It’s the first fabulous Friday of 2018, and I couldn’t be more excited to kick off another Financial Fridays blog post!
So, friend, we’ve got a brand new year ahead of us! What would you like your money situation to look like this time next year? The great news is, we’ve got 12 entire months to get there, but we need to make a plan. So here are 3 wise money goals to give you some ideas and motivation for setting your own goals!
Goal 1: Ditch the Debt. For Good.
Do you have any credit card debt? Student loans? Personal loans? Car loans? All of these count as, you’ve guessed it, debt. As single parents, whether or not we receive child support, the vast majority of the cost of raising a child is up to us. The #1 thing you can do for yourself and your children is to RID yourself of debt. Now, before you become overwhelmed, don’t! Grab a sheet of paper right now. I want you to do the following:
- List all of your debts smallest to largest
- Determine how much money per month you can throw at the smallest debt until it is eliminated
- Based on how much you can throw at it each month, write down beside each debt your GOAL DATE of when that debt will be paid off
Goal 2: Setup a Rainy Day Fund
Another goal, whether or not you have debt, would be to setup a rainy day fund, or a basic savings account. According to many experts such as Dave Ramsey, it’s good to start off with a beginner savings account of $1,000 before you pay off any debt. If you have no debt (except maybe your mortgage) make it a goal to set aside some money each month until you can save anywhere from 3-6 months of living expenses. Follow these simple steps to setup your rainy day fund:
- Review your bank accounts and see if you have a savings account already setup
- Setup a savings account and if you have less than $1,000, put extra money you have each paycheck until you reach $1,000
- Build your savings account to 3-6 months of living expenses.
Goal 3: Create a Budget
I promise this is the easiest step, but unfortunately the most neglected. However, you will be so much less stressed if you setup a budget! It is wonderful to know at the beginning of the month how much you have planned to spend on groceries, entertainment, household goods and more. You are in charge of your money when you have a budget. It’s as simple as that.
I am a huge fan of an online tool called EveryDollar that makes budgeting easy. I am not an affiliate, just love to share about the tool because I am a user and I find it much simpler to use than its competitors in the marketplace. The phone app allows me to pull up my budget anywhere and see what I have planned to spend (and what I’ve already spent) in any category. Visit EveryDollar.com to learn more!
What money goals will you set for 2018?