Save more, spend smarter, and make your money go further
As we ring in the New Year, financial resolutions top our to-do lists, from saving more to finding a new, better-paying job and getting out of debt once and for all.
As you map out your next money move, take heed of some of these top market and economic predictions for added guidance.
Higher Borrowing Costs
Looking to open a new credit card or apply for a mortgage this year? It may be wise to act sooner than later.
With the broader economy improving since the financial crisis (e.g. the national unemployment rate is hovering at 5%, down from nearly 10% in 2009), economists, including Janet Yellen, chairwoman of the Federal Reserve, believe it’s time for a tightening of monetary policy (translation: boost interest rates to curb inflation.)
Fortune Magazine’s “Crystal Ball,” says we can expect a three-quarter-point increase by next Thanksgiving to 1.25%.
When the Fed raises the overnight bank-lending rate (aka the Fed Funds rate) that typically has a domino effect on interest rates for other mainly short-term financial products like credit cards and car loans.
What this means for us? If you’re in the market to borrow money, I recommend reviewing your credit ahead of any applications to see what improvements (if any) are necessary. The higher your credit score, the better chances you have of achieving the lowest interest rates on the market.
If you’re seeking to refinance or buy a home this year, also aim to lock in a rate as soon as possible. While an increase in the Fed Funds rate isn’t necessarily a precursor to higher mortgage rates, we’re already seeing an uptick on 30-year home loans to above 4%. And Fannie Mae’s National Housing Survey shows that more than 50% of consumers think mortgage rates will continue to elevate over the next year.
Finally, for those of us with adjustable rate loans (e.g. some student loans and mortgages) we may want to pay off our debt more aggressively or refinance to a fixed-rate loan to put a lid on rising monthly payments down the road.
Less Sticker Shock in Housing
With home loan rates expected to track north, home values may see some cooling in 2017. That’s because when mortgage rates jump, demand for housing tends to slowdown, placing pressure on sale prices.
Not to mention, after riding a hot streak in recent years with prices across the country hitting near pre-recession levels, real estate experts at Zillow.com now predict a “normalizing” market with more moderate price growth of 3.6% across the country in 2017, compared to 4.8% last year.
Prepare for more affordability in areas that have experienced the steepest gains. In Los Angeles, for example, home prices have trended considerably higher in recent times (up 7.3% over the past year, alone). In 2017, though, the city can expect a tempering of home values to a growth of just 1.7%, according to real estate website Zillow.com.
As for rentals, after double-digit surges, rents in many large metro areas will also see slower growth in 2017, per Zillow. Rents across the country are expected to rise approximately 1.7 percent this year to about $1,429 per month, down from a 6% appreciation reported last year.
Partly to blame for the cool down in rent is a glut in inventory. Builders were very busy over the last few years, but the demand for new units in some hot neighborhoods like Brooklyn, N.Y. is failing short of supply.
As a result, some landlords at higher end luxury apartment buildings in that borough have been striking sweet deals with renters since last summer, The New York Times reports. For example, at 7 DeKalb, a new high rise in Brooklyn, “the landlord is offering two months of free rent with a 14-month lease, and use of the building’s fitness center and other amenities for a year without charge.”
That’s a good reminder to prospective renters everywhere that it can never hurt to negotiate, especially this year!
Have a question for Farnoosh? You can submit your questions via Twitter @Farnoosh, Facebook or email at [email protected] (please note “Mint Blog” in the subject line).
Farnoosh Torabi is America’s leading personal finance authority hooked on helping Americans live their richest, happiest lives. From her early days reporting for Money Magazine to now hosting a primetime series on CNBC and writing monthly for O, The Oprah Magazine, she’s become our favorite go-to money expert and friend.
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Is eating healthy one of your New Year’s Resolutions? Eating healthy in some ways is such an easy thing to do: Eat more vegetables; cut out sugar; and cook at home. Simple, right? But then life happens. You are tired, the kids are hungry, and the pantry is empty. In this moment, it is so easy to give into the lure of fast food and pre-packaged meals. Then there goes all your healthy eating efforts down the drain.
