7 Superb Financial Goals You Can Attain

In a similar vein to making New Year resolutions and other promises, but more formally, financial planning involves the determination of the future you wish to have with respect to money and the strategies to achieve this within a given timeline that is usually measured in one year and your retirement age.

For instance, when you have the following thoughts in your mind; ‘I want to buy a car before the year ends… I want to own a house within the next ten years at most; I want to save for my children’s school fees.’ They are financial goals that can be achieved only with the right approaches and choices.

Here are seven (7) superb financial goals you can attain within your lifetime.

1. Having an Emergency Fund

According to BankRate, 60% of adults in the US are uncomfortable with their level of emergency savings, while 89% agree that they would need to save at least three months of living expenses as emergency funds; but only 44% of the people sampled actually have a minimum of three months living expenses saved as emergency funds.

An emergency fund is, in essence, a method of saving moneyoften regarded as ‘rainy day cash.’

This is not the type of money that you should be spending on items like purchasing a car or going for a holiday; it is money that is saved for you to spend each time there is an emergency situation like your car breaking down while driving to work, a plumbing issue that needs urgent attention, fire outbreak, etc.

Financial experts worldwide agree that setting aside $3000 or saving at least three months of your living expenses as an emergency fund will be enough to cater for almost any type of emergency situation that may arise.

Read Also: How to Save For Different Financial Goals & Benefits of Planning Your Finances

2. Starting a Retirement Savings

You should be able to plan and prepare well for life after retirement by having a retirement savings account, like 401(k) or an IRA which you should not take for granted immediately you gain an employment.

It is a financial goal you should prioritize because it gives you financial security and also helps you to plan and save for how you are going to sustain yourself and maintain your preferred lifestyle without necessarily being dependent on the social security payout.

A 401(k) is an investment that simply gives you 100% returns on your investment if your employer’s contribution matches yours.

For example, if you’re saving 3% of your salary which amounts to $3,600 yearly, $300 monthly, as retirement savings, your employer matches your contribution with an equal amount or a little less, provided that you meet the conditions required.

That means you will get an additional $3,600, amounting to a 100% return on investment.

Aside from your regular 401(k), you can save up additional money in Individual Retirement Account to achieve faster financial growth and make retirement early and other plans for your retirement realistic within a shorter time frame.

For example, with both 401(k) and IRA, you can retire early and start a business of your own or take a vacation and travel around the world.

Read Also: 7 Signs that you’re Financially Smart

3. Investing In Insurance

Having an insurance policy may not get you excited, but it is one superb financial goal you can set for yourself because when you least expect it, the insurance coverage for your home, car, or health can prove to be another safety net.

In the case of significant damage to your home, auto accident, or illness, you can easily fall back on insurance to rescue you while keeping other financial goals on track.

With life insurance coverage, you’re sure that debts will be cleared, your spouse and children will be taken care of, funeral arrangements will be made, and moving on without you will be a little easier when you’re gone.

Read Also: Grow Your Money Faster: 9 Easy Investment Tips

4. Paying Off Debts

A sample survey carried out by Business Insider, presents a glimpse of reality where an average American owes more than $104,000 through mortgages, student loans, credit cards, and other loans.

Debts prevent you from getting interest savings from investments.

Hence, it is advisable to pay off high-interest debts before trying to invest your money into capital markets.

Thirdly, eradicating debts improves your credit rating, enabling you to get attractive low-interest mortgage loans.

You can pay off your debt by starting with smaller debts first(snowballing) or tackling the bigger debts head-on (Avalanche).

5. Buying a Home or Paying Off Mortgage

Home ownership provides the security you require to raise a family and accumulate assets. Statista indicates that 65.2% of the American populace owns a home with younger generations of renters aspiring to own their own home before reaching their retirement age.

Aside from setting a goal to own a home, you should also make it a priority to pay off your mortgage early enough after making a down payment for your home to cut down on accrued interests, which can run into thousands of dollars by making an extra payment to offset your mortgage faster.

Read Also: 9 Financial Habits of Women Who Are Never Broke

6. Investing In Capital Markets

Investing your money helps you to pay off mortgages and other debts faster, build wealth, and achieve other goals, which can include going on expensive vacations as a result of accumulated interests and dividends accruing from your investments.

According to Sifma, global income markets increased by 5.9%, amounting to $140.7 trillion in 2023. This goes to show that investment tools such as ETFs, Real estate, mutual funds, cryptocurrencies, stocks, and Bonds and many others are very profitable and effective in helping you save your money.

However, you should have proper understanding about the capital market before making any investment decision.

7. Achieving Financial Freedom

Many longed for financial independence, but few get to achieve true financial freedom.

The state of being able to make money through savings, investment, or other initiatives without having to work is financial freedom.

It gives you a chance to exercise, go outside, have fun and live your life just the way you want without worrying about the cost implication.

To be financially independent, you should aim to grow your cash reserves while not sacrificing your personal and familial wants, carefully selecting your investments, and developing more sources of income, for example, in property, by beginning a business as a freelancer, or a temporary job.

Conclusion

If you are dedicated to these superb financial goals and with good financial planning, you can have the happy, satisfying, and fulfilling life you always dreamed of, like world tours, dining in exotic restaurants, sending kids to Ivy League schools, going on cruises, etc.

Read Also: 10 Financial Habits That Will Make You Wealthy