When we are first introduced to the aspect of money, it’s when we see our parents hand over some paper slips and swipe their cards. However, what we don’t realize at a young age is that the funds were used for a purpose. Money isn’t something we spend just to spend. Having financial goals is important for a variety of reasons. For one thing, they’re what propel you forward in establishing security. But maybe you’re unsure of what goals you should be striving for. Here are a few financial goals to work towards.
One goal that many hope to achieve is to put away enough money to start their own business. Businesses, despite how common they are these days, require a lot of funding to get up and running. Some people even dive into their personal savings and retirement account just to launch it. While you’re more than able to pay for everything yourself, it’s good to avoid depleting your savings. Rather than risk everything, you can play it safer if you take out a small business loan. There are companies that commit themselves to ensuring the success of every business they give loans to. In additional to offering favorable interest rates, they can connect their borrowers to a rich, diverse support network.
Children are the future, but they also cost more money than you’d expect. Similar to opening a business, many people want to have a family of their own. Some people even start planning for it when they get their first job. The average price of child care is between $10,000 to almost $15,000 annually. This goal should also teach you the fundamentals of budgeting and saving your money as well. When you have something as important as a child to take care of, you need to be extremely diligent with your money. Following the 50/30/20 rule into your budget is a great way to get a good grasp on your finances.
The 50% goes to necessities such as child care and rent, 30% goes to whatever you may want and the remaining 20% goes to your savings. If you’re looking to maximize your saving potential, you can combine the 30% with the 20% and have an even 50/50. The first half goes to what you need and the other goes right into your bank account.
You should know your own net worth before determining how much, if any, money you have to invest since investing is one of those high-risk, high-reward financial goals. Granted, there are many ways you can invest ranging from the traditional stock market to trying your hand at cryptocurrency. The choice is yours to make. Regardless of that choice, however, you need to have an appropriate amount of money to get started. You don’t just throw $20 and expect it to multiply by the hundreds overnight. It’s a process you need to be careful about because the risk can cause almost irreparable damage to your finances.