Published on November 29th, 2022
Life today is expensive. With the current state of the economy, every trip to the grocery store is costing you more.
And increases are happening across the board, from food to gas to housing to personal items. Because of this, you’re likely finding it challenging to think about your long-term financial goals.
Having a financial strategy is essential because it will provide you with a comprehensive view of your goals and how to reach them. Put simply, a strategy will allow you to lay out your goals and know how much time you have to reach them.
It will take into consideration how comfortable you are with risk and what you want to do with your hard-earned money.
Once you have your priorities in place, you’ll have a better understanding of where your cash is going each month. You’ll be able to quickly identify what and where you’re spending most of your income.
Additionally, with this information, you’ll also be able to decipher if you want to reallocate where your money is going.
If the talk of money and saving gets you excited, you’ve landed in the right place. Below are three innovative ways to help you reach your financial goals.
1. Save Money
Let’s face it, saving and budgeting aren’t exactly sexy topics. Nobody likes to feel restricted, especially when it comes to money.
This couldn’t be more true today when most people are already feeling a bit strapped for cash. While there’s nothing particularly innovative about the concept of saving money, you can be innovative in how you go about it.
When your financial strategy includes saving money, you’d typically put a portion of your income in a traditional savings account.
However, with modern technological developments, you can start saving more with the help of a budgeting app.
Not only are these apps convenient, but they take the guesswork out of saving. Through AI technology, they can predict your future spending behaviors and suggest practical ways to cut back in real time.
When selecting a budgeting app, keep in mind how you plan to use it. Some apps, such as Mint and Pocketguard, are great for newbies who are just getting their feet wet with saving.
Others, like Albert, will create more custom-tailored saving plans based on current habits. Whatever app you choose, remember that you have to use it! Just downloading it and forgetting about it isn’t going to help you reach your financial goal.
Investing is one of the simplest ways for your money to work harder for you. With investing, your money is essentially working behind the scenes, earning extra cash.
Traditional investing has involved buying stocks and bonds and dealing with the stock market, but investors aren’t limited to those options any more.
You may be able to start investing in a small business. This may be your own business or one run by a close friend or family member. If you believe in the mission and vision, investing in them is a great way to show support.
It also can put your money to good use. Of course, make sure the terms are clear to avoid any mishap or miscommunication. You likely want to be able to retain your relationship.
Another option could be to invest in websites, creating a steady cash flow for you month after month. This is typically called a passive investment, but it takes some work upfront.
You can start by buying a pre-existing site that is making money and improve upon it, also known as website flipping. For instance, you may be able to add more ads and optimize the site for affiliate offers. Once a site has reached its potential, you may decide to sell it and turn a profit.
3. Pay Off Debt
Whether it’s years of missed credit card payments, student loans, or a car payment, debt can quickly add up. Debt can also be debilitating, causing stress and anxiety for you and your family.
Not to mention, having debt means you don’t have the best chance of getting great interest rates for mortgages or other loan applications. Put simply, debt can hold you back.
Now, you can get out of debt by making strict payments each month. This traditional way of thinking certainly works, but there are more innovative ways to get out of debt.
The first is to use your cash back rewards. These points from your credit card purchases quickly grow, particularly if you’re earning double or triple points on purchases.
Depending on your bank, you can either transfer the point balance to your current credit card statement or apply it toward debt relief.
Another innovative way to stay on top of your debt is through an app. That’s right, yet again apps can help you achieve your financial goals! There are quite a few debt-busting apps available today, including Debt Free and Debt Payoff Pro.
Through the use of charts and graphs, these apps will help you visualize how much debt you’ve accumulated and how your payments are helping. They will also provide suggestions for which payments to make and when so you can get out of debt faster.
Achieving your financial goals doesn’t have to be done traditionally. With the help of digital tools and technology, you can reach your goals in creative ways. Whatever you hope to achieve in the future, know that some outside-of-the-box thinking may serve you well.
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