Decide your money goals

Your money goals are your financial goals. Your financial goals will be different depending on how much disposable income you have and whether this is enough to maintain the required payments towards your current unsecured debts.

Before you can decide on your money goals, you must first carry out the following steps:

Understand your income and living expenses
Calculate your disposable income
Understand your unsecured debts

Once you have completed these steps you are then ready to decide your money goals.

To find out more continue reading below.

The different money goal options open to you are listed below.
 

1. If your disposable income is not enough to pay your unsecured debt:

If you have worked out that you do not have enough disposable income to pay your unsecured debt, then you have a debt problem and you need to take action.

You may simply need to reduce some of the outgoings you have listed in your living expenses which are not actually so essential.

However, if reducing your expenditures is impossible, then you may have to consider undertaking a debt management solution such as a debt management plan or individual voluntary arrangement. Use the resources of this web site to learn more about these options and chose the solution which is right for you.

2. If you have surplus disposable income:

If your disposable income is more than the total you need to pay for your debts each month you are in an ideal position.

If you have unsecured debts, you could decide to increase the payments towards them so that your debts are paid off quicker.

Alternatively you may want to spend your extra funds in some other way.

One of the most sensible options is to try and save for a rainy day.  However even at the best of times saving is never easy. For some great tips about how to save more effectively have a look at the Beat My Debt savings guide: Plan to Save

The next step

Whatever money goals you have decided on, simply understanding your income, living expenses and disposable income is not enough. You will never be successful unless you get better at day to day money management. The key to this is keeping a money diary.