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How to Set Your Financial Goals

by Violet WillettDecember 21, 2021
How to Set Your Financial Goals

Setting financial goals is the first step towards achieving your dreams. It’s a way of working out what you want and then figuring out how to get it. Financial goals can be anything from saving up for that new car or planning for retirement. Whatever it is, we have an expert opinion to set your financial goals.

Step by Step

Financial goals should be set in a step-by-step process. Firstly, one needs to find their base or where to start from. For example, How much did you make last month? From there, depending on funds or time to scale, set a financial goal that suffices the time and money you can sacrifice to spend for next month, every 6 months, or yearly. In effort, time and money is the sacrifice in order for growth.

Tyler Bly, CEO, Better Burial Insurance Today.

Understand The Situation

When it comes to setting financial goals, you first need to understand that everyone's situation is different. Therefore you shouldn't compare your goals to someone else's and think that yours are wrong.

If you set several big goals, it is likely that you won't achieve some of them as you may lose focus and stress.

Therefore you should figure out what your end goal is - be it early retirement, buying a house, etc. Then, set smaller, incremental goals that you can gradually build up to it."

JamesBanerjee, Finance Expert, Dartford.

Have Achievable Goals

I have been doing goal setting for the different aspects of my life for the past decade or so. This includes financial goal setting, which has helped me tremendously. It is important to have achievable goals, and a clear time period in mind.

Start off by writing down at least 5 specific financial goals that you aim to achieve in the long-term, mid-term, and long-term spectrum. It also helps to invest as early as you can to help grow your capital. Learn about stocks, bonds, and even cryptocurrency, as these can be great investment channels if done the right way.

EmilyCooper, Founder, Oliver Wicks.

Realistic Expectations

Be realistic about what you want to achieve: How much money do you need to make, and how quickly do you want your business to grow? If you're not sure of the answers, it's important that you find out. To figure this out, ask yourself these questions: How big is my market? What are similar companies doing in the same market? If I were to succeed, how big would my business have to be? Answering these questions will allow you to determine your real financial goals.

Set attainable small targets that are incremental steps towards your overall target: For example, many businesses set a goal of sales of X by this date without taking into account the size of their own market. This is a dangerous way to set goals because if you misjudge your audience size, then no matter how much effort you put into marketing and advertising, sales will be low.

Understand the effort required to achieve your goal: If you want your business to grow quickly, then you have to be prepared to put a lot of effort into promoting and selling. If not, don't set a goal that is too ambitious.

Consistency is key: Whatever the case, you need to set yourself up for success by making sure your financial goals are achievable. If you can do that, then there's no reason why you won't achieve what you want in business.

Imran Anwar, CFO, Epos Now.

Have Set Date

I've always found it hard to achieve financial goals if they aren't sensitive, both personally and when it comes to getting results for people. Having a vague future date as your objective gives you plenty of excuses and justifications for not doing what's necessary to meet that

goal. Set yourself up for success by narrowing down a date. It doesn't have to be a specific day, but at least start with a workable range.

It's easy to look around at what other people are doing and feel obligated to do the same. But when we start comparing ourselves to others, we're playing a losing game. Any financial goal I set for myself or help others set for themselves is always informed by what I think is the best option for the person. Just because your friends are getting second mortgages to refurbish their kitchens doesn't mean you should. Put on your blinders, stay in your lane, and cross your own finish line.

Donny Gamble, CEO, Retirement Investments.

Separate Savings Account

A simple tip that everyone should practice to set their financial goals is to have separate savings account that you do not touch for anything. You place 10% of all earnings in this account, whether that be birthday money, salary, anything that comes your way of a check or money.

10% goes into this account to continue to grow. This is your nest egg, this is your rainy-day fund, God Forbid, something was to happen in your life's journey you have something to hold you over and get you through. 

Watching your financial goals grow in this way is beyond satisfying.

Lisamarie Monaco, Entrepreneur, Pinnacle Quote.

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