Everybody’s got financial goals that are directly connected to their dreams. Maybe you want to retire by the age of 50 or you want to start traveling the world, or you want to set up your company – all of these dreams require some money from your side. A lot of this is wishful thinking.
I think the saddest part is that because a lot of people don’t think about how real their dreams are, it passes them by. In the meantime, they watch stories like ‘The Secret Life of Walter Mitty’ or ‘The Pursuit of Happiness’.
Stop and think hard about your dreams. No matter what financial and debt situation you are in, your dreams can come true as long as you are willing to think realistically about them.
List Down your Goals
The first step is to actually list down your goals on a piece of paper. Don’t just keep them in your head and dream about them. Think hard, take your time and list down the financial goals that really matter to you, not the ones you keep dreaming about on the big screen.
Be Real About your Finances
You need to assess where your finances stand. Many of us fail to even realize that we are in debt or financial difficulty. We fail to keep track of debt, how little we have saved up and where our financial future is headed. I blame this a lot on the fact that we believe in instant gratification. That’s what the credit card does, whip it out and spend money you don’t have.
– Track your Expenses
– Go through your credit report
– Become aware of your debt
– Your credit score is a rating on your financial situation. Anything below 500 is bad, while above 700 is great.
Be Prepared to Make Tough Choices
You can only achieve your financial goals if you are willing to reach out and grasp it and that means making tough choices.
– Change your Spending Habits
You need to change your spending habits so you can save more. When you track your expenses, it would reveal vital data. Do you have too many outings? Are you spending a lot on lunch when you can save up by making a sandwich yourself? Identify points where you are spending excessive money and cut down on them.
– Fulfill your monthly obligations towards debt payments
The best way to keep your debt in line is by paying them as they are due. This is very important for any financial goals you have. You can’t have debt hanging around and draining your funds. Make the monthly payments now and you’ll be better off in the future.
– Watch Your Credit Score
Review your credit report and score at least once a year. It will inform you of where your financial and debt situation stands. It will also tell you how closer you are to being financially able to achieve your goals.
Align Your Financial Goals with Your Financial Situation
I’m not saying that you will be able to achieve your dream within the next month, but you can work towards it slowly. Minimize your debt, get your credit score up, improve your savings and you are closer to achieving your goals than before. It is best if you come up with a plan on how you are going to collect enough money to buy that house or go on a world tour.
Sit tight, give it time, keep up the hard work, maintain a low debt ratio and watch your dream come true.
