A Challenging Way to my Goals with Little Money at Hand

Katrina Jones
Caroll College

Aug ’19 Financial Champion

In today’s large and diverse economy, where practically everything is labeled or formatted by a price tag, it is hard to reach most goals with little money. Achieving goals are often more of financial difficulty than a battle of will and determination.

In cases when individuals wish to climb to new financial heights, become more skilled or educated at specific professions, or desire a better life in general, having a low income will prevent the most significant progress.

Considerably the most adverse problem created by having small amounts of money is its ability to diminish one’s desires and intentions when pursuing certain objectives. Rather than focusing on acquiring more money, individuals commonly become distracted from their goals by the disadvantages of their low income.

However, anyone can generate more financial success and hit their desired targets in life by adhering to simple principles that require discipline only.

The first step towards reaching a goal with little money at hand would be to save money and budget it properly. By keeping a small percentage of one’s earnings, it is as if the second source of income has been created. Therefore, achieving goals like purchasing a new car will be steadily achieved over time without the need for another job, or more money.

By budgeting expenses well, people will be able to maximize opportunities to achieve goals. Besides, spending money on unnecessary items, such as a new pair of sneakers, will be easier because the money that is available to spend will be at a lower amount.

However, for this method of accumulating money over time to be effective, individuals must resist the temptation to pull money out of the amount already saved. If one’s available income is budgeted well, the money being set aside from that income can increase to the point where it can be used in ways to generate more money, such as with interest rates or investments.

Saving money in a bank account is a great way to earn a little extra money through compound interest. Compound interest can help individuals reach long term goals due to the constant percent increase of the money in their account over months or years at a time. Interest rates can vary with different types of accounts and the amount of money within them, but earning interest is very secure.

Investing, similar to compound interest, can double or even triple a person’s savings. Making successful investments can increase one’s savings more significantly and in a shorter period of time compared to interest rates by giving people the opportunity to own shares of extremely successful businesses, which will, in return, increase their chances of becoming financially prosperous.

However, investing is a lot riskier and requires a thorough understanding of economics, the stock market, and e-commerce. In the sense of reaching goals, investments and interest rates are especially advantageous because of how they require no real effort from the individual; the money works for itself.

In terms of future financial success, acquiring an intuitive understanding of the principles that come along with expanding savings in these ways is extremely valuable in the sense of receiving good retirement or insurance.

All of the benefits of investing and interest, no matter how lucrative, can only be obtained through the process of saving and budgeting money properly. People who do this will discover how to reach their goals faster, more consistently, and in multiple ways.

Another way to achieve goals with small amounts of money is to learn how to reduce the costs of payments and maintain a high credit score. Payments on things like monthly bills or even insurance can limit a person’s goals if not regulated well. People with little money, especially, should ascertain that they are not making additional payments, and find ways to reduce these payments if possible.

Some simple solutions, for example, to reduce payments on an electrical bill would be to limit laundry usage by drying clothes outside, avoid using the air conditioner to the greatest extent, and making sure all technological devices are shut off entirely when not being used. Aside from helping individuals save more of the money they earn, reduced payments will allow people to spend more money on their goals.

Similarly, having a good credit score will open up many opportunities to earn more money, but also give people more financial freedom. A high credit score will allow people to receive larger loans from banks, lower interest rates from insurance companies, and reduced deposits on utilities.

In addition to these perks, a high credit score will increase one’s reputation and serve as an advantage when looking to achieve goals by serving as a measurement of credibility and responsibility.

Achieving targets with little money may not be as hard as most people consider it. From saving a small percentage of income to maintaining a high credit score, reaching goals financially really has to do with maximizing the amount of money available to put towards such goals.

In the end, the individuals that work hard to do this will find that they can accomplish anything they desire despite their current circumstances.