Every single one of us has dreams. Maybe you wish for a bigger home, a vacation to some exotic land or a luxury car. Whatever it is, it can be a reality. You just need the right mindset and to be brave!
Allow yourself to dare to think big. That passion and yearning for something you truly want will motivate you to get it.
Dreams can take a while to come to fruition, though. That luxury car may not come cheap! But, when you get impatient, that’s when trouble rears its ugly head. You either give up on your goals, get a loan or use your credit card.
Giving up on your dreams will just make you miserable. You’ll forever wonder, what if? What could it have been like? No-one wants that.
Alternatively, accomplishing your aspirations by getting a loan or using your credit card, puts you in the deep dark hole called debt. Now you have to consider if you can afford the minimum monthly payment rather than thoroughly enjoying the fact that you reached your goal. Is that the way you want to live?
If it isn’t—and I sincerely hope it’s not—follow these tips to plan and budget for your goals and make your wildest dreams come true.
How To Make Your Dreams Come True
Creating a budget is key for you to know how you will be able to afford your dreams. Remember, we are trying to avoid going into debt.
Click the link below to download and print the free Monthly Budget Workbook. Use it to determine your monthly income and expenses.
This is the only way to truly know how much you can afford to can save towards your goals.
Click here to download your free Monthly Budget Workbook.
Save An Emergency Fund
Unforeseen circumstances may pop up at any time—a trip to the emergency room, your car breaks down or your refrigerator stops working. All of these require immediate attention and money.
If you have not set aside money for an emergency, you will probably end up using the cash you were saving for your goals. This will completely derail your progress and it’s not something you want to do. Your other option is to borrow the money required or use your credit card which puts you into debt.
In an effort to avoid this unpleasant situation, save a minimum emergency fund of $1000 before you even start saving for your dreams. It may be difficult because you will feel like you are delaying progress but you’ll be thankful in the event that something goes wrong!
What Is Your Goal?
Now it’s time to turn your dream into a goal. Write down what you want and then research it.
How much will it cost? Is there a way you can get it cheaper? For example, if you want to travel, will it be cheaper to go with a group or is there a particular time of the year when costs decrease? Think about your goal from every angle and see how best you can afford it.
Set A Deadline For Your Dreams
Okay, so you have a goal but when do you want to achieve it?
For bigger, more expensive dreams, be sure to give yourself plenty of time to save the money you need. Start working towards achieving your goals early. Don’t wait until the deadline is near to start scrambling. You’ll stress yourself out and you may be tempted to go into debt.
You know your goal, how much it will cost and when you would like to achieve it. But, is this feasible?
Divide the cost by the number of months you have until your deadline. For example, if your vacation will cost $1000 and you want to travel 10 months from now, you will need to save $100 each month. Can you afford that?
If not, you might have to extend your deadline to reduce the amount of cash you need to set aside monthly or be creative and think of ways you can control your spending to save money faster.
When you’re saving towards your dreams, it’s a good idea to separate your savings.
Set up your account so the money is automatically transferred every month. This is super helpful because you don’t have to remember to do it manually and you’ll be less tempted to use the cash for something else.
If you have a long-time savings goal, you may even consider a high-interest bank account. These kinds of savings plans, give you a higher return on your money which is just sitting there anyway but they may limit when you can withdraw your money. Check the fine print before you sign up and make sure you can access your money when you need it without any fees.
Stick It Out
You have a plan and it will take patience to accomplish your dreams but you CAN make it happen.
After saving a big wad of cash, you may start wavering and consider financing the rest because the payments will be lower. Don’t do it!
You made it this far without interest hanging over your head. Stick it out and before you know it, you will reach your financial target.
Planning and saving for a goal is a huge undertaking and once you accomplish it, take the time to revel in the fact that you did it! And, all without going into debt!
Now you see that making your dreams come true can actually happen. Tell me what you are saving for in the comments below.