Financial Goals to Achieve & Mistakes to Avoid Keeping Debts at Bay



Over 50 percent of the millennials wish to become millionaires in their lifetime and most expect retirement around age 56. However, to fulfill these ambitious financial goals, it is of pivotal importance to reach some important financial milestones at first. You need to have clear-cut financial goals. If you set goals regarding things you wish to attain with your money, it could help you to successfully chalk out an actionable financial plan to implement and a solid reason to remain inspired and motivated. But how do you decide which financial goals or aspirations are worth achieving in your lifetime?



Let us explore some important financial goals to achieve by age 30 for enjoying a peaceful and less stressful life. You must set certain serious financial goals that should guarantee financial stability and stay away from undesirable debts. If you achieve these crucial financial goals, you could make long-lasting changes and have a grip over your expenses and all other aspects of your financial life. You must realize the importance of having a proper plan for sticking to your resolution. Here are some of the lofty financial goals. You must identify the financial aspirations that you need to fulfill.

Focus on Living within Your Means[/b]

You must not go beyond your means in terms of buying things or acquiring assets. It is a wise idea to stay very much within your means. You must not overspend and try to stay within whatever you earn every month while spending or buying things. This is a minor or rather simple financial target to achieve but it goes a long way in keeping you away from undesirable debts. Living firmly within your means seems to have major implications, as far as, your finances are concerned. When you make a resolve to genuinely curb your expenses and restrict your spending to your income, you do not tend to accumulate overpowering debts. Once you are free from the burden of overpowering debts every month, you would be having enough extra cash to fulfill your other critical financial and life goals and aspirations.

Try to Achieve Excellent Credit Score[/b]

Your credit score is certainly more than just a three-digit score. It is supposed to be a critical metric of your overall financial well-being. A perfect score of 850 seems to be elusive. However, over 750 could prove to be beneficial. You could get easy loan approvals with higher credit scores. More importantly, if you are having a higher credit score, it results in a lower rate of interest while borrowing money. That should be culminating in relatively lower monthly loan payments and you could pay a less amount in terms of interest during your loan term. Here are some tips to achieve the perfect credit score.

· You must pay off all your outstanding bills promptly on time.

· Consider maintaining low balances for all your credit card payments.

· Use a combination of loans and credit cards.

· Consider keeping older accounts open.

· You must remember to put in your request for new credit.

Reduce Your Debt[/b]

As per https://www.forbes.com, average personal debt seems to have gone up more than ever before to almost $38,000, with over 50 percent of Americans consider debt reduction as their no.1 financial priority. You need to make a precise objective of exactly how much debt should be eliminated this year. You must focus on getting debt-free but you may not achieve such a lofty goal if you are having overpowering debt and or if you do not have sufficient income to tackle all your debts in one go. You must be realistic in your approach and set an achievable financial goal. Determine precisely what additional amount you would like to divert towards reaching your goal of becoming debt-free. If you chalk out a clear debt repayment plan and follow it religiously, you could speed up your debt elimination process. You may get in touch with reputed organizations such as NationaldebtRelief.com [/b]for perfect debt relief solutions.

Stay Away from Adding Any New Debt This Year[/b]

This is a crucial financial goal and you must strive relentlessly to achieve this goal. You must try your best not to take a new loan or add on to your already existing pile of debts. The only exception you could consider making is buying a new home. This automatically implies that you need to be serious about stop utilizing your numerous credit cards for good. You must try your best to carry on using your existing car and you may save up funds for a new vehicle in a separate account. If you stay committed to not borrowing money any longer, you could then think in terms of making major purchases and eliminate a major chunk of your debt.

Always Be Ready for Financial Emergencies[/b]

Even if you are living in a slim budget and carrying a relatively low debt amount, you are not in a position to predict the ups and downs of life. When an unanticipated injury or illness could leave you unemployed in the short-term, you could seek solace at the thought of your emergency fund. Moreover, if you are involved in a car crash and you have to make payments for expensive repairs, you could rest assured that your emergency fund could be tapped for saving the day.

Some Financial Mistakes to Avoid to Steer Clear of Debts[/b]

Mistake: To Assume that Things Would Be Fine On Their Own[/b]

It is a huge mistake to sit tight and take no proactive steps simply because you think that everything would work out fine someday as if by magic. Unless you have a solid plan to religiously follow your budget and stick to a proper debt repayment plan, remember nothing would change for you. Chalk out a proper budget and stick to it firmly if you wish to regain a firm grip over your finances and overwhelming debts. Only a robust financial plan could help you in achieving your financial goals.

Mistake: To Depend on Your Credit Cards for Survival & Sustenance[/b]

If you try using credit cards to get out of your outstanding debt, you could be successful in one or maybe a couple of occasions. However, if you get into the habit of using your credit card for making your outstanding payments, you would end up accumulating a mountain of debts. Create an emergency fund for that rainy day. You must make it a point to stop using your credit cards.

Mistake: Not Contributing to the Retirement Fund[/b]

You must make contributions to your retirement fund regularly. You must not wait to create a retirement fund until you have eliminated your debts or have bought a home. You must start making contributions toward your retirement fund at a very early age.

Conclusion[/b]

Life’s milestones are bound to impact your finances. Whenever you are thinking of buying a home or getting married, or opting for a change of career, you must be prepared for the changes and adjustments that come to your life. Keep following smart financial tips and steer clear of mistakes so that you do not have to grapple with multiple debts.

 
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