Some things to consider when reviewing your financial goals
Excerpts of a TD Newsroom article on the same topic published July 16, 2020.
Are you mostly focused on paying down debt or is saving money to establish an emergency fund top of mind for you? Or are you working towards a long-term financial goal like planning for retirement or buying a home?
It's okay to not have the answers to these questions right away, or to not be able to tackle them all at once. No matter what your financial outlook is, it's always a good practice to take a moment to revisit your financial plan to make sure it's reflective of your changing needs and situations.
Think about your short-term financial goals
Before you look to the future, make sure you know your current situation. You may find it helpful to do a full self-assessment of your finances. That means looking at how your income and savings may have changed over the past few months, as well as the status of any loans, mortgages or lines of credit.
Here are some tips on how to manage your immediate and short-term financial situation:
- Determine your financial priorities to help you adjust your plan, making sure that it's realistic and is in line with your lifestyle – especially if your lifestyle or daily routine has undergone any recent changes. Decide what's important to you and your personal circumstances.
- Develop a monthly budget to monitor your expenses to prepare for the unexpected. Look at where you're spending your money and separate your spending into needs – such as food and housing costs – and wants – such as entertainment and eating out.
Plan for your long-term financial goals
Knowing what your longer-term financial objectives are is important to being able to work towards meeting them in an actionable and manageable way. These are some ways you can approach this type of planning:
- Seek help from a financial advisor. They can assist you to figure out what to prioritize and how to create a realistic plan that can help get you where you want to be, financially.
- Consider setting aside even as little at $25.00 each month to start building an emergency fund. You'd be surprised to see that over time, this can add up and help ease the burden of unexpected expenses. Once you are comfortable with the amount saved in your emergency fund, you can turn your attention to planning for different life events or longer-term savings goals, whether that's buying a home, funding education or saving for retirement.
Although evaluating your finances and adjusting your plans may seem daunting, by making it a habit to revisit your budget and savings plan often, you can feel better prepared for unexpected circumstances should they arise in the future.
This content discusses current topics of interest in a general and informational manner only and may not be appropriate in all circumstances. Please ensure that you seek advice personalized for your situation from the appropriate professional, consultant or subject matter expert on the topic of interest to you.
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