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finances

How to Set and Reach Your Financial Goals

A dream is just a dream until a plan is created and executed. It can be a challenge to know where to start, as some days the expenses seem to come in faster than you can keep up. It’s time to take a step back, think about what you want for your life and begin building that future today.

How to Set

You are probably familiar with the concept of goal setting in your everyday life. Often, they take on the form of dreams, like someday having a vacation home in Hawaii or being able to complete a half a marathon. It’s fantastic that you have these dreams and dare to imagine bold things for your life.

However, financial goals should be approached differently. This is why it is difficult for many people to ever achieve their goals, because they don’t know how to set them. A great place to start is taking the time to really think about what is most important to you. Where do you see yourself in five years based on the current financial decisions you are making? Are you happy with this? If not, why? What needs to change? You may want to sit with your partner as you both talk about your goals. You may be surprised at what they have to say and how it may spark ideas of your own! Some examples of other’s financial goals are: paying off credit card debt, starting an emergency fund or saving for a down payment on a vacation home.

How to Attain

If you haven’t heard of the acronym SMART, it’s time to apply it to your financial strategy.

S – Specific

Your financial goals need to be specific. What is it exactly you want? Instead of saying, “I want to be a better saver,” change it to, “I will be a better saver in the entertainment part of my budget. I will do this by…”

M – Measurable

Because we are dealing with numbers to begin with, your financial goal should be something that can be measured. This is so that you can tell how far or close you are to the mark. “I will increase our emergency savings by 10 percent.”

A – Achievable

Are your goals out of this world? That may be good for daydreams, but if you are wanting an action plan, it should be attainable. For example, saying that you hope to win the lottery by buying tickets isn’t exactly achievable. Have a goal that is within reach and motivating.

R – Relevant

Is the goal relevant to your life? Does it make sense? If your goal is to buy a luxury vehicle, but you still have many other debts, it may not be a good goal. If it isn’t relevant to your life at this time, it can be put on the back burner.  It’s all about the climb.

T – Time Bound

Every goal needs a time stamp. If there isn’t, the goal will just be floating in your mind. This can make it less motivating to accomplish, ensuring that it will never get done. Have an end date in mind. Once this date comes, evaluate where you are and what you did well. Take the time to recognize what you can work on for the next goal. Keep building off of this until you get to where you want to be financially!

Once you start setting some financial goals, open an account with us to help you continue that success!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Where Will You Be in 5 Years?

Financial Goals

Establishing your personal finances isn’t an overnight process, but deciding to start can be! Whether you want to save $1,000,000 for retirement, pay your child’s education, or become debt-free, choosing your next fiscal goal is the first step. At Peoples Bank & Trust we want to help you not only achieve your next financial aspiration but each and every one that follows! To help you start planning for the future we’ve compiled this strategic list to ensure you start your journey on the right foot. Here’s where to begin:

The first 2 Years:

  • Establish Financial Goals
  • Pay Yourself First
  • Create an Emergency Fund

During these years your primary priority is creating a solid foundation for your personal finances.  By deciding which goals mean the most to you, establishing monthly savings, and working those initiatives into a well-rounded emergency fund, you can be certain that whatever life throws at you, you and your finances will find a way to get through it.

Years 3 and 4:

  • Begin Your Debt Snowball
  • Build Your Credit History
  • Start Your Retirement Savings

The following two years will be creating the framework of your ongoing financial aspirations. These components will help ensure that your continued savings efforts are brought to fruition through retirement planning and debt elimination. Once you become debt free, the world is your oyster! Your final step to financial freedom is choosing where you want your journey to take you next.

The 5th Year:

  • Choose a Giving Strategy
  • Begin Investing
  • Determine Your Next Goal

Throughout the final year of this financial compilation, you should become focused on the future. Now that your debts are erased, your savings have been started, and you have put your money to work, it’s time to decide what you want to do with those funds. This is an extremely personal choice and should be made with the best intentions and available information. However, should you need assistance or further insight into possibilities, our dedicated team is here to help.

 
Over the next five years, we believe you can accomplish all of these endeavors and more. If you’re ready to begin your financial journey, stop by your nearest Peoples Bank & Trust branch today and speak with one of our personal bankers to get started. We’d love to help you achieve your personal and financial goals, one year at a time!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender