Setting Financial Objectives for 2017
Let us just state up front that financial objectives are more significant than simple dreams or wishes. Yes, they can start as such, but they have an achievement plan behind them – something that lays out how you convert a desire into a tangible accomplishment.
That’s particularly important when it comes to monetary goals. Since they necessitate regular investments of money and determination over a long period of time, you need to have feasible plan to bring them to reality. Start by planning some financial objectives. If you’ve never understood much about this, here are some great financial goals that everyone should have, specifically for 2017.
Get Totally Out of Debt
The best thing about this goal is that anybody can do it, irrespective of income or wealth level. And if you want to get the maximum out of your finances, it’s almost a requirement that you get out of debt. For the time being, let’s overlook the good-debt-versus-bad-debt discussion. At some juncture in your life, all of your debt is bad debt and needs to be paid in full. That will of course include the mortgage on your home. Although the point of that debt may be principled at the beginning, it’s no less strain on your income than other types of debt as time passes by.
Create Secondary Income
Even if truly you love your job, developing multiple income streams is a type of income insurance. For that reason and this reason alone, it needs to be on your list of financial goals. Real estate investment is a fantastic way to develop this type of secondary income.
Live on Less Than You Earn
This topic has been covered this topic in other articles, but it is certainly worth repeating, since it is one of the most essential of all financial goals. By finding out how to live on less than you earn (no matter what) you will always have lots of income. That means that you’ll have plenty of money for savings, real estate investments, and for paying down debt.
Plan for Early Retirement
When most investors finally grasp the concept of compound interest, they are determined to put themselves in situations where they can retire by the age of 60 if they want to. Others don’t know if they’ll ever really retire, because they absolutely love what they do. Even if you categorically love what it is you do for a living, planning for premature retirement is one of the smartest financial goals.
Build an Emergency Fund
We usually think of having an emergency fund as being a short-term financial goal. And from a technical standpoint, that’s true. However, an emergency fund has vital long-term benefits, which is why it’s one of the best financial goals that you should plan to accomplish.