Financial goals is more about the bigger picture when it comes to making sure your needs and wants are met. It should be the first thing you talk about with yourself regularly.
- What is a strategic financial goal?
- What are financial goals examples?
- What are the two different types of financial goals?
- How do you set financial goals and achieve them?
- How do you prioritize financial goals?
- What are short-term financial goals?
- What are long-term financial goals?
One thing that everyone can agree on is the value of financial security. In an uncertain economy, it is important to do all that you can to help solidify your financial future.
This begins with goal-setting strategies that will help you reach your goal. .
So whether any of your goals are
- Have bills paid on autopilot
- Buy a house
- Buy a car
- Build a pool
- Build a playground
And just about anything else, you need to set some goals and set up strategies to get there.
Why Set Financial Goal Strategies??
Just like with any other area of your life, goals give you a focus for your efforts. Without them, it is hard to plan for anything. In financial situations, lack of goals can lead to short-sightedness and inadequate funds for important things like college, retirement, and vacations.
Now that you know why you need to set goals, let’s think about this some more. What are the goals you have in your life? How will you reach them? This is where strategies come in.
My personal goals are to have cosmetic surgery to improve my appearance and buy a home with enough land to have both a pool and garden. My longer termed goals are to save enough for retirement and buy a home or two for rental revenue.
Think not just about this day or next month but in the long term; what do you want your money to do for you? It’s a good place to start.
What Are the Two Different Types of Financial Goals?
Short Term Goals: Anything you will be purchasing within the next 3 years.
- New Wardrobe
- Repairs for Home or Car
Long Term Goals: Anything that you will be purchasing that is 10 or more years out.
- Buying a Home
- Real Estate For Revenue
- Kids College
How do you prioritize financial goals?
Now that you have some ideas of what goals you want to obtain and some time frame attached to it, you need to prioritize them. What is most important to you? When do you need it by?
For me, my surgery will come first, it is something I have wanted and needed to do for the last 20 years, now I need to make it happen. Why I chose surgery over home ownership? I want to be sure the home I buy I will be satisfied with for long term. I have not found it yet, but I am still saving for it in the meantime.
How you prioritize will be different than mine and that is ok! Not everyone will agree with my own personal choice and I am ok with that and you should be OK with your own decisions too.
Financial Goal Setting – Write it down
When the details are just in your mind, they can get sketchy from time to time and that leaves you nowhere. Use a pencil so that you can change and modify them as needed. List them in no particular order but just get them down so you can keep on to the next step.
For my personal goals is cosmetic surgery, which is $12K and a home with a pool, roughly $300K is my limit. Those are short-term goals for me, long term is retirement. I currently have no debt, but I do over spend on things, random buying, impulse buying, the kids don’t help, they see, they want, I get ugh.
So, goal setting is not just writing stuff down. It makes you more accountable, you will have to get more strict with yourself. For me, I need to say no to many frivolous buying. We don’t more of anything. Knowing and understanding needs versus wants is important and will help you with your self-discipline.
Make Your Financial Goals Specific
What have you written down? If you wrote something like I want to buy a new car, this is way too vague. We all would like a new car. what type of car, year, model, and make helps and include your why.
How can you turn that into a strategy that you can actually implement in a timeline? Instead say, I would like to save $3,000 towards a new car by December.
Now, you have a timeline and a specific money goal.
The above goal can even be dissected into a smaller goal that is more manageable. If you are having trouble making ends meet now, saving $3,000 might as well be like saving a million bucks.
But, if you set a short and long-term goal to reach the ultimate financial goal, you can get your head around it.
Example: I want to save $500 every two months. I also want to meet a goal of $1,500 by mid-year. At the end of the year, I project that I will have saved $3,000 towards my new Lexus coupe.
See how when you break it down, it makes it more attainable.
Setting $25 per week into a savings account will add up to $1,300. This may seem like a little but you can either spend it carelessly or strategically. This could be used for any home inspections or other stuff I will need when I buy the house.
How To Make Room In Your Budget For Your Goals
Now comes the hard truth! Where are you spending your money? How are you spending your money? You can be more mindful of what you are buying but that does not usually help. When you create a budget, you are allocating each dollar to do something, which is working towards your goals.
If you are the type who “needs” your coffee, make it a habit to make it at home or don’t drink it at all. In my area, it costs $3.22 for a large coffee at Dunkin’ Donuts, if I bought 25 per month this means I am spending $80.50 per month on coffee!! You can make your own coffee for roughly $20 at home, saving you $60.50.
So, now that you are drinking coffee that you make at home, you are adding $60.50 to your savings goal. This equals $726 by the end of the year towards whatever goals you need to meet.
Where else can you save money? Take out foods is next for me, how about you? Is it easier, more convenient, yes but at what cost? A meal from McDonald’s where I live is $7.28 for the nugget meal. If I ate 10 of those a month, I’d be spending $72.80 for the month!! What if I bought a bag of apples or oranges for the ride home to eat until I can get home and make my own nugget meal?
So, as it stands, if I bought 25 coffees and 10 meals, I am spending $153.30 every month, by the end of the year, I am spending $1,839.60!!! Oh my gosh, that is half the payment for that $3,000 car you want, right?
What can you be spending $1,839.60 on instead of convenience?
List of Financial Goal Strategies
- Write Down Goals
- Prioritize Goals
- What Will You Cut Down On?
- Open Different Savings Accounts For Each Biggest Goals
- How Much Will You Save Every Paycheck
- Keep Track Of Spending and Savings
- Reach Your Goal
- Soak In the Rewards