Setting goals: Why financial planning matters

The most important part of becoming financially independent is your mindset. Until you change the way you view your personal finance, you will not make any strides in the right direction. The most important change that you need to make when you begin on the path towards financial stability is changing your mindset to be long term oriented. Make goals for yourself and realize that accomplishing those goals will only benefit you. Start planning for a better future today.
Things take time
Patience is a virtue, and finance is not the exception. You need to get the idea out of your head that you will get rich quick. The chances of that happening are very slim. Everyone can be financially stable and even prosperous, but only if you are willing to put in the work. Unless you have a lot of cash just sitting around in your house, saving is going to take time. You need to internalize that. Right now, working at your current job, or not being able to travel might make you upset and frustrated, which is why you need to understand that if you stay within your budget and continue to save and invest, eventually you won’t have to work that job anymore. Envision the future that you want for yourself, and be prepared to work hard and to be patient for that future to arrive.
Emergencies can be costly
If you are like most people, you probably live pay check to pay check, focusing only on the things you want now and not at all planning for the future. If all of a sudden you are hit with an emergency that requires you to pay a large amount of money, well… you are straight out of luck. You most likely will need to borrow that money and put yourself in debt. Instead, if you plan for the future and create a rainy day fund, you will be able to pay off, or at least soften the blow of these emergencies. You need to be prepared for anything that the future may throw at you.
Goals help you stay motivated
Sometimes, becoming debt free or saving up enough money can take quite a bit of time. In order to keep yourself motivated and to make yourself feel like you are moving in the right direction, create goals for yourself so that you can track your accomplishments. Creating long term goals helps you envision your future, but creating short term goals helps you reach it without losing hope. Create monthly or weekly goals for how much you want to save, or how much you want to pay off your debt, and when you accomplish those goals you will feel one step closer to the end point. If that isn’t enough motivation, create burdens and incentives for yourself. Treat yourself when you reach your goals, and create a punishment if you don’t, such as donating a certain amount of money, or canceling your Netflix. This way you will make sure that you are staying on top of your goals.
Envisioning your future
Unfortunately, there is no get rich quick strategy, but if you start saving and investing now, you will see the rewards pay off in a couple years. Just continue to envision a better future, and work towards that goal. It will feel all the sweeter when you reach it and you know how hard you worked to be there.

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