How to set financial goals?

If you don’t know how to set your financial goals, let’s help with some basic tips. Check where to start.

How to set financial goals?

set priorities

After all, what is most important to you when it comes to “things money can buy”? Start by thinking about this question and taking the time just to list your desires.

The list is likely to be quite long, but the idea is precisely to have a comprehensive view of your goals to be able to set priorities.

Obviously, we can’t buy everything we want, as money, most of the time, is limited. So, prioritize goals that really make sense in your life and that fit in your pocket .

set deadlines

Every financial goal needs a deadline to reach — otherwise, you’re unlikely to reach it. So, the next step is to organize your goals according to the period needed to achieve them (short, medium or long term).

For example, your main goals may be to save money to change your cell phone in 3 months, change your car in 1 year and buy a house in 5 years – it all depends on your priorities set earlier.

have everything calculated

In addition to knowing when you want to accomplish your goals, you need to know exactly how much they will cost. That’s because a financial goal only works if you have numbers in mind.

Set how much to save per month for financial goals

Finally, the most efficient way to achieve your financial goals is to define a monthly amount that should be saved, distributing this amount among your goals.

For example, assuming you have the first three goals of the previous example, you can start by putting together the R$ 2 thousand to pay off the debt for 3 months, then immediately start collecting the cell phone money and, after 5 months, start the savings for the car.

How to achieve your financial goals?

Here are some fundamental tips for you to achieve your financial goals, whatever they may be. Check out!

get rid of debts

It’s impossible to think about achieving financial goals if you have outstanding debt. Therefore, the first goal of all should be to pay off debts, so you can start saving money for your real purposes.

That’s because, if you let the pending issues roll, the interest will increase the values ​​more and more and worsen your indebtedness.

Organize your budget for financial goals

Personal financial organization is essential to achieve your goals in any deadline. This means having a structured control of your monthly income and expenses, as well as a pre-defined budget for all your expenses.

save every month

The only way to achieve financial goals is to save an amount every month on a consistent basis. With the pots method and the 50-30-20 method, for example, you set percentages of your income to save monthly, which vary between 10% and 20%.

Obviously, the more you can save, the faster you’ll reach your goals.

invest your money

In addition to saving money, it is important to make investments to maintain your purchasing power and multiply the amount invested . After all, why would you let your money sit and lose value if you have the option to invest it and earn income?

Today, you have several options with different degrees of risk and returns to keep your money invested in the short, medium and long term.

Keep focus for financial goals

Finally, it’s important to stay focused on your goals at all costs. For this, you can use visual stimuli such as a board in your home office or even a Pinterest panel with photos of the places you want to visit, the vehicle you want to buy or the house you want to live in.

Another idea is to share your goals with people close to you so they can also help keep you motivated. The important thing is to have your goals in sight and always be engaged in savings to achieve them.

Mistakes that get in the way of your financial journey

In closing, let’s check out the mistakes you should avoid if you want to achieve your financial goals with flying colors:

  • avoid impulse purchases that prioritize immediacy and compromise your future;
  • avoid excessive consumerism to alleviate anxiety (instead, plan all your purchases);
  • don’t leave your goals for later, because each day without saving makes your goals more distant ;
  • avoid long-term debt that impacts your income for many years and is an obstacle to your goals;
  • Be careful with the misuse of credit, which can make your goals unfeasible when it exceeds 30% of your income in installments and installments.

Do you understand what financial goals are and why you need them in your financial life? Tell us in the comments if you already have your goals set or if you are going to start this project now.

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