What is the first step in setting a financial goal?
Understand the Problem
The question is asking about the initial action or consideration one should take when starting to define a financial goal. This typically involves understanding your current financial situation and identifying what you wish to achieve financially.
Answer
Create and stick to a budget.
The first step is to create and stick to a budget.
Answer for screen readers
The first step is to create and stick to a budget.
More Information
Budgeting is fundamental because it helps you manage your money, control spending, save more, and make progress towards your other financial goals.
Tips
A common mistake is not tracking expenses and failing to adjust the budget as needed. Consistently monitoring and updating your budget can help avoid this issue.
Sources
- How to Set Financial Goals | U.S. Bank - ramseysolutions.com
- What Is the First Step in Financial Planning? - WiserAdvisor - investopedia.com
Thank you for voting!
