where you stand today i.e.:
- Debt in your name
- Current credit score
- How much interest you are paying on any outstanding debt
♦ Switch high interest charging cards to low / 0% deals
♦ Give yourself a realistic timeframe of when you can pay off your debt by i.e.
- Are you able you make overpayments?
- Could there be any change in circumstances that can affect your repayments?
Over the next few months we will be going a little bit deeper into the aforementioned goals which should help you gain more clarity and insight on how to make sure you reach them.
The prospect of reaching your goals is incredibly exciting. The journey may be painful but with it comes experience that will make your achievements even more powerful. Ensure you write down your goals and post it somewhere you can see each day as a constant reminder of what you are striving for.