7 Steps to Set Financial Priorities

May 20, 2013 0 comment Personal Finance News
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coupleThe path towards a solid and stable financial reality can be tricky to follow without guidelines and some kind of structure to help keep you focused and motivated. Follow our tips to gain some perspective:

 

  1. 1.    Develop sensible and attainable objectives

It is not achievable to accomplish every single financial goal that you envision, so it is important to clearly identify financial goals that are realistic and important to you. By doing so, you are creating aims that you are more likely to achieve, rather than setting yourself up for failure and disappointment by pitching goals that are too hard to hit.
Financial Priorities Infographic

 

  1. 2.    Place your focus on the priorities which are most important to you

If you are looking to jump onto the property ladder, you will most likely want to prioritize saving for a mortgage deposit. Understand how interlinking behaviors can help bring about your aims. For example, when saving for a mortgage deposit, you will also want to make sure you prioritize any existing debt obligations to be paid on time. This will help preserve your credit score and help you ultimately qualify for lower and more competitive mortgage rates.

  1. 3.    Don’t be disheartened by conflicting demands

Chances are that your aims may be in conflict and sometimes compete with one another. For example, the wannabe home owner may find that their desire to save up a lump sum for a home deposit conflicts and competes with their ability to meet all of their existing repayment obligations. When faced with a conflict, ask yourself which of the conflicting goals will be most beneficial to your finances or which will cause the greatest harm if delayed?

  1. 4.    Be open to re-prioritization

Re-prioritization is a necessary part of setting attainable financial priorities. In cases when competing demands occur, always focus on the bigger picture – while there will always be more time to save money, it takes more work to repair a credit score damaged by missed payments and defaults, so keep your existing affairs in order before entering into new debt obligations.

  1. 5.    Understand that time plays a big part

Most likely, your financial goals will have a time-sensitive aspect to them. If you had a lifetime to achieve them, they wouldn’t be nearly as challenging as reaching them within 1-3 years for example. If you are younger, you have time on your side to achieve your objectives and build your “nest egg,” pay down debts and achieve a more solvent financial standing, so give yourself an appropriate timescale.

  1. 6.    Select goals that will maximize your security and happiness

When you are setting your list of financial goals, it is important to include things that will lead to your financial happiness, security and fulfillment. Buying a sports car or making a large luxury expense will not help to achieve financial security, so you should steer clear of adding frivolous “instant gratification” goals that may harm your fiscal wellbeing in the future. Some items that should make it on your list are things like building up an emergency savings fund, paying down debt, and covering your kids’ educational expenses such as school and college tuitions.

  1. 7.    Realize that sometimes taking a short term loan can help you achieve longer term priorities

If in order to satisfy the “bigger picture” goals you may need to look at ways to increase your temporary cash flow with a cash advance. This is totally acceptable and more responsible than ignoring the problem. Don’t fall behind on bills or struggle to make ends meet – CashAdvanceOnline.net can help you apply for a quick, no-obligation cash advance now.


Good luck!

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