So you’ve managed to pay off your debt. Congratulations! It’s not an easy thing to do, and requires a lot of discipline and hard work. Once you have your debt paid off, you might be wondering what your next financial goal should be. Here are some ideas to get you started.
Build an Emergency Fund
Emergencies can happen at any time and for any reason. They aren’t planned and are often quite expensive when they occur. Because of this, it’s a smart move to build up an emergency fund. If you don’t have one, a personal loan is an option worth considering. While a personal loan can benefit those who really need it, there are plenty of drawbacks. If you can afford it, it’s better to use your own funds. A popular recommendation is to have enough funds saved away to cover six months of expenses in the event of an emergency.
Save for Retirement
It’s never too early to start saving for retirement. Figuring out how much you’ll need to retire can be a little tough, but don’t let that stop you from getting started. There are lots of different things you can do to boost your retirement savings. Many people choose to invest their money in stocks, bonds, or real estate to grow it. High yield savings accounts are another viable option. You could contribute funds to a 401k, IRA, Roth IRA, or a combination of the above. The more you save, and the earlier you save it, the more you can benefit from compounding interest rates, and the more you’ll have to fund your retirement.
Gain Financial Freedom
Obtaining financial freedom or independence means that you have enough money to cover your typical costs and expenses without having to rely on a formal form of employment for income. It’s sometimes referred to as early retirement. It’s not an easy thing to achieve, so setting financial goals to help you obtain it is critical to success. There are some good financial habits you should develop to help you gain financial freedom as well. Work on developing them and achieving your carefully planned goals and you’ll be that much closer to financial freedom.
Financial goals are important tools that help you move forward financially. They give you a direction to go in. Consider building up your emergency fund, boosting your retirement savings, and gaining financial freedom. These goals can help protect you financially both now and in the future.
Need help figuring out what your financial goals should be? Meet with Mike to make a plan!
