How to Set Financial Goals That Work for You

We talk a lot about staying well-informed and positive on the journey towards achieving your “financial goals,” but we haven’t talked much about establishing those goals in the first place.

For many people, the scope of “financial goals” is limited to paying down different types of debt. And while there is so much value in the freedom that being debt-free can provide, your financial goals can do much more than just keep you waiting for the day that your loan balance hits zero.

Here are some tips on defining your financial goals and getting on track to make them happen:

1. Establish a Financial Base

The base for every household’s finances should be a budget, an emergency fund, and a retirement savings plan. Evaluate your personal situation with these three pillars in mind.

Once these three funds are in place, you’ll be able to base the rest of your financial goals around them. Your budget should account for your fixed and variable expenses and your emergency fund should cover those same expenses for at least a few months. For more on retirement planning, check out our blog on establishing the right plan and tips for making the most of the options you have.

2. Outline Your Priorities

Make a list of all of the major things you want to see in your future. This list should include wants, needs, and anything that costs more than you’d spend on an average day. 

Whether it’s a wedding, a new car, renovations on your home, something extra for your loved ones, or vacations you’ve dreamed of, add them all to the list. This list is the bare bones of your financial goals. 

Don’t think too hard about this one! This is just the beginning of goal-setting, with a few simple steps that add more context to follow.

3. Be S.M.A.R.T.

“SMART” goal development is a concept attributed to George Duran that is now used as a key lesson in time management, money management, and effective leadership. Anytime you set a goal, whether financial or otherwise, make sure it’s:

• Specific (not simply a “yard remodel” but “new flowerbeds” with a definitive budget)

• Measurable (you can see that progress you’re making, whether you use a visual aid or check-in at regular intervals)

• Attainable (consider your financial base and set goals you can make happen)

• Realistic (don’t set goals that require unfair limitations for you to achieve)

• Time-Bound (set a date by which you want to achieve a goal, and stick to it!)

4. Dream Big, Small, and Everywhere in Between

Have as many goals as you want and make sure they’re not all a waiting game. 

A key part of making sure you stick to your goals is making sure there are some rewards along the way. If you’re putting in the dedication to make your long-term financial goals come true, you deserve the satisfaction of hitting some short-term goals along the way.

For example, if your dream is to take a month-long vacation in Europe, don’t deprive yourself of any other vacations for years. Plan small getaways in between so you can still enjoy life while dreaming of that bigger goal. 

Financial goals can be as large as paying off all of your debt or as small as buying that pair of boots you’ve been eyeing up. The more goals you set, the more potential for success you have!

5. Have Some FUN!

A lot of the discussion surrounding financial planning and goal setting can make the whole concept seem heavy and daunting. Setting financial goals is serious work, but it can also be enjoyable! 

Choosing goals that bring you a spark of joy is important. Paying off debt and reaching certain emergency savings goals is important, but adding in goals like a family vacation or new experiences matter.

If all of your financial goals feel like heavy lifting, achieving them can feel like work. You’re saving up to have the life you dream of, so make sure you enjoy it along the way!

6. Get a Little Boost

If you’re just getting started on achieving your financial goals, or would like someone to help you adjust a previous plan, make sure you have a professional on your side. 

While determining your financial goals is all up to you, making sure you’re working towards them in the most effective and efficient way is exactly what a financial planner can do for you. 

Now that we’ve gotten your goal-setting juices flowing, get started by setting your own financial goals! Make this a checklist that you sit down and complete alone or with your partner. 

It takes a lot of hard work to reach financial freedom, but knowledgeable professionals like our team at

Gretchen Rehm Financial can help. We love working alongside our clients to help make

their dreams come true. Book an appointment with our team to get started planning your financial future!