Islamic Finance Blog & Articles
To achieve your goals, it isn't enough to just visualize or write what you want to achieve, but it's also necessary to establish a kind of guide to achieve it. Remember that you cannot reach what you cannot follow, since in that way it's very easy to get lost along the way.
The journey to reach your financial goals requires commitment and discipline.
For that reason, I decided to put together this short but concise guide to 6 simple tips that you can follow to take your first steps to reach your financial goals. Let's get started.
Develop a good financial habits
It's easy to set goals, but it's more difficult to develop the habits necessary to achieve them. To make things easier, make a list of your goals, what you want to achieve and in how much time it will take. Be specific. By being specific, you will find it easier to plan to reach your goals.
Instead of saying "I want to be financially free," say "I want to have $100,000 in my bank in 10 years." It is important that you be realistic and know how to analyze your strengths and weaknesses.
With the right planning and purpose, you can create long-term habits that will help you make positive changes in your finances that will get you where you want to go.
Leave the luxuries for later
It isn't about completely limiting yourself from spending and having fun. yourself from time to time, but it is about learning how to control and keep track of your cashflow coming in and out. If you really want to achieve a goal, you'll have to tighten your belt a little and cut unnecessary spending and focus on your needs.
For example, your frequent outings to eat at restaurants or the coffee you buy on the way to the office; if you notice that you have spent too much, then don't dine out frequently. Find cheaper alternatives,
Review your cash and credit card expenses and learn how to control the small expenses but when accumulated they become big and take a toll of your finances. Never spend more than you earn because if you do, you won't be saving anything to achieve your goals.
Save money to invest
While those small expenses, accumulation of debt and lack of planning can hinder you from reaching your financial goals, in most cases, lack of savings habit are more crucial - financially speaking. Avoid spending more than you earn, make smart purchases and save to invest for the future; these are key elements of a good financial habits.
A tip for saving more is that you spend less and avoid unnecessary expenses with the help of a budget list - more on this shortly - and finding an extra job or some other source that generates additional income to grow your savings.
Then, when you've saved enough, decide your financial goals, assess your risk factors, and start small. This will help you have extra capital to achieve your goals.
Stick to your budget
Not having a financial plan will only lead you to chaos and to lose control of the tasks that you must perform on a daily basis to achieve your goals. Although it is sometimes difficult to follow plans faithfully, trying as hard as possible will guide you in directing the behaviors that will lead you to get what you want.
This is also key because it's almost impossible to reach a financial goal without a budget. No matter what type of goal it is, a budget will help you control how much you spend and how you spend it.
To budget quickly and easily, simply make a list of your fixed and variable income, take your monthly income into account, and allocate your budget according to the goals you want to achieve.
Debts, debts, debts, how much stress do debts generate, right? And if they cause you so much stress, why don't you set out to eliminate them?
Credit cards, mortgages, car payments, and other loans seem like stepping stones to help you make your dreams come true, but they end up turning into a nightmare when they pile up. So, don't put off what you can do today until tomorrow and start eliminating your debts now, no matter how slowly you progress, over time it will become a habit.
Focus on reducing your debt or keeping it to a minimum, as these become vicious cycles that prevent you from moving forward. A good option to quickly reduce them and prevent them from accumulating is to request a credit or loan to pay them off one time, but this will require a bigger cash outlay.
Another option is to separate your debt and decide by what percentage you want to reduce them. You can try to pay 4, 8 or 10% of your debt on a monthly basis, according to its conditions and your possibilities.
Make the act of investing a habit
Remember that the earlier you start investing in life, the more likely you are to achieve financial freedom. It isn't the same to start investing at 30 than at 20. The latter will bring you higher returns when your retirement time comes. When you start investing earlier, you will be able to take full advantage of the power of compounding.
When you have enough money set aside as an emergency fund, you can consider investing your disposable income in an instrument that will provide you with an attractive return according to your goals.
You can approach an institution or professional financial advisor and ask for more info. Get informed, remember that information is power and today there are countless attractive options to invest through the Internet, even with little money.
Decide on your goals, consider the risk factors, start small, and expect the benefits.
The beginning of the year is an excellent time to set your financial goals, since these are essential to achieve your other goals and it's easier to achieve them if you've the necessary resources, tools, and information.
If you still feel a bit disoriented and don't know where to start, you should seek the support of a good financial advisor who is responsible and committed to his work.
Reach out to them and they will plan that is tailored to your needs to reach your financial goals
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