to achieve financial success!
We hope our January Newsletter inspired you to set your financial goals for 2024 and beyond. Financial goal setting is key to get you started as it provides you with a plan to work towards financial success. In order to achieve financial success, following through is a vital practice, and the first step is to take action to align your budget to your goals, tracking your spending, staying disciplined, and automating your money actions.
Here are some steps to help you follow through this February by aligning your goals to your budget effectively:
Assess your current financial situation – Take a close look at your income, expenses, and overall financial situation. Understand your cash flow, financial obligations, debt repayments and any existing saving or investment commitments. This assessment will give you a realistic view of your financial situation.
Create a budget – Build a budget that reflects your income, expenses, and financial goals. Start by categorising your expenses into fixed (rent/home loan, utilities) and variable (groceries, entertainment) categories. Allocate a portion of your income towards each goal, ensuring that it aligns with your priorities.
Reduce unnecessary expenses – Identify areas where you can reduce or eliminate unnecessary expenses. This could involve cutting back on dining out, entertainment, subscriptions, or shopping habits. Redirect a portion of these savings towards your financial goals.
Automate Savings and Investment – Automating your savings and investments is a powerful way to align your budget with your goals. Set up automatic transfers from your checking account to your savings or investment accounts. This ensures that you consistently contribute towards your goals without relying on willpower alone.
Monitor and Adjust – Regularly review your budget and track your progress towards your goals. Adjust as needed to stay on track. Life circumstances and financial priorities may change, so be flexible and adapt accordingly.
*Anonymous (Client gave consent to share her story but requested to be anonymous)
“I was in debt with loan sharks due to not budgeting. I was always broke and my salary would end up paying loan sharks and other debts created aside. This situation impacted my mental health, as I kept on losing focus. I reached out to my financial coach. She assisted me with a budget plan that I had to work on to pay my debt commitments and slowly make changes. By following the plan, I am now out of the debt cycle, and by March I will be renovating my mother’s house with the money I saved from the plan I was given by my financial coach.”
Remember, aligning your financial goals to your budget requires discipline and commitment. Stay focused to your goals, make conscious financial decisions, and regularly evaluate your progress. With time, you will find yourself moving closer to achieving your financial aspirations.
If you need any assistance, our team of experienced financial coaches are here you every step of the way.