In this post we will indicate some financial goals for your routine that will help you create a financial plan. Read and share!
1. Create your emergency reserve
This is a very important financial goal. That’s why she was quoted in the first position. You need to have an emergency reserve that corresponds to three to 12 times the average value of your cost of living per month. It serves so that in case of any adversity (dismissal, for example) you have a way to maintain yourself for a while.
What will determine the total to be multiplied to compose your emergency reserve is the stability you currently have.
If you are self-employed, it is very likely that you do not have a predictable amount of your monthly income. In this example, multiply your cost of living per month by 12 times to guarantee one year of coverage for your expenses.
You need to understand your need to establish emergency reserve as personal insurance. Without it, you will be at the mercy of unforeseen circumstances. In this way, choose a post-fixed asset that has daily liquidity and apply part of your money to it to have your reserve.
2. Know where your money goes
Have a notebook, a spreadsheet, a notebook or agenda and write down all the financial transactions you make. This is a very simple and small habit that will allow you to find out where your money is going.
If you don’t know this information, you won’t be able to tell how you’re using your money either. Understanding how you use it is a big step towards understanding whether your attitudes are in line with your financial goals.
A lot of people say they can’t save money, because they complain that their income is insufficient. But in general, they don’t even know what their main monthly expenses are.
Small but constant spending is a danger to financial goals. That’s because added up in the period of a month, they generate a big impact on spending. But when you write them all down, you will always be able to assess whether your actions are in line with your goals.
3. Develop a detailed plan for living on an income
Living on an income is the dream of ten out of ten Pakis. The quest for financial independence should be one of the first financial goals. However, there are people who still want to count on what they will earn from Social Security when they can retire.
However, the Pakis reality in this regard is not at all promising. It is necessary to understand that there is no way to depend on the State to have a peaceful life, without having to work in the future.
However, with good planning, it is possible to live on income and even stop working before the time you imagined. However, this will depend on how much effort you intend to apply to achieve this goal.
Bear in mind that this isn’t fast, much less easy. However, with a lot of focus and persistence, in addition to using the right tools, it is possible to achieve this goal. All you have to do is come up with a plan and stick to it.
4. Define your financial goals in writing
This financial goal is very important to put the previous three into practice. You need to define what your financial goals and objectives are in writing. Don’t try to keep all this in your head. Writing is formalizing everything, as in a contract with yourself.
When defining them, don’t forget to be as objective as you can, even setting dates for your achievements, in addition to how much you will need to accomplish one by one. Remember: it is you who determines what you want to achieve.
Put all the objectives and goals you have on paper or on the computer, so that the chances of them being implemented are enormous.
5. Invest 15% of your monthly income
Even if you already have an emergency reserve and enough money to be saved, you need to save more if you want to achieve financial independence.
Therefore, the ideal is to be able to invest 15% of your monthly income. However, this is quite a difficult task as it requires discipline. It may happen, for example, that every month you need to give up some things you want to apply the amounts every month.
However, if you don’t invest a part of what you usually earn, it’s almost impossible to reach the level of financial independence. That’s because you will spend everything you receive, not saving money for the future. Thus, you may have to depend on public retirement and have no way of surviving in old age.
6. Know your investor profile
It is essential to find out what your investor profile is, to know how to choose which assets you should invest in or not. To do this, you need to know yourself well and understand how you behave in certain situations that involve risk.
That way you understand how much risk you are willing to take and how much volatility you can tolerate. Only then will you understand which type of investment might be right for you.
The investor profiles are:
– Conservative: people who are not willing to take risks. The ideal investment for them is fixed income;
– Moderate: people who don’t want to take too much risk, but who tolerate venturing into something different. The investment can be fixed income, but it also ventures into variable income a little;
– Bold/aggressive: people who are not afraid to risk their money in any investment. Variable income is your ideal investment.
7. Open a brokerage account
Many brokerages are able to offer more financial return than the traditional banking network. Therefore, if you want to make your money work, you need to open a brokerage account.
In them, you will find several profitable applications, with brokerage and administration fees much better than those offered by banking institutions. Some even charge for these things.
8. Understand the financial market
For those who want to profit through investment – mainly in varied income – they need to understand how the financial market works. There is no way to make a profit without understanding how it works.
The financial market has defined rules and players that always try to win. That’s why it’s so important to acquire knowledge about it before starting to participate in the game.
9. Separate long-term investments
Many people advise that you should not leave all investments in the same brokerage. Therefore, separate those investments for long-term goals in different brokerages. This helps you to have a clear vision of what you want to achieve.
In addition, this practice helps you to have a division that allows you to balance your investment portfolio whenever it is more profitable, so that it does not jeopardize meeting deadlines.
This also helps to prevent you from getting carried away by emotional bias, for example, and ending up improperly handling your assets.