Fifteen (15) more days before the year ends and indeed like many of you, I’ve also started creating my Year-end reviews. One of the many aspects that we all must check and reflect on every year-end or in the beginning is our finances.
So I thought of sharing 7 Financial Goals that I would like to do/achieve (or already doing) for 2020.
1. Stick to a Monthly Spending Plan
Many of us might be that kind of person who actually have a spreadsheet crossing out (or highlighting) our expenses and at times, you’d probably notice yourself that you’re deviating to your actually budget. So this 2020, commit to sticking on your exact monthly spending plan. Make sure that you actually followed what you’ve written and use them properly so that you won’t go over board.
2. Write Down Every Penny You Spend (On the first month)
This one isn’t really the every month thing, I recommend doing this only on the first month that you would like to track down your expenses. I know of a friend who actually does this and although I appreciate her time and effort in doing so, I also thought that it is sometimes exhausting to actually track every single purchase and receipts, that even the minute stuffs take time.
So, just take it on the first month and use that as the benchmark of your expenses.
3. Pay Off Debt & Don’t Add More Debt
I’m really into savings that I hope and pray of not having a debt. Paying your debt and close all pending payable will give you a clearer figure of how much you actually have and your spending capacity. So for 2020 I encourage you to pay off your debts.Clear them out and enjoy your hard earned money all to your regular expenses.
Don’t add more debt by borrowing that cash from other person to pay your earlier debt. Stay out of that cycle. Save yourself by simply saving and controlling yourself in buying what’s needed rather than wants.
4. Save Up an Emergency Fund
I’ve attended a seminar that opened my eyes about this. Saving for an emergency fund is indeed one of the best decision I’ve made. As you might have known, I was jobless for 2 years and 5 months and along those years of course I kept living which means I kept spending money too. Sadly my last employer didn’t pay my gratuity because I signed an earlier contract to get my gratuity from my net salary. Ending me hopeless. Anyhow, my point here is that, because I’ve saved up and my mother does too! So over the 4+ years I worked on that company I ended up using my savings and indeed it got us through the rainy days.
According to a financial expert, we must all save up at least 3 months of our salary and keep it handy at all times. Well as for me, I can vouch for that!
At the moment, since I recently just started a new job, that one is my goal.
5. Start Saving for Retirement/Insurance
This is another YES for me! To be honest I have 2 insurances… Kokobear and I have also been setting aside a few bucks for retirement. Although that is still far away, it’s good to start early. We enjoy so much of our present that at times we also set-aside our future. Looking ahead, this is one thing we must put on our to do list and start planning/saving.
6. Better Your Career
Greener pasture, this is a term we use whenever we move to a new work. But this greener pasture can still be found to wherever you are at the moment. To better our career means to find ways to actually learn something new. Acquire a new skills that will then become your new asset to which would help you for promotion or into moving to a bigger and better company. Don’t change company just because you want to have a higher pay, but also put in the effort to better your self and better your career.
7. Set up a Financial Plan / Revise your monthly expenses plan.
Setting up a financial plan such as revamping your monthly expenses set-up can help you target your bigger financial goals. I’ve learned from a fellow creative – Arriane Serafico of The Purposeful Creative that in budgeting, there are 3 Es that we must all use to breakdown our current and future goals.
The table below is a sample.
E1 – Essentials , these are the current and present expenses that you need to pay out.
E2 – End Game, these are for your future plans. Your retirement savings, your insurance, your short-term goal such as buying a new laptop, travel etc.
E3 – Extras, this is where your “wants” fall. It could be for shopping, books? self-care stuffs etc.
Which among these steps resonates to you the most?
Share your own tips and goal for the coming year!