Question

Which is the first step in setting a financial goal?

a. setting aside leftover income
b. reducing your spending
c. tracking your spending
d. starting a second source of income

Answer 1

Answer: B. reduce your spending.

Explanation: by not spending money this will allow you to save money for your financial goal.

Answer 2

All four actually.

Step-by-step explanation:

In order to reach a financial goal you need to:

1. Save Money

2. Set and manage a budget (usually a monthly budget listing all your known expenses works)

3. Track your spending, and keep managing your budget.

4. Reduce your spending. If you are trying to reach a goal, a great line of thinking is “Only buy what you Need, Not what you Want”

5. If you are trying to reach a set financial goal quickly, then yes, it makes sense to find a secondary source of income, such as a part time job, or start a selling site on EBay, for items you don’t use anymore, etc.