Think about your future.
Think about how your life will look in 5 years, 10 years, 20 years.
Whether you see yourself in a big, fancy house with 2.5 children and 18 dogs, or travelling the world with little more than a rucksack, your finances will have played a part in making that happen.
That’s why it’s important to establish financial goals. By knowing what you’re working towards, you will find it easier to stick to your budget.
It’s easier to say no to going out, or that next round at the pub, or that nice dress you spotted, when you have a goal to work towards.
But not everyone’s goal is the same. What one person deems the ultimate life goal, another might shrug at. And the same goes for everyone’s individual financial goals.
Everyone is different and so your financial goal should be tailored to suit your needs.
What Are Your financial Goals?
Sue 28: I don’t really have any big financial goals. I guess my goal is to make sure I have enough money to go on holiday and still have some money left in the bank. I budget and save a bit each month to make that happen.
Dani 32: My goal is to save for a wedding and then the next property. Currently, I’m saving around £250 every month between me and me partner and we’re halfway to what we need for the wedding - with help from our parents.
Our goal is 9K but that’s without a security blanket so we’ll carry on saving after that. The hardest thing is stopping ourselves from our usual vices. Holidays are mine and designer clothes for my partner. It’s a mindset of ‘well we have x to save for so we’ll do without that luxury’ That’s quite difficult.
The best thing we did was realise how much the wedding was going to cost so we had a figure to aim for without doing it blind.
Sam 31: I recently purchased an engagement ring that I managed to save up for, therefore the next goal is saving enough money to give her the wedding she wants.
The easiest way for me to save is to strip back my spending for a period of time. During this time I try to only spend on the necessities and put my wants to the side.
Travis 26: I want to own my own home. As a freelancer, there are certain jobs I do that I don’t intend to spend the money. I have already put it away in my mind to work towards my financial goals.
Alex 25: My last goal was to get out of my overdraft. Now I’ve managed to get there - admittedly not by my hard-work but by a few fortunate windfalls - I want to build up my savings so I’m not living to payday-to-payday.
I’ve never had savings before so I usually get over-excited and put all my money in there and end up taking it back out before the end of the month. So I’m going to put in a little at a time. Slow and steady wins the race. I hope.
How Do You Chose Your Financial Goals?
So, how exactly do you choose what financial goals are for you? Look at what you want out of life and work backwards from there.
If you want a house, then think about how to get the money together to afford that. And if you cannot put money away every month look at your budget to see why you don’t have enough money to put towards savings.
How Do You Achieve Your Financial Goals?
Are you paying off multiple high-interest credit debts? Explore peer-to-peer loans as a means to consolidate all those monthly repayments into one low-interest one.
This will free up more money every month for you to put away into saving for a deposit or into your travel fund, or your emergency fund.
Are you over-spending? Make sure you create and (more importantly) stick to your budget.
If you can’t help resist those fun purchases - who can!? - use an app such as Money Dashboard or another budgeting app to see every purchase you make on your phone. This will force you to see where you’re spending too much.
Depending on your end goal, the little financial goals that make up your day-to-day should help you work towards that.
Tell Us Your Financial Goals…
We want to know what your financial goals are and how you work towards them?
Do you have a budget in place? Do you have direct debits set up or notifications to stop you overspending? We want to know how you’re planning for the future.
Let us know in the comments!