Are you worried about your financial wellness? Does it keep you up at night? If your answer is yes, don’t worry because you are not alone.
A lot of people around the world constantly worry about money. The truth is that money is one of the major reasons why people lose sleep. Other reasons include work, relationships, and much more.
If you want to sleep better at night and work toward your personal definition of financial bliss, there are a couple of things you can follow.
So, how can a person achieve financial bliss in 5 years? Is it possible? The answer is yes.
Everything starts out with a plan. You also need to have a desire for something more in your life. Aside from that, you’ll require a bit of persistence and commitment along the way.
What Are Financial Goals?
For those who don’t know, financial goals are spending targets, investments, or savings you wish to achieve over a period. Typically, the stage of life you are in determines what kind of goals you want to achieve.
For instance, if you are still in college, it might be a simple short-term goal such as saving for a car or saving for custom LED lights (elstarled.com).
Meanwhile, an individual with a growing family will have a long-term goal of purchasing a house. Other well-known financial goals for this stage of life include saving for retirement and saving for the college education of their kid.
Completely Get Rid of Your Debt
One of the biggest benefits of this goal is that any person can do this. It does not matter what your wealth level or income is.
Furthermore, it is almost a requirement that you get rid of your debt if you want to get the most out of your finances.
A couple of people around the world debate about debt. Some people say it’s bad, while other people say it is good.
Well, you should keep in mind that all debt is bad debt at some point in your life. That is why you need to get rid of debt. This includes your home’s mortgage.
While the purpose of your debt might be noble at first, it can be a huge drag on your income as time passes by.
There are a lot of reasons why you should get rid of your debt. This includes:
- It will free your mind of the stress and worry that comes with it.
- It will make it easier for you to quit a job you do not like.
- It will get rid of the asterisk from your finances.
- It will leave you with more money for investing and savings.
- You will have complete control over your income.
Save an Emergency Fund
This should be one of your main priorities. The minimum standard for an emergency fund is 3 months of liquidity. It’s better to have 6 months or more.
This is a moderate amount to help you manage an unexpected expense. However, how much you save greatly varies on your expenses, income, whether or not you own a house, and much more.
Keep in mind that emergency funds are vital in a fragile job market. You can usually use emergency funds to pay your mortgage, hospital bills, surprise car repair, and a range of other unexpected problems.
Knowing DIY tips on how to save for an emergency fund can be extremely helpful.
Improve Your Income by Developing Skills
This does not mean you should go back to college for an extra degree. It may mean you should take on extra responsibility or training at your current job.
It may also mean finding a mentor that can offer feedback and tips. It may mean taking a class at the public library, networking in your profession, attending workshops and conferences, working a part-time job, and anything that can get you more knowledge and contacts.
Small steps can result in large payoffs down the line.
Start a Business
It can be difficult to start a business. However, it can be extremely fulfilling as well. Every person out there wants to be a boss.
If you start a business, you’ll have to create a business plan, prepare the capital, and stick to a monthly budget within your means.
Keep in mind that starting a business is meant to make more money, not spend your own.
Live on Less Than You Earn
A lot of people probably suggest this tip. However, it’s well worth repeating it here because it is one of the most important things you can do to achieve financial bliss.
If you live on less than you earn, you’ll always have a lot of money. It does not matter what you do. You should live on less than you earn.
If you do, you will have a lot of money for paying off debt, investments, and savings.
Stop Your Addiction
This might not be a financial goal. However, it’s an obstacle that will stand in the way of all your financial goals. It does not matter what they are.
Keep in mind that addiction to anything can be a parasite to your finances.
If you think that you might have an addiction to things, make it your financial goal to stop that addiction.
Your life will be a lot better if you end your addiction.
When you’re planning to get rid of your items, don’t forget to always bring hand sanitizer with you.
Reaching a point of financial bliss has nothing to do with magic or luck. It is just a matter of setting excellent financial goals and achieving them.
It does not matter if you do it slowly. The important thing is that you’ve got financial goals.
Once you establish these goals in your life and make them part of your habits, achieving financial bliss can be extremely easy. You won’t even notice that you’re doing it already.