Get Your Spending Under Control by Learning How to Set Financial Goals

Are you planning to set financial goals for the upcoming year? You’re not alone. According to a survey by Fidelity, about 43% of respondents wanted to save more money. Another 31% said they wanted to spend less money.

Like those weight-loss resolutions that everyone makes each year, financial goals tend to fall by the wayside pretty quickly. Next thing you know, you’re frustrated and back to your old behaviors.

If you want to make your financial goals stick for the entire year, you need to know how to set financial goals the right way.

Keep reading to find out what effective financial goal setting looks like.

1. Start Dreaming

Where would you like to be financially in six months to a year? What do you want your financial life to look like in five years?

The first step to setting financial goals is to create a vision for your finances. This allows you to play with possibilities and identify things that make you happy.

Start with your big dream and long-term vision for yourself. Work your way backward and identify the smaller goals that serve as benchmarks. Now make them realistic according to your current financial situation.

Here’s an example. You want to pay down your credit card debt by $5000 this year. Punch some numbers into a credit card payoff calculator and see how much you have to pay towards your credit card bills each month.

2. Prioritize Goals

Take all of those goals you set aside and make one long list. Divide them up between short and long-term goals. Now, look at the short-term goals.

Prioritize them so you only work on one goal at a time.

3. Start Small

One mistake that people make when setting goals is that they set a goal, and try to accomplish everything at once. That leads to exhaustion, burnout, and a failed goal.

Take one goal and break it down into smaller steps. Think of something that you can do every day to work towards your financial goals.

Over time, those small steps compound and turn into major results.

4. Get Accountability and Help

A personal trainer works wonders to help people see their weight loss goals through. Trainers provide accountability and support when you don’t feel like following through on your goals.

There are other professionals in the financial world who provide accountability and support. Financial planners develop a strategy for you to save money for a home, retirement, or whatever your financial goal is.

One of your goals might be to build wealth through real estate investing. This investment company can help you achieve that goal.

How to Set Financial Goals and Be Successful

Are you ready to beat the odds and achieve your financial goals? You just learned how to set financial goals that allow you to be successful.

Prioritize your goals, start small, and get support. You’ll be on your way to hitting your financial goals in no time.

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