Financial goals are objectives or milestones that you want your money to cover at a specific time. Whether it’s building an emergency fund, becoming debt-free, or going on a fabulous vacation, your financial goal needs to be clear.
Five easy steps to Setting Your Financial Goals
- Write them down.
- Make them specific.
- Make them measurable.
- Give yourself a deadline.
- Make sure they’re your own goals.
When you write down your goals you become more focused and accountable. Remind yourself of your goals by posting them where you see them: in your car, on your desk, or on your bathroom mirror.
Don’t be vague with your goals. Instead of “I want to be better with money,” say “I want to pay off my credit card debt in one year”. This goal is something you can measure. You can make changes to your budget to help you reach this goal by the deadline. This way you are accountable and able to take reasonable steps!
Let’s break down our example. If your credit card debt is $5,000 and you want to pay it off in one year, you’ll need to pay $416.67 a month. Now you need to ask yourself, is this possible? If not, then you can adjust your plan. Think of the small steps you can take now, and reassess throughout the year.
Written goal: I will put $416.67 per month on my credit card for one year to pay off the $5,000 balance.
Actions: Set up automatic withdrawals of $192.30 from my account biweekly on every pay day. If I use my credit card I will put the money on it right away. If I don’t have the money I will not buy it! That’s a measurable goal!
Start small and work your way towards your long-term goals.
Achievable goals begin with the end in mind!
Why Is setting financial goals important?
Having a goal will change how you look at your money. You’ll start to see how every decision you make matters to your greater financial wellness.
If you want to know more about setting financial goals, consider talking to our Retirement Information Consultants. They will help you understand your personal situation and how each decision fits into your overall financial plan. Email firstname.lastname@example.org or call us at 306-787-3170 to set up an appointment! We are here to help!