Feb 3, 2017
Pattie's financial tip of the day: Set goals and budget
Budgets have a bad reputation.
It is unfair because budgets work. We all need to know what we are spending our money on and why.
Restricting mindless spending frees up even a little cash flow, and allows it to be redirected to something that matters more to you. When you set a financial goal it is your goal. You can get excited about that goal and you can get behind it and you own it. You will not save for retirement if your adviser suggests it but if your lifestyle in retirement matters to you – actions will follow your intention. Goals can vary in nature – one year for short term,three to five years for medium term goals and fives years-plus for the long-term goals.
Bottom line is your goals are your blueprint for success. If you don’t quantify your goals and write them down, how will you ever know when to take corrective action or celebrate your achievement? Personally, every five years we revisit goals to ensure we are aligned and what mattered to us five years ago still matters to us today.
These plans are fluid and not carved in stone.
