How To Start Setting Financial Goals

Table of Contents

It's never too late to start setting your financial goals. Read about the must-haves before you create your financial goals.


So, let’s get to work.

Identify your top financial goals

Start with identifying your five top financial goals! Yes, you are reading this correctly; you need to have at least five financial goals but let me help you with some ideas. 

One of your top goals should be investing for retirement through your employer sponsor programs such as 401K, 403B, 457, TSP, etc. However, if you are an aspiring entrepreneur or an existing one, you can also open your retirement plan by using a few accounts, such as a solo 401K or a Roth IRA. Make sure to always check with your account and other professionals to help you ensure you choose the proper account.

Make a list of your financial goals.

The following financial goals should be determined on your time horizon and personal goals. For example, let’s say you want to purchase a home in the next five years, pay off student loan debt, go on a dream vacation, and have passive income. Your financial goal list would look like this:

  1. Investing for retirement
  2. Purchase a home
  3. Pay off student loan debt
  4. Going on Dream Vacation
  5. Passive Income

Create systems for your dinero

The next thing you need is systems for your finances, and a great way to do that is by having more than one bank account. Traditionally we have been taught or told by our parents to have only one or two accounts, but believe me, you want to have more than that. 

Create SMART financial goals

What are SMART goals?

Here is what having smart goals means: 

Specific: Well defined, clear, and unambiguous.

Measurable:  With specific criteria that measure your progress toward accomplishing the goal.

Achievable: Attainable and not impossible to achieve.

Realistic: Within reach, real, and relevant to your life purpose.

Timely: With a clearly defined timeline, including a starting date and a target date. The purpose is to create urgency and help you stay committed.

Let’s bring those goals back, shall we?

  1. Investing for retirement -Let’s assume you want to retire at the traditional retirement age of 65 years old. 
  2. Purchase a home-In the next five years. 
  3. Pay off student loan debt- In the next seven years
  4. Going on Dream Vacation- Dec 2025
  5. Passive Income- 

Rewrite your financial goals using the SMART framework

Once again, rewrite your goals using the SMART guidelines above.

Here are my two examples to help you.

“I will start investing $200 a month toward retirement starting June 2022 for the next 30 years.” 

 “I will save $300 for a downpayment of my dream home starting Sept 2022 for the next five years.”

“I will pay $250 a month towards my student loans starting June 2022.” 

“I will save $75 a month towards my dream vacation starting May 2022.”

Ok, you get the idea here and how you make these financial goals come to fruition is by creating tiny habits and paying towards these goals every month. So budget for your financial goals every month, and remember, a budget is not a contract; it’s a roadmap you can use to create financial freedom and live a life beyond your ancestor’s wildest dreams.

Everything good in life takes time, and it is crucial to stay committed to your journey. So adopt these financial habits now and slowly create your financial vision. For example, when you make your budget, you may find out that you don’ have enough money to fund all of your financial goals, and the first thing you might be thinking is, “I need to cut expenses,” but don’t instead increase your income by downloading my free passive income guide. 

Stay committed to your financial goals

Remember, small habits take time, and once you reach one of your financial goals, make sure to start a new one. If you have tried to budget in the past and it isn’t working, need help creating your financial vision, or need help creating the systems for your dinero, feel free to schedule a call with me and see if we are a good fit for each other. 


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