Achieve Financial Goals

Writing down your dreams and aspirations can help you clarify your goals and give you a sense of direction.  By putting a plan in place, you can set yourself up for success and have the momentum to see your dreams become reality.  Let’s look at some steps for creating a plan to achieve your financial goals.

Creating a Plan

Understand Your Cost

A few common goal categories include saving for a car, a vacation, a large appliance, or a down payment for a home.  You may have many other goals to add to the list, but make sure you estimate the amount needed for every goal.

Understand Your Timeline

Once you establish the cost for each goal, determine the timeline.  For financial goals like college or retirement, you may have many years to fund the goals.  For others, the timeline might be much tighter; for example, replacing an essential appliance might be needed within a few months.  Maybe some goals have a flexible timeline, like a vacation savings account that does not get used until you have enough to fund the vacation you’ve been dreaming about.

Determine How Much to Save Per Month

Be specific when setting financial savings goals and translate your goals into actionable budget items.  For example, if you know you will need to purchase a vehicle within a few years, divide your estimated cost by the number of months until the purchase.  If you want to take a vacation next year, divide the total cost by the number of months you have to achieve your goal.

Fund Your Goal

Incorporate Goal Savings into Your Budget

Set yourself up for success by taking the time and effort to create a budget that includes your goal savings and make it a priority to fund those goals every month.

Begin Saving According to Your Game Plan

The benefit of having a game plan is that you know where you’re headed and how long it’ll take to get there, and you can watch your progress each month as you save.

Adjust Budget & Goals

Life can have unexpected positive events, like a bonus, and possible setbacks, like a layoff or reduction in hours. Have a plan to deal with changes to get you back on track and to make adjustments if needed.

Over time, you may want to fine-tune your budget and possibly realign your goals. Revisit your game plan and goals frequently and keep them visible so you stay focused. Some people like to use a vision board or put them in a location where they see them daily.

Setting S.M.A.R.T. (Specific, Measurable, Achievable, Relevant, Time-Bound) financial goals can help you stay on track and make progress toward your desired outcome. When you set and achieve financial goals, you build momentum and confidence in managing your finances effectively.