It is a wish and dream for most of us to be able to reach all of our financial goals. Whether you want to have a huge house in a big city, or live in a secluded area of the forest, we all have financial goals that we would love to one day reach.
However, reaching these goals is often easier said than done. There can be a lot of things holding us back, most notably for most people is their debt that they carry. However, there are a variety of other things that could be holding you back from your goals, and this article will go over a few of them.
There is no doubting it, most of America has a massive spending problem. In fact, around half of Americans are spending more than they make, and that is incredibly bad. Of course, if you are spending a large portion of what you make, you will be unable to pay off debts or save enough to reach your goals in a timely manner.
This large spending problem likely comes from the reliance that many Americans have on credit cards. Many people use these cards for just about everything that they buy, and this causes overspending because many people seem to think that a credit card equates to free money
Where You Live
That’s right, the city you live in could have a big impact on how quickly you are able to reach your goals. For example, making $65k a year in a low cost of living area such as Kansas will go a long way, but that sort of income in San Francisco will barely be enough to get by with how expensive things like rent and homes can be.
While big city living is a costly endeavour, there are some things you can do to help make it a little bit easier on your wallet. Budgeting can also be a massive help as it will be able to always keep you in the know about how much you are spending, and on what.
In order to be successful in finance, you need to have your priorities straight, whatever they might be. Your priorities will differ depending on your goals. Some will put a priority on saving money, while some others will put all of their available and free cash towards paying off their debts.
However, whatever your main goals are, they should come first. Poor prioritization bites us in the butt when we spend on dinners out, vacations or things, when we should be spending on beefing up a savings account, investing intelligently or putting money towards a down payment on a home.
Too Low of an Income
No matter how good you are at saving money and prioritizing, only so much is possible when you have a low income. If you only make $25k a year, and have expenses that hit over $20k a year, getting ahead will be very difficult and you will consistently find yourself coming up short when it comes to your goals.
If this is the case, you need to look at ways to increase your income, or dramatically reduce how much you are spending. Increasing your income can come in many forms including getting a new job, getting more hours or a raise at your current job or finding ways to make side income such as selling a product or service.
In conclusion, these are just four of the potentially many things that are holding you back when it comes to reaching your financial goals.
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