If you really think about it, long term goals are super scary. One of mine is to be debt free. At this time, I can hardly imagine that coming true. Today, I took an hour to brainstorm and reflect on anything without using a computer and here's what I came up with:
1. How to achieve a debt payoff goal: Focus on the small things. By making just an extra $20 a month in payments, you are just that much closer to achieving that goal. Break your payments into how many times you get paid. For example, I have a $100 month payment to my old landlord so I plan on sending $25 a week. Seems less scary, right? By rationing out your payments, you don't get as stressed about making that monthly payment. If I had a car payment, I would do the same. When you break it out, it's easier to make an extra payment because it doesn't seem very large compared to your paycheck.
2. How to achieve a savings goal: Just like a debt payoff goal, trying to build a large savings can seem overwhelming. I decided to cap a budget amount from each paycheck to go toward bills and the rest is instantly put into my savings account. It may only be $10 a week, but once debts start going down, I can move more toward savings rather than debt. Watch your account grow and grow! Choose the right savings account for your goals. For example, if you already have an amount that could give you more interest, talk to your banker about making a switch. Some money market accounts require at least $1,000 to get a better interest rate. The same goes toward an investment portfolio. Talk to an expert to get the best return for your type of investment style. I'm aggressive so once I get back into investing, it'll be more into stocks than bonds. I'll still have a CD or bond that I can contribute toward to have a "safer" investment in case my main investment tanks. Always have a back-up!
3. How to purchase a home after a set-back such as foreclosure: My first home is currently being foreclosed and I'm okay with that. The problem is I'll have a very difficult time purchasing again in the next few years. My current situation makes it seem I'll never own a home again, but there's always hope. I was searching on Zillow and found some very low cost condos near a beach. The properties are very dated, of course, but I love a project. Since they are lower costing, I can set up a separate savings account to purchase the property (or similar) without financing. This will obviously take a while to accomplish, but when it comes to home ownership, I'm prepared to start small and build up. Some banks will let your purchase after 2-3 years depending on how your credit bounces back. Work with a lender as well as a finance expert to get your credit back on track. The more cash you have to put toward a property, the less risky you seem to a lender.
4. New career path: With my migraines, it makes it difficult to be on my feet all day or stare at a computer screen for the same amount of time. I need a more flexible career path so I made a list of what I want to do rather than what I can do. If you just do what you can instead of what you want, you won't be happy. I've written down real estate agent (flexible hours), teaching (requires both sitting and standing plus I love helping people learn), teaching English as a second language (opportunities to live overseas for a bit), getting back into banking, moving up in retail (would require some good shoes for standing so long), and purchasing small condos for short-term renting (very risky industry). When I make plans, I definitely do my homework so stay tuned to what goes on. Getting my teaching certification is already in progress and I'll be working on my real estate license plus TESL/TEFL certification early next year.
5. Family planning: Right now I'm 27 and in no position to give a child a great living situation. So for now, I choose to remain childless and work on my situation. In a few years, I will definitely begin the planning, but only once I get my debt/income situation under control. In the mean time, I'll work hard, enjoy being just me and my pup, and travel. There are still so many things I want to accomplish before I have children. If you notice my typing, I am not planning on having a spouse. That's because I am completely comfortable being just me and that's okay. If I meet the man of my dreams, great. If not, that's fine too.
So what do you think? Did that lower some stress on your situations too?
