6 Tips to Achieve Your Financial Milestones (2024)

There are certain milestones that are considered to be most important to achieve financial
success.

First Milestone: Pay Off Debt

The first milestone is paying off debt; student loans, credit cards, or a mortgage.
Eliminating debt is one of the most common goals for those working toward financial freedom.

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If you’re a newly single mother, you may be looking at buying your first car or home. You’ll need
to have plenty of money in your savings account to accomplish these goals. Along with a
savings account, having the ability to establish an emergency fund is another financial milestone
we all hope to achieve.

At some point, we also begin to plan for retirement. Setting up a retirement account or adding
money to your 401(k) or Roth IRA is a great way to invest in your future. You do not need to
follow a timeline to achieve these financial milestones, but it is important to plan ahead if you
want to accomplish your financial goals.

Although many of us have similar financial milestones we want to reach, we don’t all have to
have the same approach to achieving them. As you set out to reach your financial goals, take
into consideration your experiences and financial history to learn what may work best for you.

Just because you’re a single mom, it doesn’t mean that you cannot achieve financial success.
Having a single-income household should not deter you from hitting financial milestones. But
what are these milestones? Discover your goals and learn how you can manage your money to
set yourself up for long-term financial success

1. Define Your Goals

The first step to achieving your goals is to determine what exactly your goals are. Think about
the financial milestones shared above, which of those are important to you? What can you
realistically accomplish? It is important to set attainable goals that will help guide you in the right
direction.

Consider setting goals that are measurable as well. Measurable goals can help you see exactly
what you have accomplished. Create long-term and short-term goals that will guide you toward
financial milestones.

2. Focus on Your Needs, Not Your Wants

Prioritizing your needs–rent, utilities, groceries–over your wants, can help you save in the long
run. Frivolous spending can make it difficult to achieve financial milestones.

Determine what your necessities are and budget accordingly. You can still set aside money for your wants, but keep your financial goals in mind while you spend. Following a budget that will allow you to pay
for your necessities while still treating yourself is a great way to achieve financial success and
stay on track toward your goals.

3. Find the Right Budgeting Method

Tracking your spending habits can seem overwhelming, but the right budgeting method can help
you attain your financial goals. Learning how to budget is a great way to save money for a major
purchase, debt payment, or even an emergency fund. As a single mother, you may only have a one-income household and raising kids is not cheap!

There are different budgeting methods. Decide which budgeting method is right for you. Here are some common budgeting methods that you can try:

● 50/30/20 Budgeting: The 50/30/20 budgeting method is one of the most commonly used budgeting
systems. There are only three categories to portion out your money to, creating a
simplified way of budgeting.

50/30/20 stands for the categories that you split your income between. 50% of your income goes toward necessities, which can include groceries, car payments, rent or mortgage payments, insurance, and other bills.

30% of your budget is for wants. These wants can include dining out, shopping trips, or even your daily coffee runs.

The final 20% is meant for savings. Whether or not you have a savings account,
20% of your income will be set aside for your future.

● Envelope Budgeting: The envelope budgeting method is a physical system that forces
you to only spend the allocated amount of money in each envelope. You start by labeling
multiple envelopes for necessities, savings, and other spending categories. Labels such
as; groceries, bills, emergencies, clothing, etc.

By physically separating your cash, you are less likely to mindlessly swipe your credit card, racking up debt or overspend for wants. Envelope budgeting can also help you visualize your spending habits and become more disciplined with your
money.

● Zero-based budgeting: Zero-based budgeting is a type of budgeting method that
requires you to assign every single dollar of your income. This budgeting method is
similar to the envelope system, except you aren’t required to physically separate your
cash into categories. With zero-based budgeting, you can start from scratch and divide
your income as necessary. Although zero-based budgeting is a bit more
time-consuming, it can help you track and manage your spending over time.

4. Invest your money

Another way to achieve a financial milestone is by investing your money and watching it grow. If
you’re not familiar with investing, it’s important to do your research first! Where do you want to
invest your money? Higher-risk investments like individual stocks and real estate are valuable
options. But, if you’re looking for a safer investment, consider a United States Treasury bond or
Money Market Fund. Retirement is a financial milestone that can be reached through
investment as well. Invest your money in a 401(k) or Roth IRA that you can withdraw from upon
retirement.

5. Consider a Debt Consolidation Loan

If your debt is keeping you from achieving your financial goals, then you may want to consider a debt
consolidation loan. A debt consolidation loan lets you bundle existing unsecured loans into a single loan that may offer a lower interest rate, saving you hundreds of dollars.

Consolidating your loans can also boost your credit and make monthly payments more convenient. Keep in mind that there may be up-front costs and other fees when bundling your loans into a single
debt consolidation loan.

6. Be Patient

Milestones are not supposed to be easy to achieve and finding the best methods for you can
take time! Keep in mind that there will be trial and error as you discover what is best for your financial goals. Be patient with yourself and you will succeed.

Define your financial priorities, stay focused on your goals by using a budget and in time your small steps will lead to big results.