3 Common Ways People Fail On Their Short-Term Money Goals (And What to do About Them!)
Many people think they want to save money for a significant purchase, such as holiday or a down payment on a motorbike, but simply knowing you want to save up isn’t enough. You need to be careful about making mistakes that will prevent you from meeting your financial goals. Here are 3 common ways people sabotage short-term money goals and some advice on how to fix them.
1 – You don’t have a plan
A lot of people cringe when they hear the word budget, but creating one is an essential part of financial health. Consider referring to the process as creating a spending plan instead, then get the figures put down. Seeing your incomings and outgoings in black and white will show whether or not you have any extra money to save or if you need to earn more or cut out something (or both) to meet your goals. A spending plan is the single most important tool for being able to afford what you really want.
2 – You don’t have clear goals with set deadlines
You can’t just say I want to buy (your designated purchase) someday. “Someday” may never come if you don’t save enough! Of course, you should not be unrealistic and set your savings goal too high, too soon either. Take a long look at your situation and decide what you can comfortably save. Be realistic and set a clear time line such as 6 or 9 months. (If in doubt, set the goal with the longer duration and then if you meet it early, great job!)
3 – You don’t keep tabs on how you’re doing
A few weeks into saving, ask yourself: Are you on track? Are you overextending yourself? Or could you be saving more? Do you need to ask for more hours at work or take on a side gig? Setting monthly, weekly, or even daily earning, spending, and savings goals (and then tracking your progress) is key. This can be as simple as putting pencil to paper or as complex as creating a detailed spreadsheet. The most important thing? Track your progress consistently and regularly, whatever method you choose.
Financial management is a difficult concept that many of us struggle to master. If youÛªre having financial difficulties, contact us today! Credit24 provides financing for motorbikes, rental bonds, medical expenses, and other short- to medium-term loans to help you meet your goals.