Why should we have financial goals?

You probably already know the saying, ” If you don’t know where to go, anywhere is good .” The message of this sentence can be used for various situations in our lives.

For anything we think about doing in our lives, we need to have goals, destinies, goals . When we start our professional life, we have to know where we want to go in order to be able to achieve a certain goal.

And the purpose of this article is to show the importance of setting financial goals to achieve the greatest wealth (in financial terms, of course): financial independence .

 

What is a financial goal?

financial goal

Before discussing its importance, I need to explain what a financial objective is. Defining a financial goal means setting a value and a timeframe for achieving any given goal . As an example, buying an apartment is a goal. However, buying an apartment that costs $ 400,000 in 10 years is a financial goal.

The simple definition of time and value for each objective we have allows us to calculate exactly how long it takes to reach this goal. In other words, you can measure how close we are to achieving it.

 

Why is it important to define them?

Why is it important to define them?

There are several reasons for justifying the definition of financial objectives. The first – and perhaps most important – is ‘forced discipline’. For those without discipline, setting financial goals can help a lot. After all, if you don’t know why you should save money, you will surely spend it. If your money doesn’t have a destination, either one will do.

Another important factor is motivation. Once you know how close you are to reaching a certain goal, you will surely be more motivated to keep saving and get closer to your destination.

If you define that $ 5,000 is enough to make the trip of your dreams, for every $ 500 saved, you will be 10% closer to reaching your destination.

It is very gratifying to know that you are 5 months from changing your car or 20 months buying your apartment. And if in a given month you can save more, the time will shorten even more.

 

Conclusion

money loan

Setting financial goals is important because it forces us to save our money and allows us to accurately control how much time (and money) is left to reach a given goal. Also, those with no financial goals end up spending their money on superfluous things, giving us the feeling that we can’t afford to take a big trip or change our car. Have you ever stopped to think that there are people around you who earn roughly the same salary as you and can travel or even buy their own home while you are still suffering from debt?

Or until you can do it all, but many others are mired in debt, even if they get the same (or even more than you)? No matter what situation you fit in, you will clearly realize the importance of financial goals.

If you have any questions or want to share your opinion, leave a comment .

Leave a Reply

Your email address will not be published. Required fields are marked *