Financial Goals Examples – The Most Valuable For Better Budgets
Everyone has their own reasons for why they choose to budget. Your journey is unique to you and your circumstances. When you are ready to take control of your financial health, you have to devise a plan that address your particular financial goals.
At Mommy Hustle Pro, our trained consultant is ready to evaluate your individual situation to help map your path to financial freedom. The first step to tackling your budget is to identify potential financial goals examples. Then, select those that apply to your circumstance.
What Are Financial Goals?
Financial goals, like any other goals, are the object of a person’s ambition or effort. In other words an aim or desired result. In finance, your primary aim isn’t actually about money. Rather, it is about the lifestyle that you want to live as a result of properly managing your money.
Curating a list of financial goals is vital to creating a budget. Creating a concise image of your objectives, makes hitting your target much simpler. Your goals should be SMART. Get as specific as possible about what you want. Decide how you measure you success in reaching the goal. Only choose goals that you can actually attain, this isn’t mission impossible. Make sure they are relevant to creating the lifestyle you envision for yourself. Lastly, put a date on it! Choose time sensitive goals.
Types of Goals
There are 2 types of goals. Short term or long term. Some people identify mid-term goals, but having just 2 simplifies things.
Short Term Goals
Short term goals are small financial targets that can be accomplished within 1 year. Prime examples are vacations, smaller saving targets, electronics purchase, or a down payment on a home or car.
Long Term Goals
Long term financial goals encompass everything beyond 1 year. If you have a 3 year plan to get out of debt or a 5 year plan to pay down student loans these are your long term financial goals.
Examples of Financial Goals
Getting out of debt is essential to any budget. When you don’t owe anyone anything, your money is yours to do with as you please. There’s no obligations looming over you about owing, and it frees up money you would be using as payments.
1. Build An Emergency Fund
When it comes to finances, one of the first things any coach, consultant, or accountant will tell you is to start with your emergency fund. This goal is so highly recommended because it keeps you from going into debt. Even if you’re already in debt, you don’t want to add to it. Building an emergency fund creates self reliance. You know in the event of an emergency you have cash on hand to deal with it. Building an emergency fund in a separate savings account.
Sites like Nerd Wallet and Bankrate make it easy to compare the best rates for savings accounts at any given time. They even have detail the requirements for opening and maintaining account. Be sure to compare and see how your current savings account stacks up and whether you should move your money to get the best returns.
What can an emergency fund be used for?
- Car Repairs
- Medical bills
- Loss of work
- Car accident
- A PANDEMIC!
2. Get Out of Debt
Once you’ve built at least a $1k emergency fund, you can decide you want to start paying off your debts. This is a common financial goals example because so many people are battling with debt and stuck in the loop of infinite minimum payments. If you have debt that you can’t easily pay back within the next year it’s time to get serious and start making an aggressive plan to attack your debts.
3. Buy A Car Or Pay Off Car Loan
There’s a few large purchases you make in your life. Purchasing a car is one of them. A short term financial goal may be to save enough for a down payment to buy a car. Another option is to save enough to purchase older car all cash. A long term financial goal would be paying off the remainder of the car loan.
4. Purchase A Home
This is the king of all financial goals examples. Homeownership has many benefits, but should not be a financial decision you rush into. On the surface, for us renter’s, it can seem like owning a home is a cheaper option. However, that’s often not the case when you consider that every little thing (and BIG thing) that goes wrong, is now your responsibility. That unlocks new responsibilities and new unexpected circumstances to plan for.
However, if you do decide you are ready to own a home, it has short term and long term goals. Short term, you can start saving for your down payment and paying off debts to remove any negative impacts they may have on your credit. Long term, you can save for moving expenses, mortgage payments, and new furniture.
5. Have Additional Money For Investing
A great goal to have once you’ve settled into a good financial spot is investing. It can be risky to invest when you lack liquid cash and assets. However, once your savings and checking accounts are where you want them, it’s time to look ahead to long term wealth.
Having investments as another stream of income in your portfolio is a great financial goals example. Be informed in your decisions and know your risk tolerance. Investopedia has great educational materials and real time information for beginners.
I, personally, use Ellevest because it takes the guess work out of investing for someone that has an idea what they are doing, but doesn’t want to invest time into constantly watching the markets. They create a diverse portfolio and you can even choose to support women-led companies. I had been subscribed to their emails since 2017, but with a new baby I just didn’t have the money to spare. Now that I’m trying to elevate my financial journey I dedicate a very modest amount to this. Stay tuned for updates on my financial journey.
6. Saving For Children!
I’m sure everyone has heard how expensive children are. However, I feel like you don’t realize just how expensive until you experience it first hand. Whether you don’t have children yet, but are thinking about trying in the next couple years, or you have a child(ren) and are planning for another, save!
You can never have too much so dedicate a sinking fund for doctor’s appointments, baby showers, child birth costs, and nurseries if you’re trying to conceive in the near future.
7. Take A Vacation
All work no play? Think you can’t enjoy life while on a budget? Think again. Budgeting is all about planning! Depriving yourself of everything will only make you quit. Quitting only means starting over again and again. Stop the endless cycle by just planning for fun. Whether that’s an out of town trip or exploration of a local excursion, treat yoself’! Don’t make treating yourself your everyday lifestyle, but indulge on occasion. You will likely do yourself a financial favor if you at least are preparing for the cost prior to your festivities instead of simply dealing with the repercussions after!
8. Quit Your Job
Sometimes we are not happy with what we do for a living. However, we feel stuck because it’s what you have experience in and you haven’t had any luck elsewhere. But you’re miserable! Instead of sticking it out another 10 years, you may have a goal to find your passion! And maybe your passion isn’t working another 9-5. Maybe you want to start something of your own and working your 9-5 is keeping you stagnant in your own business. Are you financially prepared to quit?
Quitting a job that makes you miserable relies heavily on your ability to live without the income of a stable job. Ideally, when you quit one job you already have another lined up. But shit happens! And if you can bear it anymore, people often quit and “figure it out”. Be financially prepared to support yourself during this time of discovery.
Reasons your financial goal is to quit:
- You dislike what you do and want to explore your passions
- You think you could make more doing something else
9. Grow Your Checking Account
We often go on and on about growing your savings accounts. But what about your checking account? After you’ve put all the money into savings that you need, it’s a good idea to have money in your day to day checking account to do with as you please. Growing your checking account is one of the worthwhile financial goals examples for people thinking beyond their basic needs. If you want to live a luxury lifestyle, have excess cash on hand is the goal for you.
Need Help Identifying Your Personal Financial Goals?
Based on these financial goals examples, you are now equipped with a few ideas for how to attain financial success. Mommy Hustle Pro is invested in helping you reach your financial goals. Here, we do not charge you to review your financial habits and determine your goals. We offer a free consultation where we will review where you are currently, discuss where you want to be, and give suggestions on how to get there.
