We all have something we imagine for our future. Whether it be a downpayment for a home, paying off student debt, or simply wanting a cruise to the Bahama for some R&R, these can all be too expensive to pay out of pocket. Setting financial goals can help you do the impossible, but how do you go about setting and accomplishing these goals?

What are Financial Goals?

Financial goals are benchmarks for saving, investing, or spending that you want to meet over a certain period. What kind of goals you want to achieve usually depends on what stage of life you’re in.

For example, a short-term goal would be saving for new running shoes, while a long-term goal would be moving from renting to purchasing a home. Other common financial goals include preparing for a child’s college education and investing for your retirement.

Regardless of your financial goals, you need to hold yourself accountable and remain focused until you reach your goals!

3 Steps to Setting Financial Goals

Here’s how you can set financial goals for yourself and your family:

Step 1: Write Down Your Goals

Having your intentions written down for you to see makes your goals more likely achievable. Be specific when you write down your goals and make sure they’re achievable. Having your goals written down will help you stay focused and committed to the goal.

Once you’ve written down your financial goals, stick them around the house, such as on your bathroom mirror, refrigerator, or car’s dash!

Step 2: Your Goals Must be Measurable

Having a goal means you are working towards something. Your financial goal should have an amount that you’re working towards. So, consider how much you need to save for each financial goal written down.

Let’s look at an example. You have a debt of $10,000 you want to pay. Before you begin, you will consider your budget and affordability. You will then know how much you must pay towards your debt to reach your financial goal of $10,000. This makes your goal measurable!

Step 3: Set a Deadline

Having a deadline for your goals is essential. Knowing your financial goal and deadline will help determine how much you need to save each month. This will also help with your budget planning.

For instance, if you have a vacation in 6 months and want $3,000 for your trip, you will need to save $500 per month to achieve your goal. If you have a bigger goal, break it into small achievable goals to keep you motivated. Stop saying “someday” and start today!

Setting financial goals can be daunting, but once you have them written down and create a plan with your budget, you will be setting yourself up for success. Having a goal will alter your perspective on money and improve your daily spending habits. You’ll begin to notice how each decision affects your overall financial well-being.

Find small sacrifices you can make right now to put yourself up for financial stability. How you handle your finances today will impact your financial future.