Frich on Fishbowl: Setting financial goals
You have had a bad day. You are out at a roof top bar with your friends and decide to treat yourself with a $15 cocktail. Although it is great to treat yourself every once and awhile, think about what else you could do with that money. In a year from now, that $15 would be $15.75. In two years from now, it would be worth $16.54. If you’re wondering, how can I better spend and invest my money to attain my financial goals, you’re in the right place. Our co-founder and CPO Aleksandra Medina recently discussed this topic on an event on the Fishbowl app.
How to get started?
First, let’s establish a starting point. Determine your cash flow, or the amount of money you have going in and out each month. Then, check your personal financial statement. You want to look for any red flags in your spending. Use the Frich app to easily see how much you are spending in different parts of your life :)
Is your cash flow positive or negative? A positive cash flow means you are earning more money than you are spending. Negative cash flow means you are spending more money than you are earning. If you have a negative cash flow, don’t panic! 60% of Americans spend more or about equal to their income. Evaluate what you spend most on.
Picking your financial goal
Think of your long term and short-term goals. Maybe, you want to buy a house in the future. Use this motivation to determine your short-term financial goals. A short term goal might be setting a budget or reducing debt.
Establish a financial morning routine. If you’re not in control of your money, your money is in control of you. When you wake up, map out how you plan to spend money that day. Decide what expenses are and are not in your control. Make a plan to spend responsibly!
Setting financial goals may seem overwhelming. But you can get pretty much anything done if you take actionable steps. Have a clear mindset! This is a long-term process.