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The new year is a time for fresh starts, but by the end of January, many people struggle to stick with their resolutions – especially financial ones. Whether working on saving for a big purchase or planning for long-term security, having clear, actionable financial goals is key to staying on track. Here are the basics behind setting goals and making them last. 

What Are Financial Goals?

Financial goals are specific objectives related to managing your money. They can include saving, investing, or paying off debt, and they fall into two main categories: short-term and long-term. Below are some examples of financial goals.

Short-Term Goals (Typically Achieved Within a Few Years):  

• Building a $1,000 emergency fund.
• Paying off a credit card balance.
• Saving for a vacation.

Long-Term Goals (Often Takes More Than Five Years to Achieve):

• Saving for retirement.
•  Paying off a mortgage.
• Funding a child’s college education.

By breaking your financial objectives into these categories, you can better approach them and allocate resources effectively.

What Makes a Good Financial Goal?

A good financial goal follows the SMART framework. This means they are specific, measurable, achievable, realistic, and time-bound. The below examples show how to adjust common financial goals to fit this framework.

Short-Term:

• Save $200 monthly for six months to build an emergency fund.

Long-Term Goals:

• Invest $500 monthly into a retirement account to reach $300,000 in 20 years.
  
  

SMART goals are great because they set you down the path toward success, and help you track your progress.

How Do I Keep My Financial Goals? 

Many financial resolutions indeed fail. It’s easy to lose focus as the year progresses and life gets busy. Additionally, unexpected expenses can derail your progress if you don’t have a flexible budget. Here are some strategies for staying committed. 

Top Tips:

• Identify your biggest financial pain points. Whether it’s overspending, debt, or inconsistent savings, pinpointing the root of your struggles can help you create a more effective plan.
• Write your goals down and place them somewhere you look at often, like your fridge or workspace.
• Share your goals with a spouse, family member, or financial professional who can help keep you accountable.
• Set up automatic transfers to a dedicated savings or investment account.
• Review and adjust your budget monthly to ensure your financial plan aligns with your current needs.
• Acknowledge hitting milestones with small rewards, like a little treat after paying off a credit card or a guilt-free splurge when you hit a savings goal.
• Reassess your priorities annually and change any goals that no longer reflect them. 

Staying committed to your financial goals requires consistency, flexibility, a proactive mindset, and a good plan.

How Do I Create a Good Financial Plan?  

Achieving your financial goals starts with a solid plan. These steps will get you started.

Assess Your Current Finances:

• Review your income, expenses, and debt.
• Identify areas where you can cut costs or save more.

Set Priorities:

• Focus on high-impact goals like building an emergency fund or paying down high-interest debt first.
• Avoid overloading yourself with too many goals at once.

Create a Budget:

• Review your income, expenses, and debt.
• Identify areas where you can cut costs or save more.

Track Progress:

• Set check-ins to review your progress monthly or quarterly.
• Adjust your plan as needed to stay on track.

Finally, it’s a good idea to seek guidance. Consider working with a financial professional for expert advice tailored to your situation. 

How Can The Wealth Conservatory Help Me Achieve My Financial Goals? 

Entrusting your financial future to someone else can feel intimidating, especially when they focus on managing your money more than understanding your goals. That’s why The Wealth Conservatory’s fiduciary financial advisors start with a stand-alone, fee-based consulting project tailored to your immediate concerns.

Benefits of Our Unique Process:

• Experience personalized advice without a long-term commitment.
• Gain clarity on your financial priorities and next steps.
• Decide whether our expertise and approach are the right fit for your needs.

After completing the consulting project, you can implement our recommendations independently or partner with us long-term. 

Financial goals are the foundation of a secure and fulfilling life. Whether you manage your assets or enlist our services, we’re committed to helping you gain the confidence to take control of your financial future. Contact us today to start your journey with a stand-alone consulting project!