Tips for Setting Financial Goals

Saving money for purchases is something that’s been going on for as long as there’s been money. It doesn’t matter if you’re a 10-year-old who wants a new bike or a grown person saving for a house, all of us have experience attempting to save for things that are beyond our financial reach at the moment. 

Once you’ve figured out what your financial goals are, you can determine if you can finance them on your own or if you might need a few loans to help you achieve them. You need to know what you want to achieve before determining how long it’ll take and the steps to get there. Here are a few tips to meeting those goals a bit more quickly.

What Matters

When it comes to your financial goals, be they a bit of home maintenance, some vehicle repairs, or anything else, determine what it is that matters the most to you. When you’re doing this, put all things, from the pressing and practical to distant and whimsical on the table to be inspected and weighed. 

Priorities

Once you’ve got everything unpacked and know what your various goals are, figure out your priorities. Things like an emergency fund, while important, don’t go ahead of things like food, for example. You also need to determine which goals are within your grasp soon, what might take a bit longer, and what needs more of a long-term strategy.

Strategize

It doesn’t matter if you’re saving for retirement or to fund your next vacation, it’s a good idea to use what’s known as the SMART strategy to reach those goals. Your ambitions should be SMARTSpecific and Measurable, Achievable and Relevant, and finally, Timely.

Budget

You hear this all the time, but that’s because it’s so important. You need to have and stick to a budget. You need to know every penny that comes in from your regular job, your side hustle, and anywhere else, as well as every penny that goes out. You need to know where it goes too. Use this knowledge to tweak your budget so that you can meet each of your financial goals.

Leftovers

If you’re lucky, your realistic, tight, overly strict budget will begin to have at least a few dollars left over at the end of each month. It doesn’t matter what the amount is, have it automatically deposited into a savings account that’s specifically designed to meet your first few financial goals.

Progress

Pay attention to the progress you make. Ensure that you’re actually hitting a benchmark here and there. If you aren’t, it might be time to take a look at everything in order to determine what exactly went wrong.

Bonus

Finally, there are all sorts of resources out there that can help you stay on track. Financial apps that are meant for tracking goals can be particularly helpful. Technology gives us things like goal ticklers, alerts, and even prompts that we can use as a sort of road map.

Don’t forget about the old-fashioned methods too though. Tape a picture of yourself that symbolizes meeting one of your goals to the door of your refrigerator. It might be you on a secluded beach symbolizing retirement, or even you standing in front of a nice home. Something that you can use as a visual stimulus.

If you can see it, you can also believe in it. Such as getting out those old high school pictures to prove what you used to look like in order to motivate yourself to lose weight. Whatever you use to help you meet your goals, it’ll be worth it.