A financial goal is a financial goal that a person plans to achieve at some point in the future. Properly setting a financial goal starts with a rigorous record of spending, followed by a careful inventory of expenses. A person needs to carefully analyze all the expenses he or she makes, both recurring and non-recurring expenses. Several tips that can help citizens to be more efficient in setting and achieving financial goals are pointed out by the National Bank of Moldova (BNM), in partnership with the independent analytical center "Expert-Grup", within the National Campaign on Financial Education, IPN reports.

According to the BNM, the mandatory components of a financial goal are the goal to be achieved and the amount of money that is needed. It is also the time needed to achieve that goal. In the absence of at least one of these three components, there can be no financial objective.

"Secure the achievement of your financial goals - identify, how you can increase your income and prioritize debt repayment. Loans are financial instruments that carry costs, for which you also pay interest. High interest-bearing debts can drain your income. Prioritizing your debt repayments will allow you to redirect the resources freed up for savings. At the same time, doing extra work can also generate additional income which you can use in full to finance the financial goal you have set," advises the BNM.

Another piece of advice is to set aside part of your income for the future. The recommended method is to allocate 50% of income to cover basic needs, such as rent, bills, food, etc. A maximum of 30% of income should be allocated for wants that are not necessarily essential: entertainment, vacations, dinner out, gym membership, gadgets, unimportant clothing or accessories, etc. Finally, no less than 20% of income should be allocated for savings to achieve future goals.

Although the proportion of funding for these categories of expenditure may vary according to income, it is important to categorize expenditure into three types, the last of which is related to the future and long-term financial goals.

The National Financial Education Campaign is carried out with the support of USAID (MISRA).