A big part of improving your financial health is setting achievable goals. But with regular bills, unexpected expenses, and everything else life throws at you, it can be difficult to focus on what matters and stay on track. That’s why it’s so important to set realistic goals that take into account the ups and downs of everyday life.
Here are some simple tips to create smart financial goals to help you conquer debt, grow your savings, and build a better future.
What Are Your Priorities?
To set the right goals, you need to know what your top priorities are. For most people, that means taking care of debts, particularly those that have moved into collections. For many Americans, getting out of debt is their top financial priority.
Once you have resolved past-due debts, you can start thinking about building your savings or investing in a home, car, or other major purchase.
Take a moment to write down what your top one or two priorities for the next year are. This allows you to focus in on achieving your most important goals instead of spreading your efforts over too many lesser tasks.
What is Achievable?
Another key aspect of creating goals is thinking about what is realistically achievable in the near future. Setting unachievable goals will only discourage you.
For example, if you have a past-due debt of $500, you’d probably like to pay it off as soon as possible. But when you look at your expected income for the next month, you know you won’t have an extra $500. This is when you need to ask how much money you will have available in each of the next few months?
Perhaps you won’t be able to spare $250 for the next two months, but you think you can make $100 payments for the next five. Commit to a course of action that will work within your budget. Fortunately, with MCM’s consumer portal, most consumers can create their own payment plan and spread payments over as many as 120 months.
Plan for Success
Now that you have an objective and a realistic idea of how to achieve it, it’s time to get specific. What actions will you have to take? This may be as simple as setting a reminder on your calendar or smartphone to make a payment each month, or perhaps part of your plan is to make some extra money driving for a rideshare service. Write down whatever you need to do to achieve your goal and schedule time for these actions.
Autopay is a helpful tool to help you stick with a payment plan. At MCMpay.com, you can set up automatic payments that will save you time and stress in the future.
Financial goals can be intimidating, but if you think them through and make a plan, there’s no reason you can’t achieve yours. It always helps to make your goals and action plan visible, so consider putting them somewhere you’ll see every day, like at your desk or on your bedroom door. When you keep your goals top of mind, you give yourself a better chance at achieving them.
*Although we hope these tips are helpful to you, Midland Credit Management does not offer financial advice. If you have questions or concerns about your personal finances, please speak to a financial advisor.