The success in planning long term personal finances lies very much in the strategies that we consciously adopt in the short term. By short term we mean the days, weeks and months that we grind away at our work place or homes. It is much easier said than done but people fall off the wagon many times before picking themselves up to resume their longish journey. But it is possible to live a rich and fruitful life today and all the other days that follow it in a responsible way so that we can enjoy a secure and safer future.
We can set the ball rolling by prioritizing our needs
When we are younger we tend to be more idealistic and ambitious and that makes it easier to set goals and target long term achievements in a systematic manner. Here are some live examples that should resonate meaningfully in all of us:
Focusing on projects that are home centric: On the capital intensive side you need to overhaul the HVAC system and opt for solar energy panels to cut long term energy bills. This work may need to be balanced with equally crucial bathroom repairs and kitchen renovation jobs that can no longer be postponed because you could be saddled with more expensive solutions in the long term.
Starting early on your retirement contribution: Deciding to contribute early in life to your retirement fund allows more time for interest compounding and more opportunities for growing savings in a meaningful manner.
Augmenting one’s emergency savings: Home repairs, equipment upgrades and essential replacements can consume plenty of money that could severely undermine your finances if you haven’t planned for the expenditure much in advance. This is where the emergency fund assumes great importance. You need to plan essential expenditure while ensuring that you always retain a separate untouched emergency cache that will come in handy when the dollar needs to be stretched.
Ensuring timely payment of the student loan: Of all the loans that you juggle, the student loan can potentially become an unbearable burden if you neglect its timely repayment.
Ensuring you keep up with mortgage payments and refinance obligations: The worst thing that can happen to a householder is getting his attention diverted by the monotony of the daily grind and become obsessed with routine expenditure, thereby ending up neglecting his long term mortgage or refinance obligations.
These are only a few of the most exasperating concerns that bedevil any householder and they are by no means an exhaustive list of needs that vie for our attention and our money. The stage will come when we will be confronted with the necessity of prioritizing our needs simply because it will be impossible to fulfill all goals with our limited resources. Keeping the priority list uncluttered and simple with fewer items will help you maximize resource utilization.
Splitting the larger goal into more achievable smaller goals
The problem that confronts all long term planners is their inability to maintain the daily commitment and discipline necessary to achieve their ultimate goals. The difficulty lies in staying motivated in the short term. As an example let’s take multiple loans that compete for your time and attention. Instead of continuing all loans together for an extended repayment period we can try focusing first on clearing the loans with smaller balances thereby splitting the bigger headaches into more achievable smaller parts or mini goals.
Loans are much easier to tackle if we plan ahead to reduce sizeable chunks annually. Let’s assume a student loan is outstanding with a balance of $78,383.28. In the current year you could budget to bring down the balance so that the outstanding starts with a six in the New Year. It will be a heady achievement when you ultimately realize that goal by accelerating loan repayment. Such strategies are way more efficient and result oriented than just allowing loans to follow their normal tortuous course.
Motivate yourself with a personal finance buddy
It is a comforting thought to have a friend with whom you can share you financial goals and discuss your immediate priorities. This may even open up a friendly rivalry or mutually agreed goals that add a touch of competitiveness to the manner in which you handle personal finances. It can be a win-win situation that promises better results than if you were treading a lonely path ignorant of the opportunities that differing strategies may reveal.
Of course such a strategy yields the best results if the personal finance buddy hails from an identical background and you confront almost the same problems and challenges. If the problems differ widely and your goals are poles apart rivalry might creation friction and frustration instead of enlightenment and achievement.
The ideal companion should be a person who motivates and inspires you to achieve your goals despite the obstacles and challenges coming in the way. You wouldn’t be half as excited if your buddy shows bloated pride for his own achievements while being sarcastic and jocular about your perceived failures. The best friend is one who gently nudges you back on track whenever you stray from the chosen path.
You may plan well but staying motivated is the challenge
Planning your kid’s education, getting free of debt or saving up for retirement are definitely long term goals but they will only succeed if you are relentless in achieving short term challenges, and that becomes possible only if motivation levels are high. Equally important to setting long term goals is determining how you will motivate yourself to fulfill the infinitely monotonous tasks that will be your daily grind. Success stories of friends and well-wishers can be a motivating factor; career aspirations that can be fulfilled and retirement dreams that can be achieved are by themselves powerful motivating influences.
Living life to the brim and enjoying every moment as if it was your last day on earth but sparing little thought to the future or showing less willingness to design and execute long term goals can land you in situations that could trouble you in later years. Committing yourself persistently to short term objectives is the only solution to achieving long term goals, and as our tips reveal there are tried and tested formulae that can help you achieve even the impossible. TNL Car Title Loans 5900 S Lake Forest Dr #177, McKinney, TX, 75070 (214) 997-6580