Setting Healthy Financial Goals

by Marcus

As a young person, managing your finances can be difficult. Having to pay monthly bills, file your taxes, and apply for loans can make managing your money very stressful. However, one way to stay on top of your finances and be prepared for the future is by setting healthy and realistic financial goals.

Why Set Financial Goals?

You may be wondering… Is it really necessary to set financial goals? For many young people the future seems distant so setting long term financial goals is oftentimes overlooked. It is hard enough to juggle everything that is presently going on in your life so worrying about the future seems pointless. I can assure you it is not.

In my experience, setting healthy financial goals is an essential step towards reaching long-term financial stability. Setting healthy financial goals can put you on a path towards success. When you set goals for the future it influences the way you act in the present. This means that if your goal is to buy a house in the future, your spending in the present will be affected by this goal. While financial goals may seem centered around the future they can actually help you manage your money in the present.

Tips For Setting Smart Financial Goals

When setting financial goals there are a few things that you should take into consideration. Below are some tips and strategies to setting smart financial goals.

Financial goals should be realistic and achievable. Goals are something you work towards and hopefully overtime something you achieve. If you find yourself struggling to reach the financial goals you have set then maybe you should rethink your goals. I like to start my goal setting small and work up to reaching bigger goals. I find that doing this helps me stay confident and motivated. Setting a goal that is unattainable or just impossible can actually cause you more stress and have a negative effect on your finances rather than a positive one.

When making financial goals you should figure out what is most important to you and why. Having a reason and motivation for setting a goal ensures that your goal is practical and right for you. Separate your financial goals into a list of most important to least important. For example, achieving your goal of paying off your student loans may be more significant than achieving your goal of saving money for a summer vacation. Know which goals have priority over others so that you can make healthy financial decisions.

Hold yourself accountable when setting financial goals. Find someone you trust that is willing to help you reach your goals and lean on them for advice or when you find yourself lacking motivation. Sharing your goals with someone you trust will help you be accountable for your actions. If you are supposed to be saving money for a new car but have been spending an exorbitant amount of money buying new clothes having someone remind you of your goals can make all the difference.