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If there is one thing that we can all learn from the pandemic, it is that nothing is ever truly certain. Yet, ironically in this world full of uncertainties, security is something that people highly prioritize and strive for. Whether it is buying another packet of pasta or applying for health insurance, we all aspire to be safe even in the face of danger.

While it is true that we don’t require money to be happy, having some at hand definitely helps. Being in a stable financial situation helps in fulfilling the things you desire on your wish list and easing your burden in cases of emergencies.

As different people have different needs, the meaning of being financially stable becomes subjective.  But whatever your need is, here we have gathered some of the things you need to pay attention to as you set your financial goals.

Take a trip to the future

First thing first, let yourself imagine the kind of life you want to live. Then, include those activities and lifestyles you’ve only got to experience through the screen of your smartphone. Let your imagination run its course, and maybe some more.

Put it in print

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As every good strategy requires a good action plan, list down every financial thing that you need to do to achieve said life you dream of. For example, if you want to travel at least once a year, then set a budget for each vacation. If you want to spend the winter stage of your life in a retirement home, then figure out the most reliable savings plan.

Organizing is caring

In order to achieve every single thing on your list, you need to be able to pick and prioritize which one of them needs more urgent attending. For example, if you are planning on building a family, you may have to put saving for a house first and saving for a car second. As different people have different importance, this list would vary from person to person.

A rule you can follow when organizing your priority list is to sort your goals based on their terms, from near to distant. Here we have the list of terms you can use to ease the journey in achieving your goals. 

Short-term goals

Generally, one year or less is an adequate time to reach your short-term goals. In most cases, this includes establishing a budget for your daily needs, creating an emergency fund, and paying off your credit card debts.

Mid-term goals

Though it would definitely take more time, your mid-term financial goals should be able to be achieved after a few years. Think of it as a bridge between your short- and long-term goals. By achieving your mid-term goals, you are building a solid structure for your house that is financial security.

This term would usually include buying a new laptop for work or maybe your first house. Paying off your student loans or later your house loans also create the stability you would need before preparing your long-term financial goals.

Long-term goals

Long-term goals would take five or more years to achieve most of the time. This is because they require more money and thus commitment to turn them into reality. Some of the goals include creating a fund for your children’s education and paying off any long-term loans that you still have.

Having said that, long-term goals mostly cover your need for a comfortable retirement. You don’t have to depend solely on your savings to achieve this goal. Your region’s pension benefits are one of the things you can take into account.

Plan SMART

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In the course of your financial planning, make sure that you make use of the SMART principle. This concept stands for Specific, Measurable, Achievable, Relevant, and Timely, which can help keep you on track and eliminate unnecessary things from your financial goals. At each stage of your planning, take some time to ask yourself whether your goals can be considered as SMART, and only proceed when the answer is a definite yes.

Monitor your progress

Once you’ve figured out the details of your financial plans, create a goal chart for more ease in monitoring your progress. Don’t forget to review your plan; the more frequent the better, to make sure you can go back to the right lane when you steer off the course. Try to solve each issue instead of just giving up on them and letting your dreams die.

All in all, reaching financial security would require solid financial planning and loads of commitment. Be persistent in following your plan, and when the time calls for it, be smart in your flexibility.