One of the most important strategies to combat this pitfall and stay on track is to keep a well-stocked and organized pantry. If your shelves are stocked with healthy foods that are easily accessible than putting together a nutritious meal is much simpler and stress-free. Check out our 5 tips to organize and stock your pantry to make healthy eating easier on you.
5 Tips for a Well-stocked and Organized Pantry
Tip #1: Assess Your Pantry Contents and Space First pull out everything and group like items together both in terms of type and size, and throw away out of date items and junk food. Measure your space and determine the size of your largest and smallest pantry item then re-arrange shelves to accommodate these sizes.
Tip #2: Create an Essentials List Think about the foods you use to cook with everyday; the snacks you need to keep on hand and the healthy foods you want to incorporate into your diet. Make a master list of all the foods you want to store in your pantry at any given time. Download my pantry essentials list here. Finally, plan for storing all of these items within your space for a well-stocked and organized pantry.
Tip #3: Use Shelf Organizers and Re-usable Containers To store all of these pantry essentials and make them accessible use gravity fed racks, lazy-susans, and shelf risers. Store small items, packets, or awkwardly shaped foods in baskets. Put essential pantry items like flour, sugar, and grains in air-tight canisters.
Tip #4: Put a Label on It Put pretty labels on anything you cannot see in to or on canisters when the contents are not easily identifiable. Use large labels that include cooking instructions with measurements on them to make cooking healthy foods easier.
Tip #5: Make Space for a Grocery List Designate a space to make notes about re-stocking. A chalkboard is a great idea if you have the wall space and want to incorporate a little farmhouse style into your apartment. You could also print off your master pantry essentials list. Place it on a clipboard attached to the back of a cupboard door, and then mark needed items.
A well-stocked and organized pantry is key to keeping your healthy eating New Year’s Resolution and to make it less of a hassle. What are your essential items? Let us know below!
With the New Year approaching, many of us are racking our brains for our next resolutions. Will this be the year I finally do the thing and am happy? Let’s challenge ourselves to set some goals that we can actually meet. Ones that aren’t too ambitious, but are achievable and will bring greater peace to our lives.
Let’s look at 5 New Year’s apartment resolutions we all should be making.
1.) If your belongings aren’t a “heck, yeah,” they’re a “heck, no.”
Minimalistic is all the rage. I bet you have heard variations of this tip. In dating, there’s the rule that if you aren’t SUPER excited about someone and/or they aren’t SUPER excited about you, then what’s the point? Then there’s the KonMari method of asking if your clothes bring you joy (and getting rid of them if they don’t). In both of these, the sentiment remains the same: if things (tangible or otherwise) in your life aren’t wonderful, let them go. In terms of apartment belongings, what are you holding onto? How can you declutter? Is it time to make a move to a new place? What about a new roommate? Ask yourself what feels unnecessary and make changes accordingly.
2.) To reduce clutter, do the tasks that take you under 5 minutes.
I can’t be the only one who doesn’t always make my bed and tends to leave some dishes in the sink. Maybe you are super organized all of the time and don’t need this tip, but if you could minimize the clutter at all in your life, this tip is a simple one. I got it from Gretchen Rubin, a happiness writer. She suggests not putting off tasks that will be quick. For example, if it will take 3 minutes to make your bed in the morning, just do it. If it will take less than 5 minutes to do your dishes before bed, go ahead and get them done. The happiness that comes from these brief tasks outweighs the effort and these small achievements add up!
3.) Create a “zen den” in your space.
I’m crunchy (and admittedly a Buddhist), but my startup recently built a “zen den” during one of our hackathons and it has been cool to see the effect it has on people! A zen den doesn’t need to be an entire room, but it can be a space that is dedicated to slowing down and unplugging for it. We all could use that after the holidays, but even all year round. In my apartment, I’m building a meditation corner with books and trinkets that bring me peace. What will you put in your zen space?
4.) Weigh your food options and experiment to find what works.
There’s a huge upward trend in food delivery. Especially with millennials; more and more value is seen in the ability to buy back time. Weigh different options to bring food into your apartment (and your belly). Is it most practical to go to the grocery store every week and cook your own meals? Should you invest in grocery delivery services like Instacart? Or, have you looked into meal prep services like Blue Apron? Perhaps eating traditional takeout is the lifestyle for you right now. Make an intention to try different methods to see what works for you. I personally like a mix of methods and my crockpot is my best friend.
