How to meet financial goals and keep your finances in check

With the arrival of this new year also comes goals and planning to make them come true, and with that in mind, today we want to help you achieve your financial goals.

Achieving financial goals is a challenging journey, but it is essential to achieving stability and long-term goals.

Whether it’s saving for retirement, settle debts or make dreams come true, solid financial planning is essential.

And today we’re going to teach you some tips so you can fulfill all your New Year’s financial resolutions.

Your goal could be to save a certain amount of money, make a down payment on something you want to buy or even start investing. There are several possible financial goals you can have in this new chapter that is beginning.

How to create financial goals to achieve this year?

Before you can achieve your financial goals, you need to create them. And if you still don't know what you want to achieve by the end of the year, we'll help you think of some goals that might make sense.

Goals help us plan the path we are going to take to achieve something, and they can be short, medium and long term.

Short-term goals can usually be completed in one to three months, while medium-term goals can usually be completed in six months, and long-term goals can last years.

Depending on your goals, the action plan will also need to change, which is why when defining them you need to be specific with what you want, so define amounts, what the money will be sent for and how you seek to achieve it.

And in addition to being specific, you also need to be realistic about what you want; goals that are too ambitious or utopian can lead to giving up.

Try to start with small, achievable steps. Not only are they valid, they also serve as motivation.

Write down your goals, whether in apps, on paper or somewhere you see them often so you can remember them and stay focused.

Also think about deadlines, they don't need to be absolute, but they help you not to get lost along the way to achieving your goal.

Tips for achieving financial goals

Now let's look at the best tips that can help you have a more effective approach when it comes to achieving your New Year's financial goals.

1 – Understand your expenses

The first step to achieving your financial goals is to understand your spending and financial habits.

You need to do this to understand what you spend the most on. Keep track of this for a month and gain a better understanding.

With an app connected to your bank accounts, you can understand whether your money is going more towards leisure, home maintenance, clothes purchases or other things.

By tracking your expenses, you can better think about your next steps and improve your financial habits, as you will begin to understand where your biggest expenses are and how you can save money.

2 – Set short, medium and long term goals

We've already explained how short, medium and long-term goals work, but now we're going to tell you about a technique for defining metrics.

The SMART technique consists of defining specific, measurable, achievable, relevant and timely goals.

Therefore, your metrics will need to be clear about what you want, specific, realistic, and relevant to your overall benefits.

3 – Create a monthly budget

Create a detailed budget that includes income, fixed expenses, and variable expenses. This gives you a clear picture of your financial situation and helps you allocate resources to your goals.

A budget will help you stay on track to meet the financial goals you want to achieve.

And in this environment there are several types of budgets, each one working differently so that they can meet your needs.

4 – Create an action plan

Once you have your goals defined and a budget prepared, you can move on to creating your action plan, which usually has a step-by-step process that can take you to the final stage.

The plan will include steps that will bring you closer to your final goal, for example, if you want to save 1000 reais in 6 months, one of the steps in your action plan could be to reduce your monthly expenses by an average of R$$200 reais.

5 – Use control tools

With technology we no longer need to do things with so many time-consuming processes, writing by hand, unless you want that. 

We can take advantage of apps, websites, and software to monitor our spending, categorize types of expenses, and track progress toward spending and financial goals.

Applications like Mobills, Organizze, Guia Bolso, Meu Bolso, Meu Controle de Gastos and others are options available for computers, Android and iOS that allow you to have complete control in the palm of your hand.

6 – Create an emergency fund

An emergency fund is a monetary reserve that can be used in case of unforeseen events, such as job loss, medical expenses, or if something breaks and needs repair.

In this case, you need to have an emergency fund that can help you for three to six months, so that if something happens you are not left helpless and unable to pay your monthly expenses.

7 – Look for alternatives for extra income

A little extra income never hurt anyone, right? Especially for those who want to achieve their financial goals.

Therefore, the extra income can help you save money or give you a little more breathing room at the end of the month.

If your form of extra income does not compromise your health, time and performance in your main job, it can be a good tactic to increase your budget, save more or even build up financial reserves.

With these tips you will be able to achieve your financial goals and advance your long-term objectives.