It’s good to have a goal.
Goal-setting can be as simple as planning to cook more meals at home or calling your mother more often. Goals can be big, such as finally going back to school to earn that college degree. Or, they can be small yet still important, like getting into the habit of doing yoga once a week.
The best part about goals is that they are personal and malleable. The act of goal-setting can help you live your best life while changing for the better right along with you.
Whether the goals are personal or financial, they serve as a road map to success. If there is something you want to accomplish, such as saving for a down payment on a house, or a change you wish to make, such as creating a budget, setting goals helps you identify a path forward.
How to set financial goals
Setting financial goals can feel overwhelming at first. The big things seem out of reach and there are so many small things that it can be hard to choose where to focus your efforts.
With that in mind, here are some tips for how to set goals, be it for investing, retirement, or anything else you choose.
Brainstorm
Give yourself the freedom to consider anything and everything that you’d like to do with your money. Do you want to save a million dollars? Buy an investment property? Retire by age 35? There are no rules when it comes to brainstorming.
Write your goals down
Once you have selected the goals that speak to you the most, write them down. Put them in a spreadsheet, write them on a notepad, or send them to yourself in an email. The method of writing doesn’t matter, but the act of writing does. Writing down your goals makes them feel more concrete. This forms the start of your roadmap to financial success.
Tell someone
Talk to your financial planner about what you want to accomplish so they can help you form a realistic plan to reach your goals.
Be specific
It’s one thing to make “retire young” a general goal. It’s hard to plan for something that broad, though. Instead, try “retire at the same cost of living as today by the time I am 55 years old.” The first version feels impossible. The second version feels attainable.
Set yourself up to succeed
Your financial planner will help you turn your goals into measurable, attainable, and time-bound action plans.
Short-term goals
Some examples of short-term goals are paying off credit cards, improving your credit score, saving for a down payment on a house, or simply streamlining your expenses to find more money to invest.
Long term goals
Some examples of long-term goals include planning for retirement, becoming debt-free, and obtaining luxuries such as funding a relative’s college education, purchasing a retirement home or investment property, or funding a travel lifestyle.
How we will help you set goals
As your financial partner, we can help you craft a budget, devise a plan to pay down debt, and establish short and long-term goals. Bring to your consultation a list of your assets and liabilities, along with that list of financial and retirement goals mentioned above. If you’re not sure how to turn your big ideas into a manageable plan, do not worry. That’s where our expertise comes in.
Investing can feel overwhelming. There are so many types of investment products, stocks, options to save, and opportunities to spend. A professional financial action plan gives you a sense of accomplishment. It also provides a sense of control over your money and your future. Keep in mind that financial planning is never static. Your goals will likely change over time, just as you do. Your relationship with your financial planner is designed to help you manage those changes.
Financial and retirement goal-setting gives you peace of mind. With solid planning, you will be able to weather any financial crisis. Setting and working toward realistic goals will help you will rest easier knowing you have taken steps to ensure your financial security.