5.) Improve the aesthetic of one space in your home.
You don’t have to be a Pinterest expert or have a ton of money to spruce up the look of your apartment or house. Feng Shui is a type of interior design that is practiced to bring balance, restoration, and joy to your living space. Some fun examples are: you should be able to see the door from where you sleep and light should fall at the end of your bed from a nearby window. Even simple touches like adding fairy lights to a wall in your place can change the feel of it all.
These are a few resolutions to bring more peace and happiness into our lives this year. Isn’t that what we’re all looking for? What resolutions are you making this year?
Save more, spend smarter, and make your money go further
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Large purchases don’t come cheap. A TV, speakers, and the miles of cables and cords you need to hook everything up can run you a decent amount of money — but if you use your credit card to pay for them, they can end up costing you even more than you bargained for in the long run. Why? Interest! High interest rates are a challenge most of us face, but one you can overcome with a little know-how and proper financial planning.
Most consumers know interest as that extra fee that gets charged to their account when they don’t pay off their credit card balance every month. Or, perhaps you’ve taken out a home loan, and you pay an interest charge on top of paying back the principal. Interest charges are part of how financial and lending institutions make money. But there are ways for consumers to save money despite these common charges. And the first step to keeping more money in your bank account is by understanding the concept of interest a little better.
Keep reading for a full overview or use the navigation links below to skip directly to a relevant section.
What is Interest?
At its most basic level, interest is the percentage of either a deposit or a loan balance, that is paid to the financial institution (or bank account owner) for the privilege of financing or using their money.
Types of Interest Rates
There is more than one kind of interest rate, but we’ll just talk about the two you’ll run into with revolving credit and common loans like mortgages: fixed interest rates and variable interest rates.
Fixed Interest Rate
A fixed interest rate is exactly what it sounds like: an unchanging rate tied to a line of credit or loan that has to be paid alongside the principal amount. Fixed rates are common because it’s a transparent agreement between the lender and borrower. The benefit of fixed interest is that it’s simple to calculate and easy to comprehend.
Variable Interest Rate
Some interest rates change and for this reason, they’re called variable interest rates. Variable interest rates are usually tied to the changes happening on the broader scale of interest rates, aka the prime interest rates. In some cases, consumers with loans can benefit from a variable interest rate if the prime interest rate decreases. In turn, the consumer pays less in interest charges. On the other side of that coin, the prime interest rate might also rise, which leads to the consumer paying more in interest charges.
What is Revolving Credit Card Debt?
When you use your credit card, you’re borrowing money from the bank with the understanding that you will pay it back in a timely manner. If you purchase an item for $100 on your card with a 10% interest rate, failing to pay off your balance on time means you owe that $100 plus the 10%. At the end of the day, that item really cost you $110.
If you carry balances from month to month, that debt can really stack up and eat away at your carefully planned budget. It can be a tricky subject to grasp, but if you’re having difficulties rest assured you’re not alone. Thankfully, there’s a light at the end of the tunnel. There are two ways to approach paying off your debt: the snowball method and the avalanche method.
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What is the Avalanche Method?
We all have that one debt that seems insurmountable. Whether you’re paying off student loans, a vehicle or a home, high interest rates can make debt feel like a permanent part of your budget. If tackling a big challenge head-on is your style, the avalanche method may work for you.
With this method, you identify the debt with the highest interest rate and put all of your allocated funds toward paying it off as soon as possible. This is the debt that is costing you more and more as time goes on, and it may take quite some time to fully pay it off — but once that debt is off your plate, you suddenly have a lot more money to work with. You can then disperse those funds as you see fit to pay off your smaller debts.
What is the Snowball Method?
The avalanche method is most likely the method that will cost you less interest in the long run. That said, the snowball method is considered a great choice for those who need help staying motivated.
With this method, you start by repaying your smallest amount of debt first. Once that’s taken care of, you can apply that freed up money toward the next largest debt, and so on. This is a great way to pay off your debt if you thrive on short-term accomplishments. It feels great to pay off one source of debt in its entirety, and those positive feelings can spur you to take on the next challenge.
