Income growth: Inadequate income gives rise to financial worries while its sufficiency is a source for financial freedom. Therefore, income growth should be top the list when it comes to drawing the financial goals for the year. Every individual should try that they achieve income growth, be it through using own’s talents or putting money into avenues that will generate an additional stream of income.
Saving versus investing: If saving more is the agenda then it cannot be counted as one complete goal. Savings not invested can be counterproductive as the evils of inflation will depreciate the value of savings at the end of one year and there is nothing much accomplished in terms of increasing the real net worth.
Sensible spending: Ask questions - What, why and how - before spending on anything that is not routine. These questions can help one to become more aware of their spending habits. But, at the same time, one must not forget to reward themselves on accomplishments of steering away from unwanted spending.
Differentiate between liabilities and assets: If a debt is taken to buy a car or go on a vacation abroad, then it is categorized as bad debt as the outcome is a liability. On the other hand, if a loan is borrowed to build a home or land or a business venture then it is a good debt as it will add up as assets in future.
Retirement planning: If one has not already started investing towards retirement then it’s high time to do so. It’s never too early and never too late to start planning for this goal. Starting to invest for retirement planning right away will ensure that one has some backup in place, which is better than ending up with nothing during the grey years.