Money is a topic that is on everyone’s minds. We need it to eat, for shelter, to buy absolutely everything. There is no wonder why Jesus talked about money more than he did love in the new testament. Money is all around us and we have to deal with it. Letting our money just go by is not an option. We need to be intentional with our money, and have a plan for it. If we don’t have a plan for our money, we’ll end up falling for Visa’s and Citibank’s plan for our money, which will leave it in their pockets, and not ours.
Having goals for your money is not optional, period. You have to have financial goals in order to be successful. If you let your money just come and go as you get your paychecks and buy your daily expenses, you won’t make any progress. When you have a financial goal and make it a priority, you will then find your self working hard to meet that goal. You will spend less money, work extra hours, and make achieving that goal a priority. It does work, you just need to go out there and do it!
So we understand that financial goals are important, but what financial goals should we have? It depends where you are in life. If you’re just starting out, you will probably want to save 6 months of living expenses for emergencies. That can easily be a goal. Save up money until you have a nice pile of cash in case an automobile breaks down or you need some prescription drugs from the doctor.
If you have money for emergencies, you should probably focus on getting debt out of your life. Focus on paying off a car, or kicking Sallie Mae out of the spare bedroom! Focus on your debts one at a time, most preferably from smallest to largest, and get rid of them!
When you have money for emergencies saved up and are done with your debt, now you can start saving seriously. You might want to focus on saving money for retirement, such as putting x number of dollars in your 401k or ROTH IRA each month for retirement. If your retirement plan is going just fine, and your finances in order, you might want to consider paying off your home early by making extra large principal payments on it.
If all of these goals are said and done, you don’t have much to do besides build a bunch of wealth and give a lot of it a way. We can accomplish these things, but first we must set goals in order to accomplished them! Make goals and stick to them!