What Else Should I Know about Interest?
Debt is nobody’s favorite topic, but it can be therapeutic to talk about. Mint’s very own Ashwin Khurana hit the streets of Indianapolis, IN, to ask people about their relationship with their credit cards.
Besides watching the videos on interest, Mint has tons of resources you can check out to bulk up your financial knowledge. You can learn more about compound interest and how to earn it to refinancing your mortgage.
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Every year, I write a post detailing my goals for the next year and reviewing how I did with the previous year’s goals. I have written articles over the last three years that included some huge goals. I achieved many of these goals, and many of them I did not. I actually am just fine not accomplishing all of my goals because that keeps me working hard throughout the year. The point of a goal is not to accomplish it but to get as much out of yourself as possible. If you make your goals too easy to accomplish, they do not do you much good. I made a goal to flip 30 houses in 2017, which I did not reach, but I came close. That does not mean I am going to make my goal smaller this year; in fact I will make it even bigger!
My goal articles for other years
Why are goals important to our success?
When I was younger, I thought I could do everything myself without any help and without any goals or direction. I was wrong, and I was not very successful for many years. As soon as I started to set goals, I started to see success, and I felt better about myself and my life. Goals give you a direction, a path to follow, and instructions on what success is. The most important part of setting goals is you tell yourself what you actually want in life. If you have no idea what you want, it will be impossible to get it.
When you set goals, you need to be as specific as possible. You have to set goals that can be measured as well. A goal to learn about real estate is not a real goal. A real goal would be: I will buy a rental property in 2018. An even better goal would be: I will buy a rental property that cash flows $300 per month by October 1st, 2018. The more specific, the better. For more information on setting goals, check out the article below.
One problem with setting goals or New Years’ resolutions is we forget about them about a month after we set them. One reason I love this blog is that it holds me accountable. Thousands of people read my goals and see how well I did. This keeps me on my toes and motivates me to review my goals often. If you are setting goals, make sure you have a way or a partner to keep you on track (this assumes you do not have a blog).
What were my goals in 2017?
In 2017, I made some really big goals. I accomplished some of these, others I did not, and some I will accomplish in the beginning of 2018. 2017 was a great year, but there is always room for improvement. Part of the fun in life and business is figuring out better ways to do things and seeing those new practices pay off. Here is what I wanted to accomplish in 2017:
I wanted to buy a 50,000-square-foot or larger commercial building.
I wanted to flip 30 houses, which would have been 12 more than what I flipped in 2016.
I wanted to sell 200 houses as a real estate team. This has been my goal for many years, but I keep coming up short.
I wanted to publish 2 new books from my blog and hire more help for the website.
I do not discuss all of my goals publicly, but I did mention the possibility of buying a Lamborghini Countach or Aston Martin in 2017. I did not make it a goal and really did a poor job with this last year!
How did I do with my 2017 goals?
On the surface, it may look like I failed at achieving many of my goals, but I am really happy with how the year went. You cannot get upset or mad when you do not accomplish goals. If you accomplish everything, your goals were not big enough.
I did not buy a 50,000-square-foot building. However, I had one under contract that fell apart due to circumstances beyond my control. I also have another 70,000-square-foot building that is under contract and set to close by the end of January.
I sold 26 flips and bought 27 flips. I was really close to 30 but did not quite get there. I thought I would sell 30 flips with a few months to go, but delays on multiple projects set me back, which always seems to happen.
We sold 96 houses as a real estate team. I was not close to selling 200, but our average price increased quite a bit. I have thought about re-wording my goals to dollar volume instead of a number of sales.
I did publish two new books and hired multiple new people to help with the blog. Most of those people did not work out, but I have found a couple of great resources.
I also accomplished some things this last year that I was not expecting and were not goals.
I bought a 1998 Lotus Esprit V8 twin-turbo. I was not planning to buy this car, but I have always loved the Esprit. One came up for sale on eBay that was a great deal and the perfect color.
