Take a moment to think about your financial goals for the next five years. Do you want to be debt-free, save more for retirement or work toward a feasible budget? As you think through your aspirations, consider what you could accomplish financially. The next five years can have a positive impact on reaching your budgeting goals.

Here are four steps to get you started:

1: ANALYZE YOUR CURRENT FINANCIAL SITUATION 

The first step is to analyze your current finances. Make a full list of monthly expenses that are fixed (such as rent, groceries and utilities) and others that are variable (entertainment, gifts, clothing). Subtract this list from your total monthly income. Make a calendar schedule of when every fixed expense is due and when your income will clear your bank account so you can create a budget. 

2: ARRANGE FINANCIAL CHECK-UPS 

If it’s possible, try to connect with any and all financial planners you and your family might have. Set annual or quarterly meetings to review your budget, savings or other goals. If you do not have a financial planner, consider setting a calendar alert or reminder on your phone. When the alert pops up, compare your current funds, debt, savings or retirement with those smaller benchmark goals. Note your progress and identify any room for improvement. 

3: CREATE ACHIEVABLE FINANCIAL GOALS

Now that you’ve analyzed your current financial situation and met with your financial professionals, you can choose a few big-picture financial goals you’d like to focus on in the next five years. 

When you set financial goals, it gives your family a time to sit down and review priorities. If you agree to work toward a common cause, you can accomplish things with less resistance and more teamwork. Setting monetary goals will keep you accountable and ensure no misconceptions exist about how money should be spent and saved in the next five years.

Consider some of these goal options:

Get out of debt

• Becoming debt-free means you’ll have full control over your income — and that’s an incredible feeling. Not only will you have more for spending, but more for saving and investing as well. Work with a financial professional to create a reasonable and achievable plan to reduce your debt in the next five years.

Plan for retirement

• Start by making small changes to live within your means so you can begin saving some money each month. Even small amounts of money, if invested early on, can grow to an impressive amount with time. If you save $100 a month, that could grow to $31,644 in 16 years, assuming a four-percent rate of compound interest.

Have a well-stocked emergency fund

• Having a fund that covers at least three to six months of your income is recommended, but more never hurts. The ideal emergency savings goal might be as little as three months or as much as two years of expenses, financial advisers say. It all depends on your personal situation.

4: TRACK YOUR PROGRESS

As with any goal setting, it is important to monitor your progress and measure your results. Doing so will help you determine if the strategies you’re using are working. There are countless tools, template spreadsheets and ideas to keep track of your personal finances, but what works for you is as unique as your goal. The important thing is to keep yourself motivated. 

No matter where the next five years takes you,  make sure to use these four steps to get financially fit.  To receive more monthly tips and advice, be sure to sign up for the Farm Bureau Financial Services newsletter at  www.FBFS.com.