A solid financial plan can be the difference between achieving financial success and living pay to pay. Here’s how to create a concrete plan for the next five years that’s actionable and may be easier to stick to.
Financial blog Girls Just Wanna Have Funds recommends creating financial goals with the SMART goal-setting method: Specific, Measurable, Attainable, Realistic, and Timely. For example, rather than just say you’ll create an emergency fund, make the goal measurable by specifying a $US5,000 emergency fund by the end of the year.
Using the SMART method can make your financial plan more successful. It helps you avoid unrealistic goals like cutting out all dining out and vague goals like “investing for retirement.”
Girls Just Wanna Have Funds also suggests some basic goals to consider for your plan: From saving for emergencies and paying down debt to creating a will. You can use the “purpose-focused financial plan” image, shown above, from author David Bach as a template for creating your own specific plan.
Check out the article for more tips. Do you have a financial plan already? If not, now’s a good time to create one, so you can get all your saving and spending resolutions down for next year.
Want Financial Freedom? Create a Solid 5 Year Financial Plan that Would Make Oprah Proud [Girls Just Wanna Have Funds]