The Importance of Setting Financial Goals (And How to Do It)
The Importance of Setting Financial Goals (And How to Do It)
Turning intention into action, one step at a time.
It started with a small notebook.
Just a blank page and a pen. I was tired of feeling like my money had a mind of its own — always coming in, always going out, and never quite doing what I wanted it to.
So I sat down, took a deep breath, and wrote:
“I want to feel in control of my finances.”
That sentence became the beginning of a journey I didn’t know I needed. What I discovered along the way is that setting financial goals isn’t about being perfect with money — it’s about being purposeful.
Why Financial Goals Matter
Think of financial goals as a roadmap. Without them, you're just driving around, hoping you’ll end up somewhere good. With them, you’re headed in a direction that’s aligned with your values, priorities, and dreams.
Here’s what happens when you set clear financial goals:
💡 You make better spending decisions.
💪 You feel more motivated to save or invest.
🎯 You stop comparing yourself to others and start focusing on what you want.
🧭 You gain clarity during uncertain times.
Financial goals turn your money into a tool — not a source of stress.
How to Set Financial Goals That Stick
1. Start With Your “Why”
What do you want your money to do for you? Maybe it’s freedom from debt, the ability to travel, or peace of mind knowing you’re saving for retirement. Write down what matters most to you — no filters, no shame.
2. Be Specific and Realistic
“Save more money” is vague. “Save $200/month for a vacation next summer” is specific and measurable.
The clearer the goal, the more likely you are to stick with it.
3. Break It Down
Large goals can feel overwhelming. Break them into smaller, manageable steps. For example:
Big goal: Pay off $10,000 of credit card debt
Mini steps: $500 monthly payments, stop using the card, find $100 to cut from monthly spending
4. Use Short-, Mid-, and Long-Term Goals
A healthy financial plan includes a mix:
Short-term: 3–12 months (build an emergency fund, pay off a small loan)
Mid-term: 1–5 years (save for a home, start investing)
Long-term: 5+ years (retirement, financial independence)
5. Track Your Progress
What gets measured, gets managed. Use a spreadsheet, an app, or a notebook — whatever keeps you engaged. Celebrate milestones, even small ones.
6. Revisit and Adjust
Life changes, and your goals might too. Check in regularly to see what’s working, what’s not, and how your priorities may have shifted.
What Happens When You Set Financial Goals?
You stop drifting and start directing.
You move from feeling reactive with money to feeling proactive.
And maybe, just maybe, you start believing that the future you dream about is possible.
A Final Thought
Setting financial goals isn’t about being rigid. It’s about creating space for your values to show up in your financial life. It’s giving your money purpose.
If you’ve ever felt stuck, overwhelmed, or unsure where to begin — start by asking yourself this:
“What do I want my life to look like, and how can my money support that?”
From that one question, real change begins.
Setting financial goals gave me a sense of clarity I didn’t know I was missing. I wrote this guide to help you feel empowered, not overwhelmed — because when you give your money direction, it starts working for you.
Kerry Rizzo