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I bought four rental properties in 2017! I was not planning to buy any—except for one large property—but I found a niche I like in the area. I bought four commercial properties that are all rented out and cash flowing better than residential properties in the area.
I bought a small commercial shop to store materials for my flips and rentals as well as have a place to store a couple of cars.
I ended up buying 31 properties in 2017, which is an awesome accomplishment for me. I was hoping to buy 30 flips, but I am really excited that I was able to buy rentals as well. For 2018, I plan to change up my goals a little bit.
What are my goals for 2018 in real estate?
I have been thinking about and working on my goals for 2018. I try to spend quality time on them and not just throw them together. The better my goals are, the more successful and happier I will be. Here is what I have planned for this year:
I want to make $100,000 per month flipping houses. My goal last year was to flip 30 houses, but I could have done that and made no money at all…or even lost money. That is not a very good goal. I averaged about $32,000 in profit on each flip last year, which means if I flip 3 houses per month, I will come close to making $100,000 each month. With this goal, I have to think about profit margins and not just how many houses I am buying. I have three houses set to close in January of 2018 and many more listed or ready to list the start of the year. I also have 3 flips under contract to buy. You can see all the properties and numbers here: https://investfourmore.com/flips/
I want to add $6,000 per month in passive income. Instead of creating a number of properties I want to buy, I decided to create a passive-income number since I think that is more important. With the large building I am buying in January, I should create about half of that number. I figure I would need to buy about 6 smaller properties to get the total to $6,000 per month. This is not in line with my plan to buy 100 properties, but I do still have that major goal I want to accomplish.
I want to start my own real estate office. Part of my plan to buy a large building is to start a new office in that building. I never wanted to start an office before because many of my REO and HUD accounts were tied to my current office. There was no guarantee that those accounts would move with me if I moved. I have decided I like flipping much more than being an REO agent, which works out great since there are almost no foreclosures in Colorado. By starting my own office, I will save a ton of money on expenses and have my own space I can do whatever I want with. I will use this as my real estate team goal this year instead of setting a sales number goal.
I will buy an Aston Martin V8 or Lamborghini Countach this year. In fact, I am already working on this goal, and it is close to being accomplished.
I have more personal goals this year and goals for this blog as well. However, I am basing the blog goals around income so it is more measurable. I have decided not to disclose that goal publicly, but if you really want to know, you can email me. [email protected] If you think you have ideas for the blog, you are welcome to let me know as well. However, I get tons of emails from people who want to do guest blogs or help me with SEO. That is not what I am looking for.
These goals are more specific than they have been in the past, which should help me know exactly what I need to do. I can also break down these goals into smaller tasks to figure out exactly how to accomplish them. With the flipping goal, I know I need to sell three flips per month with a profit margin of $33,333.
Conclusion
I really like writing these posts because it makes me set goals and really think about what I want to do each year. It is also good to have both longer- and shorter-term goals. It might be smart for me to rethink my plan to buy 100 properties into a plan to create a certain amount of passive income. Buying the large commercial property will be like buying 6 really good residential rentals as far as the cash flow that will be generated. I also want to make sure I have these goals at the front of my mind and am constantly thinking of them. It does no good to set goals and never look at them again until December 31st.
One would think that short-term goals are pretty easy to accomplish. Oh, really?
Think again. Short-term goals can be easily put off for a plethora of reasons. Research suggests this as 91% of people fail on their New Years’ resolutions.
When it comes down to getting short-term goals done, including short-term financial goals, one must implement some strategies to stay on task and on schedule.
Let’s start out by discussing some strategies for achieving important short-term goals and then move onto some short-term financial goals that are worth your time and effort.
Grab your notepad, you’re going need it!
What’s the Difference Between Short-Term and Long-Term Goals?
Goals can have different timelines attached to them. For example, a short-term goal may take months or even years to achieve, whereas a long-term goal may take 5-10 years or more to reach. It’s important to be realistic about how much time you need and plan accordingly in order to make sure you can stay on track with your objectives.
Additionally, breaking down each goal into smaller steps can help make the goals feel more achievable. It may also be helpful to track your progress and celebrate successes along the way! More on that in a sec.,,
How to Achieve Important Short-Term Goals
A short-term goal is a goal that shouldn’t take you long to complete. Generally, I would define a short-term goal as a goal that takes roughly less than a year to complete. Many times, these goals only take a month or a few weeks. They could only take a day or two.
