Before I really started learning about personal finance, I didn’t have goals. Sure, I saved up for things I wanted, a new car, a ski trip, a summer holiday, a new TV, but I wasn’t thinking beyond the next “want.”
I had no idea how I’d fund my retirement or build lasting wealth. I hadn’t even considered what retirement might look like! Investing wasn’t even on my radar; that was for other people. In other words, I didn’t have a plan, and without a plan, it’s hard to move forward with purpose.
These days, my financial goals are my roadmap. They give me focus, motivation, and direction. They remind me that money isn’t about the next shiny purchase, it’s about creating a life that feels stable, fulfilling, and free. And my goodness, how great that feeling is.
Why Goals Matter
Without goals, money tends to slip through our fingers. We save here and there, but without a target, it’s easy to lose track or give in to impulse spending.
Goals give us:
- Purpose: A reason to save and spend intentionally.
- Motivation: Something to look forward to as progress builds.
- Clarity: A way to measure if we’re moving in the right direction.
On the flip side, not having goals can lead to:
- Missed opportunities for growth and investment (and enjoying the magic of compound interest)
- Financial stress when emergencies arise (and they always do, don’t they?).
- Regret later in life when we realize we didn’t plan for the future we wanted.
My Current Goals (and How I’m Tracking Them)
Short-term goal: Trip to Italy – Fall 2026
I’m planning a trip to Italy next fall. The goal: save $10,000: $5,000 for flights and accommodations, and $5,000 for spending money (although I’m secretly hoping to come home with some left over if I can walk away from the beautiful Italian shoes!).
With $4,000 already saved, that leaves $6,000 to go.
Goal Budget: $6,000 ÷ 12 months = $500/month
Mid-term goal: New used car – 7 years away
I’d like to have around $30,000 saved by then (adjusted for inflation). I’ve already saved $4,000, so that means saving $26,000 over 84 months, about $310/month.
Right now, I save $400/month to give myself a buffer for car maintenance.
Long-term goal: Retirement income of $6,000/month
This one changes as my pension and salary grow, but it’s my north star.
Currently, I’m saving and investing $2,300/month, and I plan to increase that soon to ensure I’m building enough to fund a comfortable, independent retirement.
The numbers might change, and they will, but the key is that I have goals. They give me something to aim for and adjust as life evolves.
Where to Start (and How to Build Your Own Goals)
If you’re just starting out, don’t feel like you have to map out your entire future. Start small. Set one or two short-term goals, maybe an emergency fund, a weekend getaway, or paying off a credit card. Once those are in motion, you can build toward bigger goals.
Once you’ve got your own financial life vest or oxygen mask on, look around. Help your kids, nieces, nephews, or friends start thinking about their goals. The earlier they begin, the easier it becomes to build lifelong financial confidence.
Your Turn: Create Your Own Goals
I’ve created a simple, free budget spreadsheet to help you start planning your goals and tracking your progress. You can download it here Free Budget Spreadsheet, you’re welcome.
Whether it’s a short-term save or a long-term dream, write it down, give it a number, and make a plan. Goals aren’t just about money; they’re about creating the life you want, so go on, give it a try today.
