Know your financial goals from "summary" of The Dumb Things Smart People Do with Their Money by Jill Schlesinger
Understanding your financial goals is crucial to making smart decisions with your money. It's not enough to just vaguely think about wanting to "save more" or "retire comfortably." You need to define specific goals that are meaningful to you personally. This could be anything from buying a house, traveling the world, sending your kids to college, or retiring early. Knowing exactly what you are working towards will help you stay motivated and focused on your financial journey. When setting your financial goals, it's important to make them SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. This means you need to be clear about exactly what you want to achieve, have a way to track your progress, ensure that your goals are realistic, make sure they align with your values and priorities, and set a deadline for when you want to reach them. By following these guidelines, you will have a much better chance of actually achieving your financial goals. Having clearly defined financial goals can also help you make better decisions about how to manage your money. For example, if your goal is to buy a house in five years, you will know that you need to start saving a certain amount each month to reach that goal. This can help you prioritize your spending and avoid wasting money on things that don't align with your goals. It can also give you a sense of control and direction over your finances, rather than feeling like you are just drifting aimlessly. In addition to setting specific financial goals, it's also important to regularly review and adjust them as needed. Life circumstances can change, and your goals may need to be updated accordingly. By staying flexible and responsive to changes in your situation, you can ensure that your financial goals remain relevant and achievable. This ongoing process of reflection and adjustment will help you stay on track and make progress towards your ultimate financial objectives.
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