Short-term goals usually have a very clear path toward their completion. You know exactly how you’ll accomplish your goal – every step you’ll need to take. You can break the goal down into smaller pieces and then track your progress along the way.
It’s crucial that each of your short-term goals follow the “SMART” goal format.
What Are Smart Goals?
Setting goals can be daunting, but with the SMART framework, you can turn your aspirations into achievable objectives that will help you make meaningful progress towards your dreams! SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound.
Think of SMART as your goal-setting BFF! When you have a SMART goal in mind, you know exactly what you want to achieve, how you will measure your progress, and when you will achieve it. Whether you want to improve your finances, health, or personal growth, SMART goals can help you stay focused, motivated, and accountable.
SMART Goals
Stands For:
Specific
Clear and well-defined objectives
Measurable
Goals that have quantifiable targets
Achievable
Goals that are realistic and feasible
Relevant
Objectives that align with your values
Time-bound
Goals with specific deadlines
Unfortunately, even when you know exactly how you’ll accomplish your goal, there are a number of circumstances that can get in the way. Let’s explore how to push through these difficulties and find success.
1. Find your daily energy peak and schedule accordingly.
Unless you’re like The Rock and have seemingly unending energy and strength, your productivity will rise and fall during the course of a day. I know, you didn’t like me telling you that, but someone had to, right?
Short-term goals are best made progress on during the times of day you have high to moderate energy. If you’re saving these goals for the times of day when you’re in a slump, let’s face it: you’re probably not going to get ‘er done. Save the low energy times for leisurely activities.
Okay, so how do you find your daily energy peak? Here’s what I recommend . . . .
Set a recurring alarm when you first wake up for every 30 minutes. Every time the alarm goes off, rate your energy level on a scale of 0 (being no energy) to 10 (being high energy) in a notepad or on graph paper. You can do this for one day or you can do it for a week and average out the results.
This will allow you to see how your energy level changes throughout the day and will allow you to make better decisions regarding how you allocate your time and tasks.
I would recommend working on your short-term goals during the times of day that your energy level is a “5” or higher.
I remember when I first started this blog I was a night owl and had the most energy as the sun was going down. Today, I find mornings work better for me. The lesson? Make sure you adjust your tasks to your changing energy levels. Who knows, you might make a radical shift like me over time.
2. Work on one short-term goal at a time.
I have no idea why multitasking is so praised in our culture. Multitasking, in my opinion, slows people down and produces poor results. It’s much better to work on one short-term goal at a time.
Besides, these are short-term goals – not long-term ones. You’ll be able to get them done pretty quickly and move on to other tasks in short order.
Of your short-term financial goals, it might be worthwhile to work on the quickest short-term goals first – the ones that take the least amount of time. This will give you a few quick wins, which should motivate you to press on.
3. Eliminate distractions soldier!
During my time in the Army National Guard, I learned how to focus. In battle, there’s nothing worse than not keeping your head in the game. When enemies are nearby, it’s critical that you stay on task and don’t daydream. There are plenty of distractions in battle – some of which are set by the enemy – and they need to be avoided.
When you’re working on your short-term goals – including financial goals – you should eliminate any distractions.
When you’re working at home, there are plenty of distractions. If you have kids, you know what I mean. Now, kids are a great distraction, but you should be very careful to make sure they don’t pull you away from your other obligations.
For example, let’s say you have a monthly budget meeting with your spouse. Instead of having the meeting when the kids are running around throwing toys at you, it’s probably best to wait until they go to bed.
Other potential distractions include technology. Yes, while technology can help you accomplish your financial goals – like analyzing your investments with Betterment or Personal Capital – it can also send you alerts that aren’t relevant to the task at hand (like text notifications from your second great aunt Martha).
How do you eliminate technological distractions? Well, if you have Apple devices, it’s pretty easy to do so. On your iPhone, turn on Do Not Disturb. You can do the same thing on your Mac. This way, you can focus in peace and get some work done!
