Here are our tips on making 2020 a successful financial year.
1. Setting Goals that Matter to You
Everyone’s financial situation is different so naturally your financial goals will be different as well. Take a few minutes to ponder what you would like to achieve this year in terms of your finances.
Two to three goals in a year are more than enough. Make sure that they help you grow your net worth. You can calculate your net worth by subtracting your liabilities from your assets.
Here are some common financial goals anyone can work towards.
- Creating and sticking to a budget
- Reducing debt
- Earning extra income
- Saving money
- Paying down your mortgage
- Making the effort to understand investments better
- Saving for a rainy day
2. Specify Your Goals
You might have noticed that the above mentioned goals are very general. Remember that when you’re setting a financial goal, you need to make it as specific as possible. This is what the most financially successful people in the world do.
For example if you’ve decided on understanding investments more, you could say that you will spend an hour each day learning about various investment methods through free online courses.
If you want to increase your income, you could start freelancing or hustling to increase it by 20 percent each month.
These objective of these clear and concise goals is to make it easier for you to take action on them.
3. Measure Progress
You’ll know that you’re making progress when your net worth increases over a period of time. Keep track of your net worth by using free online templates or even make your own. Make sure to update it every month.
If you don’t see any progress you might need to step back and see what went wrong. Then you can revise your plan and get back to working towards them.