goals Archives | MoneyDigest.sg

How to Maintain a Great Relationship with Money

Establishing a healthy relationship with money takes effort, but it pays off. You must manage the highs and lows, and everything in between.

#1: PUT IN EFFORT FOR IT TO FLOURISH

Much like any other relationship, you have to put in effort to your finances for it to grow. A positive mindset and the right attitude towards money can help strengthen your relationship. Plant the seeds of appreciation and contentment for what you already have. Perhaps, you are grateful for your recent promotion, or you are thankful for having additional online vouchers. Working towards a positive mindset can go a long way!

#2: SCHEDULE REGULAR CHECK-INS

According to clinical psychologist Joe Lowrance, “financial wellness is a component of overall wellness”. Regular financial check-ins are necessary for you to know which areas you need to improve on. Then, you must create an action plan to reduce your unnecessary expenses.

Image Credits: pixabay.com

#3: PAY ATTENTION TO SMALL THINGS

If you indulge in artisan coffee on a Saturday afternoon, take the time to relish the moment. You could also purchase a small gift for attaining your saving goals or celebrate a small win at work. Acknowledging the little thigs can keep you motivated and improve your relationship with money.

#4: RESPECT EACH OTHER

Respecting your money means taking care of it properly by practicing accountability. Your money is influenced by how you treat it. Give it the respect it deserves, and it will reciprocate in the same way.

#5: PLAN SOMETHING SPECIAL

Money is a tool used to meet your needs and to achieve your financial goals. If your money does not give you pleasure and is only tied down to sacrifices, then you are likely to feel overwhelmed. To relish the rewards of your income, you must plan for it. Use your extra savings to plan something special for yourself. You can also bring along a friend or your loved one.

#6: ADMIT WHEN YOU ARE WRONG

Some people cannot admit when they have made a financial mistake or deny their poor relationship with money. Be honest with yourself. What is your current financial circumstance? Being honest about your financial situation is necessary for you to learn from your mistakes and to attain financial stability. Try to ditch the excuses and look at your relationship with money through clear lenses.

Image Credits: pixabay.com

Sources: 1 & 2

How to Create Investment Goals

When it comes to investing, goal-setting is a vital step toward achieving financial success. Achievable goals can help you narrow your focus, stay motivated, and create a plan. In this article, you will learn the importance of goals and the steps to take.

#1: DETERMINE YOUR GOALS

Start by determining exactly what you want to achieve. Common investing goals include saving up for child’s education, retirement, and a house. Good investment goals need to be SMART. SMART stands for the following:

Specific: Setting a specific financial goal requires laying out the purpose for why you want to save.

Measurable: Financial goals need to be easily measured to help you assess your progress.

Achievable: Setting goals that are not achievable can diminish your motivation and steer you away from your path.

Relevant: A good investment goal should align with your values and beliefs.

Time-Bound: Calculate how much you need to save monthly or weekly to achieve your investment goal by providing a sense of urgency.

#2: SELECT YOUR INVESTMENT STRATEGY

According to the Financial Industry Regulatory Authority (FINRA), there are different types of goals such as short-term, mid-term, and long-term. Short-term goals can be achieved in less than three years and may be suited to liquid investments such as cash and money market accounts. Mid-term goals that can take up to ten years can be allocated to balancing your portfolio, fixed-income investments, and stocks.

Lastly, long-term goals that can last more than ten years can take a more aggressive approach such as investing in stocks, mutual funds, and exchange-traded funds.

#3: TAKE SMALL STEPS

New investors and those who are more risk-averse can start small to get a better understanding of the process. Adjustment to the investor’s approach can make goals more realistic and achievable.

#4: SEEK PROFESSIONAL SUPPORT

Countless social media pages and credible blogs provide financial advice about investing and other topics. Many investing platforms have educational resources on their website. It is up to you to do your research and seek professional support when needed.

