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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