Achieve your financial goals with these top tips

It’s difficult to aim for something without a target. So, if you’re wanting to make some headway with your finances, you’ll want to establish some financial goals.

You should establish measurable goals that are time sensitive, to motivate you to implement the changes needed to achieve them. It might not be easy, but we’ll try to simplify the process for you with these top tips, helping you on your way towards achieving your financial goals.  

  1. Create a budget and stick to it

One of the best ways to handle your spending is to budget, so that you’re in full control and know where your money is being spent. By tracking your outgoings you’ll be able to make informed spending decisions, setting money aside for your essentials like rent, food and phone bills, for example. Any money left over could be saved or put towards the non-essential fun stuff that we all need from time to time!

If money is a big concern of yours, then a budget will save you from that fear of checking your bank account. Setting yourself a monthly or weekly budget will place you firmly in the driver’s seat, instructing your money where to go.

It turns out that budgeting is simpler than ever, thanks to some handy budgeting apps that allow you to track and control your expenditure wherever you are, from your mobile device.

  1. Make the most of tax allowances

It’s no secret that you can use your tax allowances and reliefs to reduce your tax liability. You could take advantage of the Income Tax Personal Allowance, the tax-free Dividend Allowance and the Capital Gains Tax Allowance, for example. These are great techniques to make substantial savings, however it can be a complex process, since legislation can change on a regular basis and the UK tax system is intricate.

Because of this, it’s recommended that you seek the help of a financial planner, who will take your financial circumstances into consideration, as this can have a direct impact on the savings that you can make. By working with a financial planner, you can ensure that you’re taking full advantage of tax allowances, making your money go further in the long run.

  1. Formulate a financial plan

If you have well-developed financial goals and a good understanding of your current financial circumstances, you’re ready to form and implement a financial plan. This will allow you to establish how much you need to save and invest in order to reach your goals.

You might want to seek help from a financial planning service, who will help you to formulate a plan that suits you and your situation. They will also be able to advise you on the best saving techniques and investment choices, to help you to achieve your goals effectively.

  1. Set up a retirement plan

It might seem like the distant future for many of us, but it’s never too early to start planning for your retirement. There are several options available to retirees, since legislation has changed over the years.

You can now choose how you claim your pension benefits, and these can include buying an annuity, tax-free cash or choosing to draw an income from your savings, as opposed to your pension fund. The freedom is yours and you may choose one route when taking funds, or a combination.

The earlier you start planning for your retirement, the more confident you can be that you’ll be able to fund your desired lifestyle when you stop working.

Your financial goals won’t achieve themselves and it’s up to you to put the initial steps in place to help you to reach those targets. You might want to choose a family member or friend to help to keep you accountable in the early stages, so that you don’t fall off track.

As your planning becomes more intricate, you could benefit from finding a financial adviser who will help to guide you through the process. Don’t wait to start planning for your future, the sooner you implement a financial plan, the sooner your goals will become a reality.  

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