If you ever want to be financially independent, or out of debt, you need to make sure that you are setting realistic financial goals. having unrealistic expectations as to how much money you have, or how much money you make, will drastically alter your financial future. This means that you have to be realistic when it comes to your financial future and any financial goals you might have. How can you do this?
The first thing you need to do is to figure out what kind of career path you would like to have. This is important because the career you choose will determine how much money you make. If you decide you want to be a cashier at the grocery store, you will make significantly less than if you became professional athlete. This might not affect your financial decisions right now, but knowing what kind of job you wish to have will help you determine what kind of financial future you will have.
Once you’ve finished dreaming, you should figure out what kind of financial situation you are in right now. How much money are you bringing in, and how much debt you have? knowing how much do you have and how much income you have will be important to determining the next two years of your life. If you are making $25,000 year now, and you have college loans,you might want to live with your parents, as opposed to buying a house. You also might want to avoid a costly car payment as well.
If you are and a lot of that now, the you anticipate a big raise in the future, you might be able to spend a little bit more now. For example, if you are a college student that makes nine dollars now at a part-time job, you may not be able to spend big. However, if you have a job offer that will pay you $100,000 a year, you might be more willing to take out a loan for a house, or car. Knowing how your long-term financial situation fits in with how you’re doing now will allow you to make good financial decisions.
Always be conservative when making financial goals. Assume that it will take longer than you expect to get where you want to be. While you don’t want to be pessimistic, you should realize that life will throw curveballs in your way. there will be emergencies, perhaps unplanned child and many other things that can happen you along the way. This means that you should save some of your money, just in case.
Knowing your financial situation now help you plan for the short term, while having a plan for the long-term is also beneficial. Always be conservative in your financial approach because you never know what can happen to you. Invest your money wisely and stay away from as much debt as possible.