How can you set and achieve realistic financial goals?

The steps to achieving realistic financial goals are;

1. Establish a budget

2. Make an emergency fund

3. Pay off credit

Explanation:

Financial goals can be defined as futuristic aims for money. Formulation of financial goals always involves tracking one's income, expenditure, assets and the long-term objective. Most individuals set their goals to be financially secure so they need to plan effectively. Without financial goals, one doesn't really have a sense of direction with his/her finances. This therefor means there are high chances of this type of individual carelessly spending. Careless spending might lead to very serious consequences when the individual needs the money and doesn't have it.

The best steps to set and achieve realistic financial goals are as follows;

1. Establish a budget

This is a way of tracking all your expenses. When you know where you are, you can steer yourself to the right direction by adjusting your budget to accommodate your financial goals. Most individuals after formulating a budget are always surprised at how much money they waste when it's accumulated.

2. Make an emergency fund

An emergency fund is for unforeseen circumstances that often catch us unprepared. You can start small by setting aside affordable amounts of money, then with time you can start saving large sums of money for bigger emergencies like unemployment.

3. Pay off credit

Credit is money that you owe to a financial institution or even another individual. This should be paid off to avoid the credit accruing extra interest charges.