Ready to Start?
Set a Vision for Financial Success
Key Points:
- Setting goals is the first step toward taking control of your personal finances and your future.
- Figure out what you want, make your goals realistic, and create a simple plan to make them happen.
Step 1:
Create your Goals
Setting financial goals is like creating a map. Without a map, it’s easy to lose track of where you’re going. Goals keep you motivated, help you make better decisions, and ultimately, bring you closer to where you want to be.
Step 2: Answer These Questions
Answer these questions:
- What do I want my finances to look like in 5 or 10 years?
- What’s most important to me? (Could be buying a house, saving for travel, starting a business)
- What would make me feel secure and happy?
Your answers will help guide what your goals should be. The clearer your priorities are, the easier it will be to set goals that motivate you.
Step 3: Simplify your Goals
Ok now that you have the questions answered, what next?
Break them into short-term, mid-term, and long-term to make them manageable:
Short-Term (1 year or less): This could be starting a $500 emergency fund or paying off a small debt.
Mid-Term (1-5 years): Goals like saving for a car, a vacation, or building a larger emergency fund.
Long-Term (5+ years): Buying a house, saving for retirement, or starting a business.
Breaking down goals makes it easier to focus on what needs to be done now and what can come later.
Step 4: Make Your Goals SMART
Before taking action on your goals lets make them SMART:
- Specific: Be clear about what you want to do (e.g., “Save $3,000 for emergencies”).
- Measurable: Decide how you’ll track it (“Save $250 each month”).
- Achievable: Make it something you can realistically accomplish given your income and expenses.
- Relevant: Pick goals that are important to you right now.
- Time-Bound: Set a deadline (“Save $3,000 by December”).
The more specific and realistic your goals are, the easier it is to achieve them.
Step 5: Focus on the Top 3 Goals
You may have a lot of goals, and that’s great—but it can be overwhelming to work on too many things at once.
Pick your top three goals that are most important to you and work on those first.
This focus will help you feel less stressed and more successful when you achieve them.
Quick Tip
Write your top three goals on a sticky note and put them somewhere visible. It’s a great way to remind yourself what matters most.
Step 6: Create a Simple Plan for Each Goal
Ok, now that you have your top 3 goals, its time to turn it into reality by creating a plan for each goal.
Break your goal into smaller more manageable steps:
Example Plan:
Step 3: Cut down on dining out to make this savings possible.
Goal: Save $2,000 in the next 12 months for an emergency fund.
Step 1: Open a savings account just for emergencies.
Step 2: Automate $167 from your checking account each month.
Having a plan makes big goals feel more doable.
Step 7: Check In Monthly
It’s important to check in regularly. Once a month (at minimum), set a time to review and ask yourself:
- Am I on track with my goal?
- Do I need to adjust anything?
These check-ins help you stay accountable. It’s also a great chance to celebrate small wins, which keeps you motivated.
Quick Tip
In the beginning, it’s easy to lose track since this is a new habit. Try checking in weekly or bi-weekly to build consistency. The key is to keep monitoring your progress, no matter how often you do it, as long as it works for you.
Step 8:
Be Flexible and Adapt
Life can throw curveballs—unexpected expenses, changes in income, etc.
It’s okay if you need to adjust your goals. Maybe you need a little extra time, or maybe you need to save a bit less for a few months.
Flexibility doesn’t mean failure. It just means adapting to what life throws your way.
Conclusion
Setting goals are the starting point of any good plan. By understanding what you want, breaking it into manageable pieces, and staying flexible, you’re setting yourself up for success.