Personal Finance Essentials
Setting Goals for Your Financial Life
“A Comfortable Retirement” Is Not a Goal
Here’s What Is
When people are asked what they want from their financial life, the answers tend to be vague. “A comfortable retirement.” “Enough to get by.” “Not to be a burden.” These are not goals – they are wishes. And wishes do not come with plans.
A real goal is specific. It has a destination and a timeline. “I want to own a beach home by age 65” is a goal. “I want to retire comfortably” is not. The difference matters because a specific goal can be planned for. You can figure out what it costs, how long you have and what you need to save each month to get there. A vague wish gives you nothing to work toward.
Goals Change – and That Is Okay
You will not have the same goals at 25 that you have at 45 or 65. Life changes – children arrive, careers shift, relationships evolve – and your financial goals should change with it. Setting goals is not something you do once. It is something you return to throughout your life, adjusting as your circumstances and priorities change.
The most important thing is to have goals at all. People with clear, specific financial goals are far more likely to achieve them than people who simply hope things work out. Write them down. Put a date on them. Make them real enough that you can feel something when you think about achieving them. That emotional connection is what gives you the motivation to stay on track when life gets in the way.