Creating a positive balance on your savings and spending to achieve financial goals is key.
Preferably, saving 20% of gross income works for most people but if you want to be financially free sooner rather than later, this amount may not be enough. Saving about 40% of your gross income may be more ideal.
If you want to successfully maintain the balance between your saving and spending pattern, you need to start somewhere, get in action, be aware of your financial situation at a time while you make necessary adjustments as you progress. Look at the future, come up with a financial plan that helps you balance the competing forces of today and tomorrow.
Goals are critical part of your financial plan, which you should build out entirely to help guide you as you make decisions about how much you need to save for the future and how much you can spend today without worry. So, tracking all aspects of your financial plan can help you see how far you’ve gone and what you still need to do to achieve your goals.
However, there’s absolutely nothing wrong with updating your goals and financial plans, because as you progress through life, your priorities will change and you will change, too. As time goes on, you can adjust and make changes.