Setting Goals for Financial Success
Give your money direction with clear financial goals.
Why Do You Need Goals?
Before you make any financial decision, you need to know what you are trying to accomplish. Have you ever seen a building project left unfinished? No one starts building with the intention of never finishing. In the same way, if you want to build a stronger financial future, you need a clear direction.
Goals give you a framework for making intentional decisions instead of emotional ones. Without clear goals, you do not direct your money. You just react to whatever is in front of you. You buy the ice cream because it is there, buy a promotion because the price looks low, or finance a new motorcycle because the dealer says, “Zero Down.”
What Makes a Good Goal?
Good financial goals should be clear, measurable, realistic, and have a deadline. A clear goal tells you exactly what you are trying to accomplish. A measurable goal lets you track your progress. A realistic goal fits your actual income, responsibilities, and season of life. A goal with a deadline creates urgency and helps turn good intentions into action.
Examples of Weak Goals
Examples of Good Goals
Goals Don't Always Need Math
Financial goals don't always need math. They might need to reflect a change in behavior.
Do you struggle with your favorite coffee shop? I do! I love the ambiance, the cozy seats, and the smell of fresh coffee. It's as if the store is calling to me, "Come drink my overpriced coffee!" Maybe my goal should be: "I'm going to replace my coffee shop habit with my own home-brewed coffee to free up more money in my budget for paying off debt."
Do you struggle with impulse buys on Facebook Marketplace? Maybe your goal needs to be to delete the Facebook app for the next three months to help you with your self-control.
Do you have a hard time saying no to your little brother when he asks you for money, even though you know he's wasting it? Maybe your goal this year needs to be to stop giving your brother cash and find other practical ways to help him.
Don't Go It Alone
You don't have to pursue your goals alone. In fact, accountability increases your chance of success dramatically. Tell a mentor, a friend, or anyone who cares about your success. Let them help you stay accountable to your plan. Maybe you could schedule a check-in meeting every month.
Write Your Own Goals
Write your goals down and put them somewhere you'll see them. Don't type them and hide them in a file on your computer. Stick them on your bathroom mirror, your desktop background, or your refrigerator.
Download some sample goals and the goals worksheet to get started on your own goals. Here are some questions to get you started:
- Do I need freedom from debt?
- Do I need to learn a new skill to increase my income?
- Do I need to save for a vehicle instead of borrowing?
- Do I need to start saving for my children's education?
- Do I need to change a daily spending habit?
- Do I need to take better care of my health? (A healthy body saves money on medical bills.)
Try the Goal Analyzer
Need help writing your goal? Type your goal into the Goal Analyzer below and you'll generate a suggestion for making it stronger.