Financial rewards are acceptable for certain realized financial goals and results. Businesses utilize financial rewards as a common method to incentivize and recognize employees for their achievements, contributions, and stellar performance.
Just as businesses use financial rewards to motivate employees, individuals can set financial goals and objectives that will be rewarded upon achievement.
Financial rewards can vary. Being as simple as dinner at a favorite restaurant or as extravagant as a dream vacation, the financial incentive should be commensurate with the financial achievement. Saving an emergency fund of $1,000 may merit an ice cream cheat day. Saving an emergency fund that represents six months of living expenses may justify a weekend getaway to a favorite destination. Building an emergency fund of 12 months may merit an international destination for vacation.
Financial rewards should encourage and motivate the continuous financial improvement of an individual. No individual should every think that financial freedom has been attained. There is always room for improvement. Continuous growth and development should be constant aspirations for any individual. There will always be innovative methods and strategies to invest and save money. There will always be philanthropic requests that require financial support.
Achieving the first $25,000 in your retirement savings may require a couple of financial incentives. One reward may include purchasing an item that brings you happiness or joy. Investing in your physical health is always a plus. Perhaps you can hire that personal training. Better health can lengthen your lifespan and improve your life in retirement. Investing in yourself can be a great financial reward that can allow you to gain a new skill that may result in additional income. For example, cooking classes or massage therapy courses can result in new skills that can be monetized.
The next financial goal can be the accumulation of $50,000 in retirement savings. Now, the financial incentives can become more attractive and inviting.
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Nicole Michelle
Finance and Money Wiz
January 25, 2024
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