Setting financial goals is something everyone should be doing regardless of their profession. However, it’s especially important for those working in skilled trades. With fluctuating workloads, projects, and payment structures, it’s important to have a solid financial plan in place to ensure stability and success. In this blog post, we’ll be discussing 5 steps to set achievable financial goals specifically for those working in skilled trades.
1. Determine Your Current Financial Situation
The first step to setting achievable financial goals is to determine your current financial situation. Take a look at your income, expenses, and debts. Calculate your monthly expenses and determine how much you can save each month. Additionally, keep track of your assets and net worth to better understand your overall financial situation. This information will help you determine an appropriate savings plan and budget.
According to a recent survey by the National Financial Capability Study, only 39% of Americans have a budget. By not having a budget, it’s easy to overspend and not save enough money for emergencies or retirement. By taking the time to understand your current financial situation, you can create a budget that works for you and start working towards your financial goals.
2. Identify Your Financial Goals
The second step is to identify your financial goals. This could include paying off debt, saving for retirement, buying a home, or starting a business. It’s important to have specific, measurable goals so you can track progress and adjust as needed. For example, instead of just saying you want to save money, set a specific goal of saving $500 a month for a down payment on a house.
According to a survey by TD Bank, 58% of Americans have financial goals. However, only 23% have a written financial plan to achieve those goals. By writing down your goals and breaking them into manageable steps, you will be more likely to achieve them.
3. Create an Action Plan
The third step is to create an action plan to achieve your financial goals. This plan should include specific steps you will take to reach your goals. For example, if your goal is to pay off debt, your action plan might include creating a budget, reducing expenses, and making extra payments on your debt each month.
According to a survey by Charles Schwab, 65% of Americans don’t have a financial plan in place. By creating an action plan, you’ll be more likely to stick to your goals and achieve them.
4. Track Progress and Adjust
It’s important to track your progress towards your financial goals and adjust as needed. If you’re not making progress or falling behind, it’s okay to adjust your plan. For example, if you are saving for a down payment on a house and find that you’re not saving enough each month, you may need to reduce expenses, work overtime or take on additional work to reach your goal.
According to a survey by Bankrate, only 21% of Americans regularly review their budget. By regularly tracking your progress towards your financial goals, you’ll be able to make adjustments and stay on track to achieve your goals.
5. Seek Professional Advice
Finally, if you’re struggling to achieve your financial goals or are unsure of how to get started, seek professional advice. A financial advisor can help you create a plan tailored to your specific needs and goals. They can also provide advice on investments, retirement planning, and debt management.
According to a survey by Northwestern Mutual, 34% of Americans don’t know who to turn to for financial advice. By seeking professional advice, you’ll have the peace of mind knowing you have a plan in place to achieve your goals.
Bottom Line
Setting achievable financial goals is critical for those working in skilled trades. By taking the time to understand your current financial situation, identifying your financial goals, creating an action plan, tracking progress and seeking professional advice, you can achieve financial stability and success. Remember, it’s never too late to start setting financial goals and taking control of your financial future.
> For one on one or group assistance with personal finance, STR recommends that you check out the following resources:
> Inaccuracies with Bureau of Labor Statistics (BLS) data: Many of our blog posts will quote BLS data. SkilledTradeRescue.com has been able to identify that data quoted specifically for Skilled Trades can be as much as 50% LOW in many USA labor markets. For more information on these inaccuracies please visit the STR national labor survey page at the link below. On this page there is a video containing the latest information at the top of the page as well as other information. If you currently work in skilled trades, PLEASE consider participating in our national labor survey.
