Writing down and re-evaluating your top financial priorities can increase your chances of achieving financial success. If you haven't planned for your big-picture goals in a while, check out these tips and worksheets for creating your personal finance road map.
Most of us know the importance of budgeting and tracking our everyday spending and savings, but personal finance blog Get Rich Slowly reminds us to also step back and remind ourselves why we're working towards a goal. Focusing on the big picture — what you want to do with your money in the short and long term — can help you keep on track financially.
Use your big-picture goals, the things you're dreaming about, to prioritise your spending and savings. For example, if your big picture goal is to buy a house some day but you're living pay-to-pay, your financial priorities would include getting on track with your rent payments and daily essentials, building up your emergency fund, and paying off your credit cards, so you can get to a place where you can then save for that down payment.
One of the key tips from Get Rich Slowly is that you should re-evaluate and re-establish your personal finance goals whenever your life changes in a big way: you get married or get divorced, move somewhere or buy a house, start school or send your kid to school, get a new job or lose a job, have a child, etc. There will be lots of times when a financial priorities review will be in order, and your goals will depend on where you are in your life now.
Do you have a personal finance road map? Let's talk about our big picture goals in the comments. Photo by hockadilly
Establish Your Financial Priorities [Get Rich Slowly]