BOTTOM LINE

Assess your investment goals as early as possible to avoid difficulties and complications. Planning and execution of your investment processes require a level of discipline and commitment. Start small if the process feels overwhelming and watch your nest grow.

Sources: 1 & 2

Time Management Tips: Work Smart, Play More

Time is the only commodity that money cannot buy. No matter how organized you are, you can only utilize twenty-four hours a day.

We must manage ourselves and maximize what we can do with the time we have. Let us appreciate how precious time is. Afterwards, let us move on to the next time management tip.

#1: CREATE A TIME INVENTORY

Track your daily activities to get an accurate picture of how much time you spend on various tasks. Creating a time inventory will help you know which activities you should cut down on. This is the first step to effective time management.

You see, many of us are timewasters. We spend too much time reading emails, posting on social media, browsing the web, messaging our friends, and making personal calls. Do your best to spend your time on more productive activities.

#2: SET ACHIEVABLE GOALS

If you have a pile of tasks on your desk, no amount of time management will help you accomplish it all. This is where prioritizing comes in. Use the four Ds of time management: Do, Defer, Delegate and Delete.

Do refers to tasks that are important and urgent. Prioritize these tasks.
Defer refers to tasks that are important, but not urgent. Place this at the bottom of the pile.
Delegate refers to tasks that are urgent, but not important. Delegate these tasks to others.
Delete refers to tasks that are neither urgent, nor important. Can you get rid of these tasks?

#3: WRITE A TO-DO LIST

Carrying a to-do list at work or at school is a time saver. If you have a trusty list, you will never wonder what to do next. A list keeps you motivated and focused. It also provides satisfaction whenever you tick off something from your list. Lists enable you to monitor your progress to ensure that you are on the right track. So, write a to-do list for the day.

Image Credits: unsplash.com

#4: USE TIME MANAGEMENT TOOLS

Whether you are using a planner or a smartphone app, you can speed up the process by planning your tasks with time management tools. These tools will help you plan out how you will spend your time in the future. A software program such as Outlook can help remind you of the events that will soon take place. While your smartphone’s clock app can help you time your tasks.

#5: MAKE A REALISTIC SCHEDULE

A physical planner or a digital timetable can help track your to-do list or important meetings for the day. There are many time management apps that can help you organize your schedule such as the calendar app on your smartphone. Think of the period that you are most alert and put the important tasks on that time block.

When you are planning out your schedule for the week, please do not forget to find time for socialization. Working smart means that you will have more time for fun and for sleep. Most people need about 7 hours of sleep to remain focused at work.

#6: GET IN THE HABIT OF SETTING TIME LIMITS

As you manage your to-do list, you can set time limits for the tasks. For instance, you can set a limit of one hour to answering and reading emails. Stick to the limit! This will help you minimize time wastage.

Image Credits: unsplash.com

Sources: 1 & 2

Why Rewarding Yourself Is Important

John Maxwell once said: “Everybody wants money, yet seldom will anyone budget or control their spending.”

Setting financial goals is an easy task! Reaching these goals is another story. You may intend to purchase your first designer bag or to go back to school this year, but you are still building your funds for it. Moreover, you may have set some financial goals that are harder than you anticipated. Putting these goals into action is the first hurdle that you have to pass.

The second hurdle is reaching the finish line without losing your motivation. The solution to your problem is placing an efficient reward system. Rewards and actions have close association. Think about it! You perform an action expecting an outcome or a reward in the end. Though rewards do now always show up as a trophy, you can expect some form of return. Every time you receive a reward, your body releases a neurotransmitter called the dopamine. It plays important roles in executive functions, motor control, motivation, arousal, reinforcement, and reward. It also plays a role in lower-level functions including lactation, sexual gratification, and nausea. Simply put, it affects how we feel pleasure.

