How to Make a Financial Goals that Works

[Yusra3]

1. Make A List Of Your Financial Goals

Your first step is to make a list of your financial goals. This will help you determine what you need and want to spend your money on. Some examples of financial goals include:

1. Saving for a down payment on a house

2. Saving for retirement

3. Paying off debt

4. Building up an emergency fund

5. Saving for a vacation

2. Determine Your Time Frame For Each Goal

Once you have made a list of your financial goals, you need to determine a time frame for each one. This will help you prioritize your goals and figure out how much you need to save each month to reach them. For example, if you want to save $10,000 for a down payment on a house in two years, you will need to save $416 per month. Or, if you want to pay off $5,000 of debt in one year, you will need to pay $417 per month.

3. Prioritize Your Goals

After you have determined when you would like to achieve each goal, it is time to prioritize them. Some people like to focus on the goal that will have the biggest impact on their life first, while others prefer to focus on the goal that is easiest to achieve. There is no wrong answer here. it is entirely up to you! If you are having trouble deciding which goal to focus on first, consider speaking with a financial advisor who can help you create a plan that makes sense for your unique situation.

 

[Etini]

One thing that people do when making financial goals is they don't set realistic goals. They set bogus goals that may never be realized. The first thing about setting financial goals is to face reality and set your goals accordingly. If you consider your income level and you know you can't buy a house in 1 year. Why set that as a financial goal?

Also, you would need discipline to meet up with your financial goals. You might have to forgo a lot of things to realize your financial goals. For some, it could mean giving up on the regular Sunday hangout with friends. It is not just about setting financial goals. Be ready to put in the work that would make those goals a reality. I know of so many people who make financial goals very often but never get them realized. To achieve anything, sacrifice is needed. You have to give up to gain.

 

[Abigael]

These are really good tips to attaining our financial goals. It is a process that requires good understanding, a good plan and discipline to stick to that plan. Without discipline all your plans will not work out, self control should be your stronghold then.

Awareness of your plans is the first step to resolution. You need to pen down what your financial goals are. Every goal is important as long as it adds something positive in your life. So don't ignore anything, less you will go around spending money without a plan.

Then you need to set your priorities straight. Here, I am glad that you have mentioned that there is no one option fits all. For some people, their priority could be the easiest achievable goal while for others, it could be the hardest things first. Define yours before going ahead.

I would like to add that you need to identify the methods you are going to use to earn that money. Then you can focus on earning there.

 

[Worldarmy89]

Awareness of your plans is the first step to resolution. You need to pen down what your financial goals are. Every goal is important as long as it adds something positive in your life. So don't ignore anything, less you will go around spending money without a plan.

 

[Shaf]

I have learnt over time that setting goals and actually achieving them 100% is something most people struggle with. It also affects me especially when it comes to financial goals.

One thing I've learnt that is you should set goals based on what you can actually do and save. This is key because if you set goals that you know will be extremely difficult to achieve, you have already set yourself up for failure. Keep in king that emergencies may come up and require that you spend more money than you planned for.

I also like being accountable. Most of us have little discipline if we hold money ourselves. If you have some penalty for reckless spending, especially if it's from a third party, you will be more cautious with spending.

Someone I know designated special savings accounts for almost all key areas of his life. He only spends about 19% to 20% of his income.