Financial goals are the specific monetary amounts you're committed to obtaining that will allow your vision for life to come true. As with any goal, financial achievements should be aligned not only with what they are but also with how far along this path is and where it's headed next - whether these plans include putting children through school or paying off debt so someone can retire comfortably without being reliant on income from their job alone. Achieving our long-term objectives often requires us to make sacrifices now in order to ensure success later down the road.
Your goals should be defined as Specific, Measurable, Attainable, Relevant, and Time-bound (SMART).
Monitoring your progress is the key to success. If you amended today's goal of "raising credit score" with one that aims for an improved 680 by 25 points over the next 12 months, then this would give you plenty more opportunities on how much has been accomplished and what needs work still before reaching the desired result!
Set 3 types of financial goals?
Short-Term Goals
Your short-term goal should be something that you can afford in the near future. For example, if your salary is not programmed to go up until next year but there's an opportunity for a home renovation coming soon then this might make more sense than saving all of those extra funds towards travel plans abroad because at least with renovations happening right around town they'll come cheaper and faster!
Mid-term goals can be anything from saving up for an annuity that will provide you with lifetime income or improving your credit score. Intermediate-term endeavors include all sorts of things, such as obtaining the capital necessary to start a business on your own!
It is often more focused on financial issues like saving up for retirement or getting out of debt. These may include things you didn't think possible when first starting your journey but could actually make life easier in the long run.
Long-Term Goals
Long-term goals are usually more abstract, such as ensuring financial security in retirement or paying off your mortgage. These longer-term objectives can be broken down into shorter measured progressions to make them seem less daunting and allow you the satisfaction from seeing steady gains every day toward achieving success with these larger dreams.
The process of writing down your financial goals and then reviewing them regularly is an effective way to ensure you achieve the win-win outcome that money desires - more cash in hand, or at least not too far away.
Setting financial goals is a great way to improve your life. The more specific and realistic you can be, the better chance that these desires will come true!
