A few more days before a new year begins! I am proud that you’ve come this far despite all the financial struggles and loans! This 2020, it’s fine to reset the financial goals that did not work for you in 2019. It is a new opportunity for you to make changes to your saving and spending habits. Use this chance to formulate new strategies, objectives, and goals so that you can start your new year with a brand new life. But if you think your goals last year will still work this time, it’s fine to retain them as well. Let me share with you some tips on how you can set your money goals in 2020.
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I am not talking about material things here like shoes, gadgets, and clothes. What I want you to do is to think about the assets you want to buy next year. How many condo units do you want to invest in? Where do you want to buy your first property? How much should you invest in your stocks account for the first time? How much should you allot for bonds? These are the things I want you to have. Start your money goals by listing all of these.
Start the year by annualizing your expenses. Think of the bills you are receiving constantly in a month and try to add them up so you could come up with the estimated total cost. Do you have monthly phone bills? How much are you paying monthly? Do you have gym memberships? All of these expenses should be recorded by you and it’s better if you can calculate them in a year. In this way, you will have an overview of your expected cash outflow. This will also help you look for additional income if you see that the expenses are too much.
Yes, you can welcome the new year by calculating your annual income. If you are an employee and you are receiving a fixed income a month, try to sum up the value you will get and deduct the expenses you just annualized. Is it enough? If yes, then it’s time for you set up the percentage you will put in your savings or investment account. If not, you will need to list down some of your ideas on how you can earn more income. Look for other channels of passive and active income as early as now.