Uncommon Financial Goals You Must Aim To Achieve

When was the last time you dipped into your emergency cushion and did not have to rely on a loan? Did you ever manage to achieve your savings goals within the set timeframe? Did you ever adhere to your goal of debt freezing for a particular time period? Setting financial goals is very common among people, but few of you achieve your goals on time.

Uncommon financial goals that you must set

Financial experts often suggest saving money for a rainy day, investing money, managing debts and building a retirement fund, but there are some uncommon financial goals that you must aim to achieve.

·         Take a break from your work

All work and no play makes Jack a dull boy. It is vital to earn money because it helps you fulfil your basic necessities. Without money, you will not be able to save money, fund your emergencies and pay off your debts.

Unfortunately, many people, especially those who are making enough to get by, keep working throughout the year and never realise that it is making them banal. Taking a few days off will help you “recharge your batteries”. You will cut loose and be away from financial stress.

Many people think that a break from work will ruin their finances, but as a matter of fact, a few days off will not ruin your financial condition. You will rather find a goal to hit the ground running.

·         Reach financial freedom by 50

You should start saving money as soon as you start earning. Investing is the passport to financial freedom. Many young people stall investing, thinking that they are too young to start it, which is technically not a good idea. Of course, you will keep working even after 50, but financial freedom by that time will help you live off your money without worrying about your future.

Start with investing a smaller sum. Gain knowledge about different types of assets on the internet. Talk to an investment expert who can help you build a diversified investment portfolio. One of the benefits of investing money is that you can offset the impact of inflation.

You can quickly grow your savings for planned expenses such as a house and car purchase. You do not have to hinge on fast loans in Ireland every now and then to meet your unexpected expenses.

Your job or business plays a vital role in deciding how soon you will be able to gain financial freedom. For instance, those from medical and IT professions can quickly grow their wealth. If you are one of those with an ordinary full-time job, you will have to start a side gig or a part-time job. The more you earn money, the better it is.

·         Rely on loans only for big purchases

Many people rely on small loans to meet emergencies. It can hold you back from achieving your financial goals sooner. Although you can easily get funded for small emergencies, loans cost you a lot more in the long run. Small loans are paid back in a lump sum, so you do not look at them the way you do at personal loans in Ireland, but if you roll over the loan for a full one year, you will find that it will cost you a lot of money as interest.

Why you should avoid using loans for small emergency expenses is that you can save a lot of money that would go to interest payments otherwise. The more money you retain, the better it is. You should instead be dependent on loans only for major expenses such as a mortgage and a car loan.

You will be able to apply for these loans sooner if you save money quite fast, and this is possible when you protect your money from interest payments on small loans. You should build a separate emergency cushion to ensure that you will have enough funds when you come across some emergency. Having an emergency corpus will prevent you from chasing lenders frantically.

·         Build a corpus for skills upgrade

If you want to make headway in your career, you will have to constantly invest in upgrading skills. The workplace environment is extremely dynamic now. New technologies are being embraced, and therefore, it is vital for employees to adapt themselves to the changing workplace environment.

Nowadays, companies hire multi-tasking employees. If you want to survive in the workplace, you should be able to manage various tasks. Of course, you will have to hone your skills. Keeping up with the dynamic environment of the workplace can be quite challenging.

You should always try to set aside money for skills upgrades. Courses and vocational training are expensive. Make sure you have some savings exclusively dedicated to skills upgrades. However, if you still need to borrow money, you can do so.

·         Build a cushion for medical expenses

You often do not emphasise the importance of having a medical emergency cushion. Technically, you do not need it if you have medical insurance, but not all kinds of treatments are covered in medical insurance policies. It can be tough to pay money out of your pocket if you do not have enough savings.

It can be quite challenging to save enough money for your medical expenses, but chipping away at your discretionary expenses can help “keep the ball rolling”. If there are some diseases running in your family, you should be extra careful about your medical policy.

Make sure you buy a policy that is comprehensive. Do proper research to buy medical insurance. You need to ensure that you buy a comprehensive policy that covers diseases that have been coming into your family. Having medical insurance is not enough. It is likely that you will have to pay the cost upfront, and then you will apply for reimbursement.

Therefore, it is vital to set aside money during emergencies. It is a good idea if you come up with a set limit, but if you cannot, do not panic. Just keep contributing whatever your budget allows.

·         Generate a fixed-income source

Having a fixed income source is essential to gain financial freedom. Remember that you will not feel as young as you do now after retirement, so chances are you may not be that active. It is hard to live off a small sum of pension every month especially if you are looking to pursue some hobbies and interests or your medical expenses are high.

A fixed income source can help constantly provide you with a constant injection of cash. You will be able to meet all of your expenses without work. The greatest example of a fixed income source is rental income. Other sources include fixed deposits, bonds, etc. The interest you earn on securities or assets can be utilised to meet various types of expenses.

The bottom line

Many of you set financial goals and pull them off, but there are some goals that seem rare, and yet they are extremely important to ensure that your financial situation is not turned upside down. The aforementioned goals are quite high but extremely important.