4. Dig deep to find your motivation.
Just like when you’re working on long-term goals, you need to dig deep to find your motivation for short-term goals.
Why do you want to start a budget, for example? If you don’t have a good enough reason or reasons, trust me, the number-crunching will get old fast and you’ll probably give up before you develop a working budget.
Imagine the benefits, for example, of creating a working budget. How will it improve your relationship with your spouse? How will it keep you on track with your long-term financial goals? You’d be surprised by how many motivations you can find for even the most seemingly mundane short-term financial goals.
Important Short-Term Financial Goals
Alright, you’re all geared up. You have some strategies for achieving your short-term financial goals, but which goals are worth your while? That’s what we’re going to talk about next, partner.
1. Create a budget.
Surprise! Just kidding. You probably guessed this one.
The truth is that a working budget is the cornerstone of any good financial plan. A proactive budget not only tells you what you’ve spent, but it tells you what you should and should not spend – that’s huge.
Over time, by working your budget, you’ll find ways to cut your expenses and discover new motivations for raising your income.
2. Create a system to pay your bills on time.
Thanks to technology, there are all kinds of ways to pay your bills. You might pay through your bank’s online bill-pay feature, you might pay through the merchants’ websites, you might pay using your debit or credit card, you might pay with checks – or you might pay with your smartphone!
Chances are, you’re using a variety of methods to pay your bills. But do you have a solid system in place? How will you know if your credit card expired and a merchant can’t pull money through auto-pay? Are you trusting the banks and merchants to let you know when your card is about to expire?
Sure, that might work. But perhaps it would be better to put everything into a spreadsheet so you can keep track of all of your bills and how they’re paid. You can also create reminders to pay in your favorite app!
3. Get appropriate insurance policies for your family.
Do you have life insurance? Disability insurance? Umbrella insurance? How about renters insurance? These policies are commonly overlooked.
Find the best insurance and make sure you’re covered.
Short-Term Goal Examples
If you’re looking for real life short-term goal examples, you’re in luck! I polled some fans on the Good Financial Cents Facebook page and here’s some of the best ones:
Joseph Hogue from PeerFinance101.com shares his goals:
Launch 4 short-format investing books as series in December
Publish three posts per week to each blog
Financial goals
Rebalance my portfolio allocation heading into my 40s. Still a year off (and I don’t generally try timing) but after almost 7 years of a bull market, will rebalance a year earlier and shift to new allocation
Buy and renovate another rental property (in Medellin, Colombia)
Life goals
Use social media more for personal connections and less for business (I realize the irony as I post this under my blog account)
reconnect with a couple of high school friends
start a hobby that isn’t related to personal finance or crowd-funding
Kate Dore from Cashville Skyline offers:
Reach $200K net worth by the end of 2025.
Renovate my basement to rent on Airbnb.
Earn $10K side income before next year’s FinCon.
Lose 20 pounds 🙂
Jacob Wade from iHeartBudgets.com shares his ambitious short-term goals:
Finish Kitchen Remodel by end of 2022
Pay Off Student Loans by end of 2022
Launch online course for blog in March/April 2023
MAX out Roth IRA for my wife and I in 2023
Remodel Master bath in 2023
Build deck/patio in backyard in spring 2023
Build raised bed gardens in side yard in April 2023
Get my butt into shape! Start in T-25 workout plan again
Those are some good examples of short-term goals. Here are some other examples you can use to kickstart your own short-term goal ideas:
Financial Goal
Specific
Measurable
Achievable
Relevant
Time-bound
Emergency fund
Save $10,000 in a high-yield savings account
Yes
Yes
Yes
By age 30
Retirement savings
Contribute at least 10% of your annual income to a 401(k) or IRA account, aim for $100,000 in retirement savings
Yes
Yes
Yes
By age 30
High-interest debt
Pay off $5,000 of credit card debt
Yes
Yes
Yes
By age 30
Credit score
Improve credit score to 750 or higher
Yes
Yes
Yes
By age 30
Budgeting
Create a monthly budget, track spending, and save $5,000
Yes
Yes
Yes
By age 30
Education and career
Invest in education or career development
Yes
Yes
Yes
By age 30
Investing
Invest $5,000 in stocks, mutual funds, or other investments
Yes
Yes
Yes
By age 30
Home down payment
Save $20,000 for a down payment on a home
Yes
Yes
Yes
By age 30
Estate plan
Create a will and estate plan
Yes
Yes
Yes
By age 30
Living below your means
Reduce expenses by 10%, increase savings rate by 5%
Yes
Yes
Yes
By age 30
How I Keep Track of Short-Term Goals
My short-term goals fall into two categories: Quarterly (90 day goals) and weekly goals. Each quarter I list out my goals and then make sure my weekly goals stay on point to achieving those goals.
