3 Steps to Reach your Financial Goals
I am strong believer that money should work for you and provide value, never the other way around. But achieving your financial goals can sometimes be more complex and difficult than it seems. To work toward your aspirations, starting with a financial assessment allows for an in-depth review of your income, expenses, assets, and liabilities. It’s a great way to know where you are and how to reach your destination!
Here are 3 steps to reach your money goals using a financial assessment:
The first step in evaluating your financial health is to evaluate your income and be ready to make a change. Whether you decide to go back to school, get a certification, apply to a new job, or move to a city with more job opportunities, deciding to make a change is the first step to financial freedom. Everyone’s life and skills are different so there’s no one size fits all solution. Evaluate changes that fit your lifestyle and income stream.
What if you’ve already thought about all the ways you can make more money and you’re stuck? Well that leads us to step 2: Evaluate your expenses. One of the best ways to increase your income is to lower your expenses. Of course, your income won’t literally increase, but with less expenses you’ll have more of your income available. What are the things in your life that you are willing to let go?
That brings us to step 3: Evaluate your debt. Liabilities (most people refer to them simply as debt) are future sacrifices of economic benefits that you are obligated to make to other people or entities as a result of past transactions. Are you still paying off your credit card from over 10 years ago? How much student loans do you still have? Debt is one of the biggest barriers to financial freedom. Invest in items that produce long term wealth and value, not items that bring about debt and liabilities. Remember, money should work for YOU and provide YOU value, not the other way around.
Your income goals should never feel out of reach. In planning, you’ll find that your aspirations are not that far away. As always, I am here to help. Use this free log to head into 2022 prepared and invigorated for the new year!