Dopamine spikes in your brain when something important is about to happen. It gives you a surge of pleasure as you finish a task. In turn, it increases your motivation and productivity. Use this knowledge to your advantage. Give yourself small rewards along the way to achieve a bigger goal. You may indulge at the end of the month by rewarding yourself with 5% of your hard-earned savings. Use this money to get a well-deserved treat after the whole month’s work. It will surely keep you going!

As long as you set aside a responsible amount of money, take your mind off the expenses that come with your small reward. Relax! Take these suggestions:

1. Take yourself out to breakfast or brunch.
2. Read a book for 15–30 minutes.
3. Watch an episode of your favorite Netflix series.
4. Listen to your favorite playlist for 15 minutes.
5. Buy a delicious dessert.
6. Enjoy an at-home spa day.
7. Paint, sew, or knit something.
8. Turn off your devices for an hour.
9. Indulge in a long shower.
10. Diffuse your favorite essential oils.
11. Write in your journal.
12. Watch the sunset.
13. Jog for 15-30 minutes.
14. Get a new water bottle.
15. Get a manicure or a pedicure.

Every action is tied to some outcome. The problem is, the result is not always immediate. You will not lose weight overnight. You will lose body fat over time. While waiting, you may lose the motivation to keep going. Hence, putting a simple reward system may help.

Rewards can act as psychological enforcers when you use it as a means of motivation to reach a particular goal. When done right, the natural process in the brain can be used to help you stay on track with your financial goals. The magnitude of the reward is not directly proportional to motivation. Even the smallest treats can get you pumped up for the rest of the month. Use the abovementioned list as a guide to help you put your reward system in place.

Sources: 1 & 2

How To Make A Financial Vision Board

Consumed by the demands of your daily life, it is easy to lose track of the bigger picture. What are your financial goals? What are your dreams made of? A simple representation of all your hopes, dreams, and goals is a Vision Board.

A Vision Board helps you to clarify your financial goals to enable you to achieve them. Its mechanism is powered by the idea that if we put our desires out there, the universe will be able to bring it to us. It is powerful because it forces the person to be clear and decisive about the kind of life they want to lead. Visual images serve as daily reminders of what we really aspire to become.

A study showed that people were more likely to achieve their goals if they write them down. Vision boards take this notion one step further. It enables the person to be specific when it comes to his or her dreams. It makes your financial goals more concrete and detailed. Better results can be achieved by putting your vision board in a place where you constantly see it. Choose five to ten goals to focus on (e.g., getting a new job or paying all your debt). Put these financial goals on your vision board.

Here is an example of a financial vision board:

To create a vision board, you need:
* Poster board/Cork board
* Pins
* Colored markers
* Glue
* Tape
* Scissors
* Old magazines

Aside from these materials, it is important to follow these steps.

#1: DREAM A LITTLE DREAM

Social media and advertisements have conditioned us to want things we see around us. Material things can bring your short-term delight, but what can really bring you happiness? It is time for you to think about that. Daydream the improved life that you want for yourself and your family. A financial board needs to reflect your ideal reality.

#2: COLLECT AND SELECT

Begin flipping through your stack of old magazines and newspapers to cut anything that speaks to you. Use images or words that embody your goals. You can sort all these later once you get a sizable amount of cutouts.

Edit your cutouts into five to ten goals. Then, paste them on your board as you fit the puzzles together. You can even organize the images per theme or per time-frame.

#3: WISH YOUR HEART MAKES

Mentally commit to your financial goals by gluing or pinning them down on your board. This vision is cemented for the year. It may feel weird at first, but this is the first step toward making your dreams a reality.

Hang your vision board in a place where you can revisit your financial goals. Or, you may consider setting it as your wallpaper on your phone or your laptop.

#4: PLAN AND ACHIEVE

Lastly, you must reflect on your financial vision board and think of ways to achieve each one. Choose to focus on one goal at a time or on the smaller goals first.

Image Credits: pixabay.com

Good luck!

Sources: 1 & 2

Search the site