How to Set Financial Goals
Setting financial goals is important for everyone, but it can be especially challenging for young professionals. After all, you're just starting out in your career, and you may not have a lot of money saved up. That is why it is crucial for you to start early and develop good habits based on your goals.
You may be wondering: I thought that this is about “the little things”, isn’t setting financial goals a big deal?
Yes, setting financial goals is a big deal, but let’s break it down into smaller pieces and take it one step at a time. Here are a few things to consider:
- Start by setting short-term goals.These could be things like saving up for a down payment on a house, paying off debt, or saving for a vacation. Once you've reached your short-term goals, you can start setting longer-term goals, such as saving for retirement or investing for your child's education.
- Be specific and measurable. You may have heard the term “SMART Goals.” This is what we are talking about here. When you set a financial goal, make sure it's specific and measurable. For example, instead of saying "I want to save money," say "I want to save $1,000 in the next 6 months." This will help you stay focused and motivated. It also makes its easier to track and record progress.
- Set a deadline. Having a deadline will help you stay on track and avoid procrastination. For example, if you want to save $1,000 in 6 months, break that down into smaller goals of saving $166 per month.
- Track your progress. It's important to track your progress so you can see how you're doing and make adjustments as needed. There are several ways to track your progress, such as using a budgeting app or spreadsheet.
- Don't give up. There will be times when you feel like giving up. But it's important to remember why you set your goals in the first place. Keep your goals in mind and stay focused on reaching them.
Doing the little things to the best of your ability can make a huge impact on setting financial goals. In this way, you can avoid getting overwhelmed by the bigger tasks.
In addition to these tips, I think that it is important to take a step back if you are having trouble coming up with your goals. It helps to get your ideas straight and sometimes that is the hardest part.
First, ask yourself what is important to you? What kind of life do you want to live? Do you want to travel? Get married? Buy a house? Start a business? Fund your children’s education? Once you know what's important to you, you can set goals that will help you achieve those things, even if they are small at first. What do you value?
Second, don't be afraid to dream big. Take the things that you value most and make that your priority. If you want to achieve something great, you need to set ambitious goals. Don't set limits on yourself. Believe in yourself and your ability to achieve your goals. Set the bar high.
Finally, don't be afraid to ask for help. I have found that many people can tell me what they value and their goals, but one of the most difficult parts is how to get there. Don't be afraid to ask for help from a financial advisor, or maybe a trusted friend or family member. We can offer guidance and support as you set your goals and give you the tools to work towards them!
Starting with the basics have always helped me reach my bigger goals. I often take steps one at a time so that I do not feel overwhelmed by the task at hand. When you take a step back and examine your work, you will realize the progress you have made and have a better sense for how to move forward.
I hope to give you some of those tools through this blog. Feel free to reach out if you have any questions about setting financial goals or how to achieve them!
All the Best,
Gil
Any opinions are those of Gil Brandon and not necessarily those of Raymond James.
This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Raymond James Financial Advisors do not solicit or offer residential mortgage products and are unable to accept any residential mortgage loan applications or to offer or negotiate terms of any such loan. You will be referred to a qualified Raymond James Bank employee for your residential mortgage lending needs.
