Setting Financial Goals

In order to accomplish things you want in the future, you need to set goals.  Then start working on the tasks to reach those goals.  Perhaps it is to pay off a college loan, go on vacation, or save for college for your children.  Without goals, it is almost as if you are wandering aimlessly.

Setting Financial Goals

When setting financial goals, or any type of goals you want to create short-term, medium-term and long-term goals.  Short-term goals can be achieved in a day, week, month or even one to three years.  Medium-term goals can typically take about three to seven years to achieve, and long-term goals take eight or more years to achieve.

Long-term goals are usually broken down into several short- or medium-term goals that will help keep you move forward towards the main goal. However, short- and long-term goals do not have to always support long-term goals.  For instance, you can have a short-term goal of volunteering five hours this month in a homeless shelter.

Set your goals using the SMART method:

  • Specific: Goals are focused, not general.
  • Measurable:  Goals define exactly what you intend to accomplish.  You should have a vivid picture of your destination.
  • Achievable:  Make sure you goals are achievable by asking yourself, ” Do I feel I can accomplish this?  Is is realistic for me?”
  • Results-based:  Goals should be focused on getting to a specific destination and endpoint.
  • Timed:  Goals should have deadlines – clear dates when you’ll be able to say “I did it!”
One of your long-term goals is most likely securing funds for your retirement. If you are just getting started with saving for retirement, financial experts recommend you save 10-20% of your income for retirement.  The older you are, the more you should save – especially if you have not saving.
It is recommended that, in order to be on-track for retirement, you should have saved around one times their salary at age 35, three times their salary at age 45, and five times their salary at age 55.  However, it is never too late to start saving.  If you are starting to save late for retirement, do not worry there are things you can do to start catching up.  There is a great article from SmartMoney about “How to Catch Up on Retirement Savings (if You’re Starting Late)” that has a lot of great tips on how you can start off strong in your retirement savings.  One of them being to start out saving aggressively and put in the maximum yearly amount you can into your 401(k) and Roth IRA.
Starting your goals today for how you want your future to look.  If you are not used be goal-oriented, start reaching small challenges first to get you in a goal-setting frame of mind.  This will inspire you to work your way up to goals that require more time to complete.
Disclaimer: Information sourced from Genworth Financial.
 
About the Author

A Mommy blogger who loves working from home while raising her 9-year-old daughter and 5-year-old boy/girl twins with her husband. I have a passion for learning and enjoy anything having to do with the technical side of blogging. I am also always working on self-improvement and being the best mom I can to my children. I am also a bit of a coffee addict! ❤

Comments

  1. http://Jackie says

    I like your acronym – SMART – that works for more than just finances, for sure. As for finances, I definitely need to be setting some specific goals. Great post!

    I’m stopping by from the Biannual Blogathon Bash ( ) to welcome you. You recently signed up and I just wanted to say hello and to let you know that we’re excited you are joining us. I know you’ll get a lot done – it’s the most motivating weekend for sure. We’ll see you in January!

Share Your Thoughts

*

CommentLuv badge