Having financial goals is a great way to stay on track with your finances. But what are the different types of financial goals? And how can you set them up so that you’re more likely to achieve them at AG Morgan Financial Advisors? Keep reading to find out.
Different Types of Financial Goals
There are different types of financial goals, but they can generally be grouped into three main categories:
1. Emergency Fund Goal:
The first type of goal is an emergency fund goal. This is a savings account that you only use in case of an unexpected expense, like a medical bill or car repair. It’s a good idea to have 3-6 months’ worth of living expenses saved so that you’re covered if you lose your job or have another major setback.
To set up an emergency fund goal, start by setting aside $50 from each paycheck into a separate savings account. Once you have $1,000 saved, you can start investing the money instead of keeping it in cash.
2. Retirement Goal:
The second type of goal is a retirement goal. This is when you save money so that you can live comfortably after you retire. Ideally, you want to have enough saved so that your lifestyle doesn’t change too much when you stop working.
There are two main ways to save for retirement: through a 401(k) or IRA account at work, or through a Roth IRA that you open on your own. If your employer offers a 401(k) match, make sure to contribute at least enough to get the match. And if you open a Roth IRA, be sure to keep contributing to it even after you retire so that your money continues to grow.
3. College Goal:
The third type of goal is a college goal. This is when you save money for your child’s education so that they don’t have to take out student loans (or so that they can take out fewer student loans).
There are many different types of financial goals that you should know about. The three most common are emergency fund goals, retirement goals, and college goals. Each one has its benefits and drawbacks, so be sure to consider all of your options before deciding which one is right for you. Click here to get more information AG Morgan Financial Advisors.