Setting Investment Goals for the New Year (Part 2)
Now that the new year is here, many of us have committed ourselves to changing the way we live for the better. Some of the most important things people focus on, especially in the new year, are personal finance, saving, and investing. Achieving financial independence is an admirable goal, but very few people know where to start. If you’re starting to take steps towards financial freedom this year, here are some tips you should follow to set financial goals for the new year.
Setting budgets and goals are great, but these efforts are futile if you do not have a plan to stay on track. Staying organized is a critical step to meeting your financial goals this year. There are several tools and budgeting apps out there that can help you remain on track. When it comes to your personal budget, the more organized you are the better.
Everyone is vulnerable to unforeseen emergencies. Without proper planning, your budget could fall apart should one arise. If you haven’t already done so, it’s important to establish an emergency fund. This will protect you if you experience any sort of unexpected emergency without breaking the bank.
Your fund should be at least 2 to 3 months’ worth of expenses. This fund may take a while to establish, but the personal financial freedom you gain from having it is worth the wait.
If you’re already investing, you’re on the right track. However, it is essential that you constantly monitor and review your investment vehicles to ensure you exit stale and unprofitable investments that have deteriorated or whose risk profiles have evolved over time for the worse.
Whether you start this in January, or put the planner into use halfway through the year, the promises and challenges will work for you and help get you focused on the financial success you’ve been striving for.