Financial Independence: When you were young, your major goals were turning 18 and getting into a good college. Goal setting doesn’t stop at college, however. In fact, as an adult, you should be constantly setting a variety of new and exciting goals, including financial ones.
Setting financial goals helps you stay on top of your money and keeps you financially stable. It also helps you feel more accomplished and makes managing your money a lot more interesting.
Are you wondering what kind of financial goals you should be setting? Read on for some great financial goal examples!
1. Purchase Your Own Home: Financial Independence
The first major financial goal a lot of people set for themselves is purchasing their own home. It doesn’t have to be a massive single-family home, but even a small cottage or condo will put you on track for financial success.
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A lot goes into buying a home, including saving up for a down payment and qualifying for a mortgage. You’ll have to show proof of income, which can be difficult for people who work independently. In those cases, you can make use of a check stub maker for proof of income.
Once you have the money saved up for a down payment, start working with a lender to get pre-approved for a loan before you start shopping. It’ll give you an edge in hot housing markets.
2. Improve Your Credit Score
If you want to achieve financial independence, then you need to make sure that your credit score is in good shape.
Start by pulling your current credit report and checking to see if any of your credit card companies offer a free credit score. This will give you a good baseline to start from.
From there, you’ll want to tackle any delinquent debt first. Make sure that you are paying your bills on time every month and that you are paying more than the minimum amount. Aim to reduce your overall credit utilization to less than 30 percent.
3. Have an Emergency Fund: Financial Independence
We all like to think that our jobs are secure, but surprises can happen. The recession in the early aughts and during COVID-19 prove that job stability is not always assured.
That’s why it’s super important to have at least three months’ income saved up for emergencies, and some experts recommend having up to six months saved up. This money must be liquid and easily accessible when you have an emergency.
Loved These Financial Goal Examples?
These financial goal examples are just a few of the many financial goals you could be setting for yourself. Consider these a jumping-off point to a lifelong romance with personal finance. With a little bit of work, these goals will be in the past and you’ll have moved on to bigger and even more exciting goals!
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