You have to assign a task for your money to do in order to accomplish your overall financial goals. It’s best to know the task of each dollar before you get it in order to meet your overall objectives.
Assigning the Objectives
What’s an objective? Well that’s the mini-goal that you want in order to meet you bigger financial goals. For example, you might have goal to get 3 months of savings in the bank so that you stop living from pay-period to pay-period. To meet that goal, you will have to come up with some smaller objectives that will help you meet that goal. An example might be that you make it your objective to cut down on eating out. You decide that you won’t eat out for lunch every day and instead will take your lunch. But that leaves you with money that you didn’t have before, because you were spending it on lunch. Now you have to give that money a task!
Picking an Appropriate Task for Your Money
Let’s say that you are now saving $2 a day from your lunch objective. That’s a measly $40 a month, right? Now, have a look at your overall finances. If you were so strapped that you couldn’t even go out to a movie once a month, perhaps you can give your money one task by allocating part of that (say $20 a month) to your entertainment only. And that $20 has to let you relax a little bit in some way, even once a month. Now you have the other $20 to assign another task to. If debt pay down is one of your goals, then that extra $20 can go towards the debt. And that will really help in the long run!
Whatever job you decide to give your money, you have to make sure that it meets the objectives you make to meet your overall goals. Straying can sometimes be hard, but if you make a list of your goals, then you are more likely to meet them. You can also then break each of those financial goals into steps that will really move you foreword and help you stay motivated. Remember, smaller steps are easier to take than big leaps. And the little steps end up covering the same distance. The small steps tend to get you towards your goal with less energy, worry and in an easier, safer manner. And that means you’re more likely to stick to your goals!
