As mentioned in a recent post about road trips, I mentioned an interest in shaping our financial future. Before getting married, Matt and I listened to several audio books, poured over articles and blogs, and looked to successful people for advice. From that, we set some short term goals: get out of debt and save for a down payment on a home.

Before we get into the tips portion, I have to put out a challenge to the younger crowd out there. Saving money and smart financial habits are so important to do NOW not later. Just putting away $50 a month towards retirement will pay off in the end. Things are going to be challenging for our generation, since we’ll probably live long after retirement age and things will be way more expensive than they are now.

As for saving for a home,  it’s important to put down at least 20 percent for a down payment to avoid paying extra each month for private mortgage insurance. You also need to get your credit score in shape, particularly for the bread winner of the couple, since this will be the only one the lender will take into account. If you use a typical mortgage calculator, you will find that a 1 percent difference in interest can save you thousands. For a 500,000 loan, the difference between a 6.5 and 5.5 percent interest is about $120,000 for the life of the loan!

Matt and I smiling with the key to our first home! One financial goal = completed.

Hopefully, any fear or guilt hasn’t kept you from reading on. There are easy things you can do now to move toward your goals. First, obviously, you need to figure out what your short- and long-term goals are.

One of the ways we worked towards our goals was by calculating our net worth each month. Using skills in Excel (try searching for a template online or use an online service), we created our own spreadsheets tracking our assets and debts and how they changed from month to month. Suddenly, when you add up all your purchases, those impulse buys don’t seem worth it when you’re seeing them take away from your overall monetary worth and your future goals.

It was fairly easy for us to save money, as we both lived at home with parents (rent free) before we were married. This is not an option for everyone, but it was a choice we both made as a way to achieve our financial goals. I highly recommend sitting down and both writing out your priorities and goals and examining your finances. Are your expenditures getting you closer to those goals? If not, think long and hard about how much conveniences and stuff are really worth it. Is it worth putting off your dreams? Some sacrifices are harder than others, but it will eventually be worth it.

Finally, I would suggest you not only make your goals known, but find friends to help you reach the goals. I’m not telling them to feed your pet piggy bank. Rather, if you’re training for a marathon, it’s easier to train with a buddy.

What are your financial goals? Are you actively working to acheive them? Please share! We can be each others’ financial goal buddies!