Goals are important, but why?

Setting a goal is one of the best steps you can take towards earning financial freedom, but so few people actually manage to do it; why?

The truth is that when life is going smoothly, it can be easy to make the mistake of thinking that the good times will last forever, but then disaster inevitably strikes, or an emergency comes out of nowhere, and you’re left scrambling in a bad situation without the money you need to weather the storm.

By setting financial goals, you can take control of your future and avoid many of the pitfalls that life will undoubtedly send your way.

Here are two major benefits you’ll enjoy when you set and work towards a financial goal.

1. You’ll be able to have the finer things in life

The big purchases in life aren’t cheap. Houses, cars, trips, weddings; these things cost a lot of money. Very few people can afford to buy a house outright in cash, yet people buy homes every day, so how do they do it?

By setting financial goals, you can chip away at the big purchases in life, breaking those costs down into smaller, more manageable pieces that you can afford; before long, you’ll have enough for the down payment on your dream home or that sweet new ride, but it all starts with setting a goal.

2. You’ll be prepared for whatever comes your way

When times are good, enjoy them but know that bad times are coming; that’s just how life works. Life is full of ups and downs, and you never know when the tide will turn. Maybe you’ll get sick and be unable to work, or you’ll lose your job unexpectedly. Without a plan, you could be in big trouble.

When most people hear the term financial planning, they think it means saving for retirement, but not all financial goals are long term. A retirement fund is nice to have, but having the savings necessary to bounce back after life throws you a curveball is even more important.

If you set a goal to start saving today, your tomorrow will be better than your yesterday.