Member-only story
The Power Of Financial Goal-Setting
Unlocking Success
In the hustle and bustle of daily life, it is easy to let our financial aspirations take a back seat. But the reality is that money matters.
Regardless of whether you are dreaming of a cosy retirement or just want to avoid eating instant noodles every night, setting financial goals can help you turn your dreams into reality.
Types Of Financial Goals
Before we look at financial goal setting, let us identify the different types of financial goals.
Understanding these distinctions can help you tailor your approach to your unique aspirations:
1. Short-Term Goals:
These are the quick wins, usually achievable within a year.
This might be building up your emergency fund, paying off small debts, or saving for a weekend trip.
Short-term goals keep you motivated with their immediate rewards.
2. Medium-Term Goals:
The next step would be medium-term goals. These could include funding a college education or saving for a down payment on a house.
Medium-term goals typically have a timeframe of 2–5 years.
They require a bit more commitment and planning but bring you closer to those significant life milestones.
3. Long-Term Goals:
Long-term goals include retirement, your children’s education, or that dream world tour — and they all stretch beyond the five-year mark.
Patience is key here, and starting early gives you a substantial advantage.
Setting SMART Financial Goals
Now that we have categorised our financial dreams, let us talk about setting goals that don’t just sound good on paper but are actually achievable.
Enter the SMART criteria — a practical framework for goal setting:
