Setting Realistic Financial Goals to Improve Your Personal Finances

 

To set realistic financial goals, it's important to establish a clear understanding of your current financial situation. The challenge lies in creating and sticking to a budget, especially for those who are new to the process.

Below, a panel of Forbes Finance Council members shares some practical tips and strategies for doing just that:

1. Use Earned Wage Access

The first step to budgeting is having money when your bills are due. That means having access to your money when you need it. Many people live paycheck to paycheck, but by having access to their wages they spend less on fees and have more for themselves. -  Ram Palaniappan, EarnIn

2. Use The SMART Goal Framework

SMART stands for specific, measurable, achievable, relevant and time-bound. Using this proven framework will assist in setting realistic financial goals, monitoring them and adhering to them. Breaking down your larger goals into smaller, more achievable goals will also help. - Alec Hanson, loanDepot

3. Open Another Savings Account

Set up a completely separate savings account, outside of your normal checking and savings. Implement automatic transfers for a set amount weekly, to ease the burden of having to deposit a lump sum on a monthly basis. Setting aside small amounts on a frequent basis allows for higher savings. - James Webster, ROK Financial

4. Set Realistic Expectations

Keep it simple and don’t try to change everything all at once. Focus on simple short-term goals and set realistic expectations. The small incremental increase will be easier than jumping from 0 to 10% overnight. - Trevor Wilde, Wilde Wealth Management Group

5. Conduct Cash Flow Forecasting

Cash flow forecasting can help you for understand financial inflow and outflow, allowing to set realistic financial goals and track progress. This leads to a more disciplined approach to finance, helping them reach their financial goals and achieve long-term financial stability. - Nick Chandi, ForwardAI