I’ve always been a goal oriented person. Over the years, goals have changed and evolved from health to fashion to business goals. As 2017 rolled around, it came great changes. The business and blog evolved. Partnerships closed and collaborations, new clients, and opportunities opened up. As an entrepreneur, I’m incredibly aware of my ability to increase or decrease my income. I determine my income ceiling. I’m 6 months from turning 30 and can’t tell you how amazing my finances have been in my 29th year. I set a goal to increase my sales and services by $20,000 this year. (It comes out to increasing service revenue by $5,000 a quarter which has proven to be very manageable.) Yes, that’s a significant increase and it’s strategic. I have a few pending major purchases and knew I wanted to make and save some serious money this year. As I have these purchasing long-term goals in mind, it’s been easy to save. Maybe for you, you’re hoping to pay down debt, build an emergency fund, or make a major purchase.
Here are 5 tips we’ve learned along the way to help reach our financial goals.
1. Be conscientious about your spending.
When it comes to credit and debit cards, it’s easy to lose track of your balance. Not ready to ditch the perks of credit cards and shift to the cash envelope system? Keep track of your expenses through the calculator app on your phone. Get into the habit, by making sure you enter the amount into the calculator right after checkout and prior to leaving the store. It takes around 10 seconds and you’ll create a great habit.
2. Live off one paycheck a month.
For most of us, we get paid on a bi-weekly basis. As our income grows, we often allow our expenses to increase with our income. By keeping living expenses to one paycheck a month, it allows you to save the other check. With saving half of your monthly income, you can reach financial goals quickly and get past living paycheck to paycheck.
3. Cut the excess expenses in your budget.
It’s easy to spend hundreds of dollars on clothing, coffees, eating out, and entertainment throughout the month. Set a budget and choose to meal prep and make your cold brew at home. (We have an awesome recipe for cold brew right here. And teach you how to buy organic for $50 a week.)
4. Pursue multiple streams of income.
As an entrepreneur or career minded person, it’s always wise to diversify finances and pursue multiple streams of income at the same time. Whether a student, working multiple side jobs, or being self-employed, figure out ways to develop passive income or increase the money coming in through additional jobs. This is a great way to increase money coming in allowing you to reach your financial goals faster. Keep a spreadsheet of your income. This will track multiple streams, allowing for estimates in income growth for each quarter, allowing for ebb and flow throughout the year, knowing where hustle and rest need to find their natural rhythm.
5. Keep your goals in front of you.
Whether it’s a major purchase, paying down debt, or filling in a paper thermometer to track your income increase, set your long-term goals in front of you. It will keep you moving forward as you visualize the best option for your finances. We keep a mood board with all things financial goals in our Evernote app. It’s on our phone all the time and great for referencing when we need additional inspiration.
Looking for more resources on finances?
We love this blog. The Financial Diet is great and our go-to resource when it comes to being a creative entrepreneur and becoming financially savvy.
Dave Ramsey is a master and with good reason. If you’re looking for an intensive and needing to pay down debt quickly, we can’t recommend him enough.
This is a blog post on our past relationship with finances and one worth rereading. Getting Real: From Broke to $10K
What are your current financial goals? Any tips that have worked for you?
We’d love to hear from you. Let us know in the comments below.