One easy way I’ve recently implemented of staying on point is creating my weekly goals Sunday night. I’l create a note on my iPhone, but that’s only the half of it.
I then take a picture (screenshot) of my weekly goals and make that the lock screen on my phone. That way every time I turn my phone on I see the top 4-5 goals I need to accomplish that week. Here’s how it looks on my phone:
You’ll also notice I list my daily reminders of my Success Habits I do each day.
These include doing The Love Habits with my wife, writing in my Five Minute Journal, knocking out 50 push-ups, praying, and completing my Crush Your Day PDF (from my 10x Goals Accelerator course) before I go to bed.
I’ve taken achieving my short-term goals to the next level because of this powerful combination.
The Bottom Line – Short-Term Goal Examples
So, there you have it! Setting short-term goals is an excellent way to achieve your long-term vision, improve your skills, and build momentum towards success.
By following the SMART framework, you can turn your aspirations into actionable steps that will help you make meaningful progress towards your dreams. Remember, short-term goals don’t have to be boring!
Whether you’re learning a new skill, connecting with new people, or saving up for a fun adventure, short-term goals can be exciting and fulfilling.
So, what are you waiting for? Grab a pen and paper and start setting some short-term goals today!
FAQs – Short-Term Goals
Why are short-term goals important?
Short-term goals are essential for several reasons. They provide a clear direction and purpose, help you break down larger goals into smaller, manageable steps, build confidence and self-efficacy, and improve your overall productivity and performance.
How do short-term goals relate to long-term goals?
Short-term goals are an essential component of achieving long-term goals. They help you break down larger objectives into smaller, more manageable steps and build momentum towards achieving your long-term vision. By setting and achieving short-term goals, you can stay motivated and focused, improve your skills and habits, and make progress towards your ultimate goals.
How do you prioritize short-term goals?
Prioritizing short-term goals depends on your personal preferences, needs, and circumstances. Consider which goals are most urgent, important, or aligned with your long-term vision. Prioritizing goals helps you focus your time, energy, and resources on the most critical objectives and avoid getting overwhelmed or distracted.
How many short-term goals should you have at once?
The number of short-term goals you should have at once depends on your capacity and workload. It’s generally best to focus on a few goals at a time to avoid getting overwhelmed or losing focus. Prioritize your goals based on their urgency, importance, and relevance to your long-term vision.
Last week, a reader named Matt sent me an article from Chicago Business about how bloggers are quitting what they call a demanding task with few rewards. It’s a fascinating story that explores some of the problems with blogging as a money-making enterprise.
The article suggests several reasons that blogs and bloggers fail:
Blogging isn’t as lucrative as people imagine.
Blogging takes too much time.
Bloggers aren’t willing to share their personal lives.
Bloggers run out of material.
It’s easier to reach people via Facebook or Twitter.
Leaving aside Twitter and Facebook, all of these are valid concerns.
As the year began, you resolved to turbocharge your savings. But now those goals seem to be fading. Not to worry. Here are some tips that will get you back on track.
In order to find success, you first have to define what that looks like for you. Many great achievements begin as far-off goals, that seem impossible until itâs done. Though you may not absolutely need a goal to succeed, research still shows that those who set goals are 10 times more successful than those without
The post How to Set Goals and Achieve Them: Mastering Your Savings Strategy appeared first on MintLife Blog.
Have you maxed out your Roth IRA for the 2013 tax year? If at all possible, you should make the maximum contribution for 2013 and start preparing to do so in 2014. Why?