How to manage your monthly income and set financial goals

an individual managing his monthly income and setting his financial goals

Do you feel like no matter what you do, you’re not making progress financially? Looking forward to making a financial fresh start? If you answered yes to any of these questions, we’ve got you! This article is for anyone who aims to adopt a positive overriding mindset towards money. Keep reading to learn how to budget for your income, save towards your goals, manage your money loans, and obtain a low interest loan to start a successful business.

1. Become aware of your present financial status

Self-awareness is, without a doubt, the most important ingredient for streamlining your finances. Before setting a goal, first, evaluate your current money situation. How much is your monthly income? What fraction of this income do you spend a month? And are there any pending money loans that require your attention? Once you obtain solid answers to these questions, start with duct-taping any existing holes in your financial game. Pay off your debts, quit bad spending habits, or even hide your credit cards if you need to. Then, forge ahead.

2. Set specific money goals

How specific are your financial goals? While jotting down “ pay off my credit card debt” sounds satisfactory, such vague goals are difficult to execute. Instead, start setting goals that are specific and quantifiable. For instance, instead of scribbling down “eliminate my debts”, try something like “ Pay ¾ of my credit card loan in six months”. This way, it becomes easy to break down this figure into small amounts that are easy to raise. It also becomes easier to track your progress and weigh options that will help you attain the goal faster.  For instance, if you have a crippling credit card loan, you could seek a low interest loan to help you pay it off faster. As much as it sounds counterintuitive, it’s better to service a low-interest debt, than a high-interest one.  As you can see, specificity clears your path and helps you see your goals with additional focus.

3. Change your money mindset

Regardless of how ambitious you are, having the wrong mindset will hold you back. Yet, many of us still have wrong financial mindsets passed down to us from childhood. Some examples of these negative mindsets include :

Albeit popular, the above proclamations are purely myths and misconceptions. For instance, obtaining online loans is super easy if you approach a licensed money lender, and if you arm yourself with the right credentials. Also, saving money and budgeting isn’t a preserve of the super-rich, but rather, a reward for the financially disciplined. It’s as simple as tracking your monthly spending and restricting your spending to slightly below your income. There you go – a positive money mindset is everything!

4. Avoid lifestyle inflation

You know how getting a raise deludes you into feeling exceptionally rich? That’s called lifestyle inflation. It occurs when you inflate your lifestyle and increase your spending in response to an income boost. Lifestyle inflation manifests when you buy a new car, move to a more lush neighborhood- because why not? You can now afford it anyway. But, lifestyle inflation will keep you poor. What’s the point of earning an extra $1,000 if you’ll pour all of it into vacations and dining out? Instead, channel any extra income you make towards investments or an emergency fund.

5. Find extra sources of income

Want to become rich? Stop putting all your dreams in one financial basket. The thing is, one solo venture is incapable of transitioning you into financial freedom. Also, you can’t save your way to solid wealth. Letting your money sit idle in a bank only creates a false illusion of being rich, yet in the real sense, inflation is eating away your money.

So, what are the best channels for investing and growing your money? The obvious answer is starting a business. If you have a job, you can start with a small side hustle. In Singapore, some of the cheapest and profitable businesses to start are tutoring, selling retail goods online, dropshipping, or a healthy foods store. Not sure where to get capital? Well, a low interest loan from a licensed money lender is your best bet. A quick google search will expose you to legit lending companies with some amazing business loans. The best easy loan in Singapore should have cheap interest rates, a flexible repayment plan, and must be registered with the Ministry of Law.

Managing your monthly income and setting financial goals becomes easy when you have the right mindset. A good mindset helps you avoid unnecessary debt, lifestyle inflation, and dependence on one income source.

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