You’re in your twenties and life is cruising along. You don’t know if you want to get married and you certainly can’t imagine being a parent. You’ve been bitten by the travel bug and embark on unplanned adventures. You live with friends and the rent is manageable. The only thing that keeps you up at night is your education loan. Yet you feel financially liberated – you spend when you want to and save when you must. Why would you ever need financial goals?
Setting Financial Goals
If you don’t know how to identify your financial goals. You can read about it here, watch a video here, or download our easy-to-use template to get started. You can also pick financial goals from this list!
10 Financial Goals for 2020
If you’re still not able to set a financial goal, gift yourself a head start on saving. You may not recognise its value now, but you will thank yourself later. More than 80% of respondents to our poll wished they had started saving earlier. Besides, nobody ever complained about having too much money.
Advantages of Having Financial Goals
Quantify Your Ambition
It’s not enough to know what you want. You must know what you’re willing to sacrifice, how much your dreams cost you, and when you want to fulfil them. This makes it easier to prioritise goals, measure progress, and celebrate achievements. Without direction – the journey to your goal becomes long and winding.
Save yourself the time and effort by starting a goal-based investment today!
Better Career Choices
Most Millennials dream of retiring early. Surprisingly, it’s not the work they’re avoiding. It’s the career that bothers them. The repeated motions at a job you dislike will grind at you. The idea that retirement is better than work can become toxic for your mental wellbeing.
By setting financial goals you know how much you need to retire comfortably. This means you know how long you have to stay at your current career and what you can achieve by cutting back on your lifestyle.
With a little bit of planning and a lot of investing you could be pursuing the career of your dreams!
Types of Financial Goals
Short Term Financial Goals
To achieve your goals, you must employ different investment strategies. Short-term goals are those that may happen within the next five years. You will rely on assets that offer capital protection and predictable returns for short-term goals.
For goals that may occur in a few months or within a year, you could even set up a sinking fund. The best thing for wealth creation is getting into the habit of saving to spend!
Long Term Financial Goals
Long-term goals are those that are at least five years away. You have a long investment runway, so you don’t have to do all the heavy lifting. You can let your investments do the hard work through compounding.
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Pretty soon you’ll be in the next decade of your life. Things will look a lot different than you imagined. The good news is that you’ll be prepared for every milestone because you took out the time to write down your financial goals today!