Let’s kick off the new year with a bang by setting some achievable financial goals! No matter what year it is, we should all aim to boost our earnings, stash more cash, and watch our net worth climb. Achieving financial independence means we can eventually ease up a bit, but until then, let’s stay focused.
Here are five key financial goals that everyone should aim for annually:
1. Maximize Your 401(k) Contributions: If you’re earning at least $45,000 a year, there’s no excuse not to. Remember, these contributions are pre-tax, so it’s not as hard on your wallet as you might think.
2. Invest Smartly: The wealth gap is expanding because the rich invest in appreciating assets. Even during economic downturns, like the 2020 pandemic, the S&P 500 rose by 16% and the NASDAQ by 42%. To catch up, we need to invest both pre-tax and after-tax dollars effectively.
3. Eliminate Consumer Debt: High-interest debt, like that from credit cards, can cripple your ability to increase your net worth, especially in a booming market. Get rid of it so you’re not lining someone else’s pockets.
4. Refinance Your Debts: If you can’t pay off your debts right away, consider refinancing. With interest rates at historic lows, now is a great time to refinance mortgages, student loans, and even auto loans.
5. Track Your Finances: If you don’t know where your money is going, you’re likely spending more and saving less than you think. Take a deep dive into your finances for a month; you’ll thank yourself later.
Investing in yourself is crucial too. Your skills are your biggest asset. Continuous learning, whether through part-time courses or online resources, will help you advance in your career.
Personal Goals:
– I’m committing to 100 hours of intensive Mandarin lessons to regain fluency. Understanding and speaking another language opens numerous business opportunities and cultural exchanges.
– My goal is to increase my net worth by $1 million through strategic business moves and wise investments.
– I also plan to generate significant passive income by investing wisely in venture debt and other vehicles.
In addition to financial goals, I’m setting personal challenges like winning a high-level tennis match and managing my diet better by eating less to appreciate what I have more. I’m also planning to engage more publicly through live interviews and presentations, pushing myself to take more risks and not just work for money.
Let’s not forget about setting up a solid fallback strategy, especially with interest rates expected to rise. Adjusting your savings strategy and risk tolerance will be key to maintaining a steady income flow.
Manage Your Money Better: Take advantage of tools like Personal Capital to get a clear picture of your finances and investment fees. A good handle on where your money is going can make a huge difference in your financial planning.
Stay proactive about your financial future, and let’s make this year count by setting and achieving these ambitious but attainable goals!
