When considering budgeting, financial goal setting is one of the rare activities used by the wealthy and successful, who are well used to using the tools available to manage their personal finances online. Information is easy to find because of the breadth of social media platforms and their accelerating use among the money. Sometimes the problem is not what you know, it's what you do with that knowledge - from Belfast, Ireland to Kuala Lumpur, Malaysia.
Of course, financial goals can be anything from short-term small goals like saving to a guilty pleasure to big goals like becoming debt-free, but it can sometimes be a struggle to know what to aim for. Examples of financial goals are good places to start when planning personal finance online because they can be copied, emulated or modeled, and as this series addresses all aspects of personal finance online, we have examined the top financial goals from the wide range of sites that offer insight into personal finance online and present below the top 5 examples of financial goals.
1. Clean up credit history
The first point of our examples of financial goals is the cleanup of credit history. One of the primary weapons of managing personal finance online is credit or FICO scores. Contrary to the myth, there is no single 'score' or 'rating' - these are different calculations from lenders based on how much profit they can predict from you. Common ways to clean up a personal finance credit history are to check your credit reference agency report, change bank accounts, close unused credit card accounts, disengage people to whom you are associated with joint borrowing, and make sure you have standard things like a landline and entry in the voter register. These can all change your profile after 6 months have passed.
2. Create a workable budget
Entering number two in our examples of financial goals, and one that is particularly relevant to managing personal finance online, is to create a workable budget. The central principal of any budget is to understand where all the money is going - specifically and then make choices and decisions on how to use the funds available - within your funds.
There are many personal finance online software tools, budget spreadsheets, family budget spreadsheets, all available to help set these financial goals.
3. Remove bad debt
The inclusion number three in our examples of financial goals is to eliminate bad debt. It's easy to eliminate bad debt. Pay the minimum on all cards and loans except the most expensive interest rate, which you set aside as much of the budget as possible. Once this card is paid, transfer all this budget to the next expensive one, and so on until they are all gone. Other options include debt management plans, debt counseling services or insolvency proceedings such as bankruptcy in voluntary agreements. The hardest action in eliminating bad debt is taking the initiative to start, the rest is pretty straightforward
4. Create an automated savings fund
The inclusion number four in our examples of financial goals is a significant part of the budgets for personal finance, whether for a rainy day, an emergency or some future purchase. Sometimes called income smoothing, it involves paying yourself first out of money coming in before paying expenses and bills. Just flip an amount the same day the paycheck clears the bank - you'll never notice it's gone and build up your reserves. You can keep track of how it builds by including it in the budget section of an online personal finance tool or personal finance software budget.
5. Start a business
The final and possibly most lucrative example of our financial goals is to start a business. This is easier than it sounds and can be done even if you are in a full-time job. It is really easy to start an online business, create knowledge products and sell them online. All of this secondary income has huge tax benefits, and if you want to get serious about it full time, there are plenty of buses like me that have done it and can help.
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