Admittedly, people have different personal finance goals. From saving money for healthcare to building emergency funds, there is something to strive for. While some reach these goals quicker, others may take longer to attain. Although it sounds unfair that it’s not a level playing field for all, everyone must strive to work towards achieving any of these lifetime personal finance goals. Available data indicates that 30% of the population has long-term financial goals. This is discouraging, but fortunately, you can take steps to make things better for yourself. Below are some goals worth considering.
- Emergency fund
According to statistics, the number of people feeling uncomfortable with their emergency savings has increased in only two years from 44% to 58%. The possible reason is that more people had to rely on emergency funds when the pandemic hit, and millions lost their jobs. Despite the worry, the positive thing is that people at least had an emergency fund to fall on. In other words, emergency savings is a personal finance goal to strive for.
As the name suggests, it is a financial plan that caters for unforeseen future events. While the subject of how much should be in an emergency fund remains a debate, you can decide for yourself. Ideally, the least you can project is six months’ worth of your monthly income. Anything more would be a plus. An emergency fund is different from your savings or investment accounts. If it helps, you can view it as your last resort when everything else is exhausted.
- Plan for other financial management accounts
Contrary to widespread perception, you do not need huge amounts of money to invest. Indeed, anyone can start with a limited sum, but you will need to select the right package to invest in. Financial experts say everybody can own an investment. If you ever consider going on this path, you may want to check out tools like the Metatrader 5 platform, which offers superior trading analysis tools.
- Buying a house
For many people, buying a house is the biggest expense they will ever make. It takes a lot of planning and projection to attain this personal finance goal. Whether taking a mortgage or saving towards it, the underlying objective is to own a house. The standard down payment for a house is 20%, and it’s important to plan toward that. Admittedly, some arrangements can permit as low as 3.5% for a down payment.
However, it would be advisable not to set your sights on that. It is better to plan for a 20% deposit and get something lower. That way, you will have enough funds to pay over the set period for your property. More importantly, using that financial strategy can help you sidestep avoidable private mortgage expenses.
- Owning a car
Image CreditStatistics indicate that over 91% of households own a car. Owning a vehicle creates convenience, saves time, offers privacy, independence, etc. The benefits are many and support why several households own at least one. For these reasons, it is a personal finance goal you can set for yourself. Just like a house, you stand to gain more when you save ahead for the car purchase. When you save enough, it lowers the rate at which you may seek support from a lender. Ultimately, that can save you from high-interest rates.
This is a contributed post.