How To Set Financial Goals

How To Set Financial Goals

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Often when I speak to people about their financial goals they tell me things like “I want to save more,” or “I want to get out of credit card debt.”  These are admirable aspirations, but when it comes to goal setting we need to be more specific:  “I want to save $1,000 extra dollars over the next year to pay down my student loan debt.”  “I want to save $3,000 to go on my dream vacation next year.”  “I want to save $10,000 to get my business started.”   Having these numbers in our heads gives us a foundation from which we can build a blueprint, (aka) budget, to help us get there.

[Related: [Part 2] Setting Financial Goals: Where To Begin]

In addition, knowing what your goals cost — having that number in your head –  will  go a long way towards helping you curb your spending.  As I discussed with HLN’s Lynn Berry, however, it all starts with creating a vision of what your ideal life looks like.

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