Setting Goals & Saving
Setting Goals and Saving
Setting Financial Goals
Maybe you have started your first job or a new job . You may be making more money than you ever have before , but you may also be paying more bills than you ever have before ! It may be helpful to starting thinking about how you want to spend your money before you start spending it . What are your goals and priorities ? Whatever they are , some early planning can help you reach those goals faster .
You may want to divide your goals into short term ( within 1 year ), medium term ( 1-3 years ) and long term ( 5 + years ).
Here are some examples of goals :
� Short term : flat screen TV , new gear
� Medium term : car , paying off debt
� Long term : down payment on a home
How do you reach these goals ? Setting a budget can be super helpful . It will help you get an idea of what your expenses are and how you are currently spending your money . There are lots of tools out there that can help you make a budget and keep on it . There are even some great free apps that you can download as well .
If you ’ ve never made a budget before , these tools can help you get there : http :// www . fcac-acfc . gc . ca / Eng / resources / publications / budgeting / Pages / MakingaB -Commentf . aspx
The following is a link to a budget worksheet . https :// practicalmoneyskills . ca / downloads / pdfs / PMSFL _ Budget _ 1 . pdf
Rainy Day Fund
Photo credit CJS64 Man with a camera via Visual hunt CC BY-ND
Emergencies happen and it helps to be prepared . Think of this rainy day fund as your insurance for the unexpected . Having savings set aside can help you pay your bills even if you aren ’ t working .
Experts say you should set aside the equivalent of 3-6 months of your salary . If you start a savings program that automatically withdraws a small amount of money from your bank account , you won ’ t even have to think about it .
You can speak to your bank about ways to set-up your bank account for this . Your bank can help you decide how you want to invest your savings . There are many options out there , and they can help you make that choice .
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