Landing your ideal job. Getting fit. Winning Bake Off. Watching the Star Wars saga back to back. We all have life goals. And no matter how big or small they are, there’s nothing quite like the satisfaction of achieving them.
But what about when it comes to your money? Are you as clear about your financial goals as you are your life ones?
Naturally, the exact nature of those goals is different for everyone. And they depend on a whole host of factors – from your overall financial situation, job and home life to your personal motivations and your age.
But whatever your circumstances and whatever stage of life you’re at, knowing where you want to be monetarily and how to get there is important. Here are five top tips for setting your financial goals – and sticking to them.
Of course, you have to know what your financial goals actually are in order to achieve them. So take the time to make a plan. Then, when you have that plan, write it down. Whether you use pen and paper or take a more digital approach via a personal finances app, this will help keep you focused and on track. Find little ways to reward yourself when you tick a goal off too – you deserve it!
Setting yourself unattainable financial goals is a recipe for stress. It can also suck the fun out life if you’re trying to save too hard or, at the other end of the scale, cause you to overspend on something before you can actually afford it. So, by all means aim high. But ask yourself if buying your own Caribbean island is a realistic target before committing to it.
For some of us, a financial goal might mean saving for a major life event in future, like a wedding, holiday or retirement. For others, it’s about using our hard-earned salary to treat ourselves to something we’ll enjoy in the here and now. Ideally, you should aim to have a combination of both short and long-term aims. That way, you’re more likely to balance the fun of living for today with the responsibility of planning for tomorrow.
More often than not, the price of stuff goes up over time. Whether it’s a new pair of shoes for the work Christmas party or a dream summer holiday, be sure to account for inflation if you’re saving for something big. This is especially important if you’ve got a set deadline by which you want and/or need to buy it.
It’s important to have financial goals and stick to them. Yet, equally, life doesn’t always go to plan. If you have a change in circumstances that means you fall short of your goals every now and then, don’t beat yourself up about it. But don’t give up either. Just re-set accordingly.
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