How to Reach Your Goals - Financially

Guest blog by Mette Marie Mandrup

Taking care of your finances is not just a boring task that has to be done. If you are doing it right, it can be the means of fulfilling your dreams and goals, because you have to ask yourself “how do you want to spend your money?”

Some people want to work less and spend time with their children, some want to travel and others might just want to be able to buy a nice pair of shoes. Whether you earn a lot of money or barely have enough to cover your living costs, it is a good idea to think about what your goals are.

When you know what your goals are, managing your money can give you freedom and a mental lift that will help you achieve your goals. Many people are not really aware how much money they spend or what they spend their money on. For some that means a lower quality of life because they are not using their money for what would make them happier, while others work more to earn more money, and then in turn spend more money to compensate for working too much. When people are unhappy or stressed out by working too much, some of them tend to shop more for emotional comfort- they feel sorry for themselves and think that they deserve that shirt, chocolate bar etc.

If you want to find out how you spend your money, try writing down every time you buy something during an entire month. Also, during the month, you can consider what financial steps you need to take to fulfil your goals. If you dream of travelling to Australia, find out what the ticket costs, what the prices of hotels are and decide how much extra money you will need for the trip.

When you have done that you can calculate how much money you need to save. And when the month is gone you can compare whether the things you spend your money on are actually fulfilling your dreams.  If they are not, they should start doing so.

Create a budget that helps you achieve your goals, stick to the budget and start working towards your goals. But remember that for most people it is also a question of priorities. If your goal is to work less, you will earn less money, and thus it can be necessary to live in a smaller house with a cheaper rent or mortgage.

If you go through these steps you will make sure that you are living your life and prioritizing it the way you want to. Also remember to save something for your pensions, so that you can keep living the dream even at the age of 72.