A financial roadmap is a guide to help you keep sight of your priorities and goals. It is designed to help you focus on your short- and long-term targets–providing a financial picture of how to navigate reaching established goals.
Below is an example of a visual model illustrated by First Financial Credit Union.
- Pay off your Debt- Consider actions that are attainable, realistic, and meet the timeframe in which you expect to be complete. A debt payoff strategy to consider is Debt Avalanche, which pays the largest or highest interest rate debt as fast as possible. Another strategy is the Debt Snowball method, which pays the smallest debt the fastest while paying minimums on all other debt. An additional strategy to consider is Debt Consolidation, which combines debts into a single account. You must determine which strategy is most suitable for your financial picture.
- Build savings- Start by creating a budget, then decrease excess spending. Put yourself in position to earn more income through side jobs and new skillsets. Create a new lifestyle that incorporates discipline around impulse spending.
- Evaluate your budget- Stay on top of your budget. Life events happen without notice. As expenses change, review your budget for the most accurate depiction of your financial portfolio.
- Set Goals- Generate a plan of financial goals. S.M.A.R.T goals are a guide to setting goals that give result-driven success. Make sure your goals are Specific, Measurable, Attainable, Realistic, and Time-based
- Get Organized- Be sure you understand your financial position. Review your assets and liabilities. Incorporate spreadsheets or other tools that will help you get organized.
While detailing your financial roadmap, consider how you can enhance your professional resume, add additional streams of income, or invest for retirement. Each additional financial consideration should increase your financial portfolio and push you closer to your financial goals.
Source:
2020, First Financial Federal Credit Union, <https://www.firstfinancial.org/youth-young-adults/it-all-adds-up/it-all-adds-up-article/your-financial-roadmap/>
