Finding Money Motivation When You Lack Money Goals

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Finding Money Motivation When You Lack Money Goals It's never too late to find your money motivation to start financial planning - even if you don't have a goal to build toward at the moment. For many, planning for something so far in the future doesn't present itself as a priority because it's not immediately motivating - which is a barrier most have to overcome. For those who identify with the "FIRE" subculture (Financially Independent Retired Early), retiring at 40 years-old and acquiring assets is a reasonable goal. However, for those who aren't part of the FIRE community, not buying a house or retiring at all doesn't seem to have much appeal - which is fine, but no excuse to neglect your financial life as a whole. Lacking imminent money goals will make financial planning that much harder for you in the future - and you'll wish you started earlier. Gaining control of your money motivation and goals is something to start today - not tomorrow. One lesson we've all learned in 2020 is being aware of your financial situation can have an impact on your well-being. How to get over the "goalless" hump Organizing your finances to optimize yourself for more money in your account is no easy task. Lacking money goals shouldn't be an excuse to not find joy and gratification in long-term planning. Setting up systems for success and learning new skills can be tremendously satisfying. Even if you have no big financial goals, what are the "little" things in life you enjoy? What are the things you want to have money for, that you can also plan for, even when the ideas are a bit abstract right now? Take some time today to think about these questions. What buckets to put your money into Here's some inspiration on funds you can contribute to every month to start growing your money:

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• Retirement: A place for anyone to start their financial planning. It's also an optimal starting point for asking yourself how you want to use your money. Naturally, the best option for you is contingent on your location and situation. The earlier retirement becomes a topic you think about, the better. • Emergencies: If COVID taught us anything, it is how invaluable an emergency fund can be. An uncomfortable truth we must face is many people have lost–or will lose– their jobs because of the impact this pandemic has had. An emergency fund can help you and your family avoid immediate financial strain. How much you need depends on your situation, but a good starting point is saving at least three months' worth of bills, rent/mortgage, and other necessities. • Education: There is a lot of gratification in learning new skills. Spending money on something you want to learn more about is a very satisfying and fulfilling experience. What makes this bucket so attractive is its flexibility. You can utilize it to pick up a new hobby or make it a fund to work on skills for career advancement (especially if your employer does not offer training). • Vacations and trips: If you have family or friends who live far away, traveling might be a high priority in your overall expenses. If so, this means contributing money toward a travel fund every month. You might want the travel money for different reasons, but it will feel amazing to afford a trip without the need for credit. • Treat yourself: A word of caution - this bucket is not for Starbucks or a new book. Money from this fund should come out of your monthly allowance. The "treat yourself" bucket for is for things like a day at the spa, that genuine leather jacket you have wanted for so long, or a fancy night out. Essentially, it is for the treats your monthly allowance does not cover, but that we all need now and then.

Infinite possibilities Even if you don't have a grand financial goal you are working toward, there will be things you prioritize having money for. Find out what you value in life and build your finances around that. While not immediately as motivating as saving for a house or early retirement, it will feel tremendous when you can afford something you want right away – all because you thought about your finances ahead of time. By putting money aside for learning new skills, you'll be able to afford that personal trainer. Assigning real use to your money will give you endless possibilities you will be grateful for.