Are you a working mom who also is saving for your kid’s college, paying your mortgage, saving for retirement, balancing your finances, and still trying to make dinner? You are not alone. We have some tips for you on how to handle some financial planning and an amazing tool, Fortunately, to do so with.
If you’re looking for better tips on managing your money in order to hit your short-term and long-term goals, this guide is for you. Whether saving for a new car, starting a business, or even sending your kids to college, you need to know where to start.
What are Financial Goals?
Your financial goals should be in line with what you need or want to accomplish in your life in order to consider yourself financially successful. These goals may be related to how much money you want to make, how much money you want to save, or how much debt you want to be in. Setting goals will help you know where you’re headed and give you a sense of accomplishment. After you set your goals, it’s time to create a plan for how you’re going to achieve them and stick to it. If you need help with your planning you can try searching online for “financial planning near me” to help you find an advisor who will work with you to help you reach your financial goals.
Setting Financial Goals:
Setting your financial goals is an essential part of financial planning. There are short-term and long-term versions of these objectives. Short-term goals can be achieved in the next few months, while long-term goals are those that will take more than a year to complete. It is important to set goals that are attainable and realistic based on your income.
For example, a short-term goal may be saving $500 to replace a broken window or making a budget for the upcoming month. Long-term goals should be broken down into smaller, more manageable milestones that can be achieved over time. For example, if you want to retire five years earlier than you’re currently planning for, set smaller milestones, such as investing an additional $100 per month for the next ten years.
How to Budget?
Many people struggle with budgeting. There are many ways to go about it, but the most important thing is to make sure you’re investing enough each month to hit your goals. You should set up a budget to see how much you need to set aside each month and how much you have left over at the end of the month to spend. If you’re struggling with budgeting, try using apps like Mint, or You Need A Budget.
How to Invest?
Investing your money, rather than just saving, is the best way to hit your goals and see your money grow. Investing in stocks is a great way to own part of a growing company. Buying a few exchange traded funds (ETFs) is even better as doing so allows you to own a small part of hundreds of different companies which is less risky but still provides plenty of growth.
How to Save?
Saving money takes a little bit of planning. This plan should include how much you will spend each month on bills, how much you will save, and how much you will invest. Once you are simply aware of these numbers, sticking to your plan will be much easier. If you need help knowing how much to set aside each month, simply plug your income and goals into Fortunately so they can do the math for you.
Why is financial planning important?
Creating a financial plan is essential because saving for your goals is really difficult without the help of investments helping your money grow over time. One of the most common goals that parents feel overwhelmed about is saving for their child’s education.
If you’re planning on contributing to your child’s education, it’s smart to invest small amounts over a long period of time – similar to saving for retirement. It is essential to start investing for your child’s education early on. Options include putting money in a savings account, investing in mutual funds, or even a Roth IRA. You can even open a joint savings account if you are a couple or family.
You might also consider putting money into a tax-free education fund like a 529. The best thing about investing in your child’s future is that it can be done while they are still young so the money you contribute is minimal but has time to grow into what you need.
What Can Fortunately Do for You?
Fortunately gives you a comprehensive overview of your finances. You’ll be able to see everything from your income and expenses to how much money you should be putting aside to hit your short-term and long-term goals.With Fortunately, you can:
- Create an automated financial plan in less than 5 minutes.
- See an ongoing analysis of your finances to show you how to save today – and, just as importantly, what you can think about later.
- Get continuous guidance on how to save and invest for your home, retirement, and college goals with Fortunately.
- Better understand the trade-offs of your financial decisions with an interactive and actionable financial plan.
Fortunately is $5/month after a 30-day free trial.
Having a financial plan is an important part of taking control of your finances, hitting your life goals, and living life without financial stress. Try out Fortunately by signing up for a free trial month to see how this great financial planning app can help you achieve your goals!
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