The first step to making your financial dreams come true is to define your desired outcome. Take time to reflect on where you are. Then consider where you want to be next year, in five years, 10 years, at retirement.
Focusing on your long-term vision can help you get past short-term obstacles.
Write down a list of goals – allow yourself to think BIG. Next, take some time to reflect on what you have written. Select the things that are most important to you. Consider what tradeoffs you are willing to make to get to your end result. Finally, make an action plan.
Let’s say you are planning to purchase a new automobile, and you want to spend around $30,000. You can either take out a loan, committing to pay a creditor, or you can choose to plan ahead. Think of the cash you could save by not paying interest.
- Set timeframe: ~5 years
- Estimate trade-in value of current vehicle: ~$10,000
- Deduct trade-in value from purchase price: $30k-$10k = $20,000
- Divide: $20,000 / 5 years = $4,000 per year, $333 per month you need to save*
- *NOTE: Interest charges to finance a $20,000 loan at 5% = $2,777.
- Consider your spending habits. What would you be willing to give up to reach your goal:
- $350 = Family dinner “out” 7 times a month @ $50 per meal
- $375 = 5 game day tickets @ $75
- $329 = Starbucks “gourmet” coffee and lunch “out” for the month
- How much can you save this year toward your financial goals?
What are your dreams?
We can assist you in turning your wishes into specific, attainable goals. We will sort through all the options. Then create a personalized strategy to fit your values and lifestyle. Whatever your age or spending habits, it’s never too late to begin doing the best thing for your financial future.
Contact us today to schedule time to get started on your plan for your future.
Kathy