Setting financial goals is a great step toward improving your financial situation. Even if you are financially healthy, setting financial goals ensures you remain that way.
10 Financial goals to consider
Below is a list of ten financial goals. All of these goals can easily be broken down into manageable monthly goals.
The last three goals on this list are related to mindset and visualization. It is important to remember that our mindset is a big player in our financial success. Therefore, it is beneficial to include them in your overall process.
1. Create and review monthly budgets
Make it a goal to create a budget each month. If you are not already doing this get in the habit of setting aside time each month to review your previous monthly budget and create a new one. Make this a priority. Your financial health is just as important as your physical health, so treat this task as a checkup.
2. Track your spending
Tracking your spending is the best way to know exactly where your money is going. Make it a goal to track your spending. You can write everything down in a notebook, enter it into a spreadsheet, or use online money tracking resources. Even if you are doing well financially, tracking your spending regularly is a good habit.
3. Do not add to your debt
Not increasing your debt is a great goal. Whether you are working toward paying down your debt, you are already debt free or you don’t even want to think about your debt at the moment, make it a goal not to add to your debt.
4. Pay down debt
How much debt do you want to pay down this year? I suggest being specific. Don’t list”pay down debt” as a goal. List the amount you want to pay down.
Break that amount down into monthly numbers and create your budget accordingly. For example, if you want to pay off $12,000 this year then commit to paying $1000 per month toward your debts. Add that $1000 to your expenses in your monthly budget and monitor your progress.
5. Set up an emergency fund
If you don’t already have an emergency fund, commit to setting one up. Determine how much you need and then create monthly goals accordingly. Generally, 3-6 months of living expenses is suggested but do what feels comfortable for you.
6. Retirement savings
Are you saving for retirement? Make it a goal to review your current retirement savings plan and adjust any contributions accordingly. Talk to your advisor or your employer if you need assistance.
7. Financial goals can include fun money
Please don’t forget to have some fun. Even if you are over your head in debt or your earnings are just not where they need to be, you can set aside a little cash for some fun. We all need to enjoy life.
Be careful though and don’t go too far. I am not suggesting booking a lavish vacation and going into debt over it. Nope! But that does not mean you cannot do anything at all. There are plenty of fun things you can do that don’t require a ton of money.
Commit to setting aside a small amount each month for a fun summer trip. If you can swing $200 per month starting in January, then you have $1200 by early July. Setting a goal for fun can also motivate you to meet your monthly goals.
8. Keep your mindset in check
This goal may sound silly but it’s very helpful. Having a good handle on your money mindset allows you to notice new opportunities around you. It also brings awareness to any money blocks you have. There are two main parts to your financial health. How much money comes in and how much money goes out? Your mindset affects both.
9. Practice meditation and mindfulness
Make it a goal to practice some self-discovery exercises such as meditation and mindfulness. Are you wondering how meditation affects your financial situation? It quiets your mind and allows inspired thoughts to flow in. Maybe you will have a great idea for increasing your income? Or some inspiration to cut some of your expenses. You won’t know unless you try it.
10. Remind yourself of your vision for your financial goals
Dream a little and acknowledge what you want. Create a money vision board to motivate you or try journaling. Make it a habit to regularly remind yourself of your vision.
Summary of financial goals
Financial goals are the foundation of good financial health. The problem most people have with goals is sticking with them.
Be sure to create realistic goals that are achievable. You’ll want to stretch yourself a little but if the stretch is too far you may end up discouraged. You can always adjust. Start small and build up.
Breaking your annual goals down into monthly goals that you review regularly will help keep you on track. It is easier to achieve the goals when you chunk it down. Again, think small.
Get excited about your goals. If you are feeling like it is a chore than your heart is not in the right place at the moment and your motivation will be non existent. Find something that inspires you to take action to create and achieve these goals.
If you have any comments or questions, please reach out to me. I am happy to help.
Thanks for reading!
Stay balanced,
Jill