As another fiscal year nears its end, I am sure we are all taking a serious look at our income, expenditure, and savings over the past year. For some of us, the last twelve months may have been prosperous. However, for others, the story may be a little different.
With the new financial year just around the corner, now is the best time to start fresh with a clean slate, work toward financial progress, and become more financially independent. Here are 4 fool-proof ways to make financial strides this year:
1. Set a Financial Goal
If you have read my book “Homeless to Billionaire: The 18 Principles of Wealth Attraction and Creating Unlimited Opportunity,” you would have understood that the first step of the formula for success is goal-setting. It is no different from financial success.
Before you set your financial goals for the coming year, think long and hard about how much you want to earn, how much you want to spend, and how much you want to invest. Next, rethink the same questions and then be specific. Remember that the more attention you pay to detail, the better. Ask yourself how you will earn your desired income, what you will spend it on, and what you will invest in. At the same time, do not forget to set a figure aside for savings. Once you answer these questions truthfully, you will have your goals.
2. Think Small
Setting big financial goals can be daunting and sometimes even discouraging, especially if the progress you make is slower than anticipated or feels insignificant compared with your targets.
TAKE THE FIRST STEP TO SUCCESS
GET THE GOAL-SETTING GUIDE & WORKSHEET
Like any goal, it is important to break down financial goals into smaller and more manageable ones, with each goal ascending in complexity if necessary. For instance, if you want to pay off a debt of $15,000 within the next year, reframe the situation and turn it into a monthly payment of $1250 for the next twelve months. This ensures that you slowly but consistently work toward meeting your goal. Plus, seeing the continual progress you make will motivate you more to achieve your goal.
3. Make a Budget and Stick to It
If you are serious about your finances, then you have to start budgeting. Budgeting means making a spending plan for your income and ensures that you will always have enough money for the important things.
Before setting a budget, it’s helpful to record all your expenses for a month or two, no matter how small, so that you have a solid idea of what you are spending money on. Once you have done that, you can then decide on what expenses to cut down on and what you can spend more on, and voila, you will have a budget.
4. Be Flexible
One of the reasons why sticking to financial goals is challenging is because of the constant sacrifices that are required to achieve them. To ensure that you pursue goals, you must be flexible.
For example, if one of your goals is getting part-time or freelance jobs to increase your income, but you later realize that it doesn’t bring in as much money as you had anticipated, it is alright to drop the idea and find another way to earn more. Doing something you dislike or are not passionate about can make you feel miserable and cause you to quit your goals altogether.
Attaining financial success is not easy. It takes years of hard work and perseverance to get to where you want to be. Do not be discouraged if you are not running towards the finish line as soon as others. Just remember that success is not a race, and it is essential that you reach it at a pace that you are comfortable with.
About Andres Pira – philanthropist, real estate tycoon, author, speaker, and global citizen. Andres Pira enjoys living in Thailand, where his journey began from Homeless to Billionaire.
Are you interested in free coaching? Click here to learn more.
Leave a comment below, and join the conversation!