Your Money Can Do More Than Pay Bills | 4 Steps to Setting Strong Financial Goals

Setting goals gives you long-term vision and motivation in the short-term. Think about it; your goals help guide your steps day-to-day. It's how you develop a sense of direction and focus. For example, if your goal is to live a healthier lifestyle and lose weight, you're going to do your best to exercise and eat healthy most days. Your weight loss goal is what helps you turn down the second glazed Krispy Kreme doughnut (let's be honest, I'm eating at least one). Setting financial goals are no different. Without financial goals, you'll be led to believe that your work is done after your bills are paid.

Your money can do more than just pay bills from month to month. Honestly, most of us are operating in financial survival mode. The mindset that "as long as your bills are paid, you're good." Yes, that's important…but what else. What about being intentional about the future, creating financial freedom, a legacy for your loved ones, or preparing for the unexpected. "Generational wealth" has become this clichéd phrase that feels out of touch for most. It could be because you don't realize wealth and prosperity is attainable for you. I recognize that there are deep-rooted, systematic constructs that make this tough, but there are things we do have the power to change.

I'm not suggesting that you don't enjoy life right now, but small sacrifices go a long way. We have to move away from our tendency to pay our bills and spend the rest. It gets you nowhere, fast. Let's change that, the first steps are to figure out what you want to achieve and why.

List out your core financial values and what is important to you.

For me, it's security and freedom. Having peace of mind during the unexpected and freedom to live life on my terms is of high importance to me. Nobody can tell you what's important to you; only you can do that. Reflect on what brings you the most satisfaction and your passion. How do you willingly spend most of your time and money? Here are a few other examples of values to get you started:

Family: Spending time & creating traditions with your loved ones

Charitable-giving & helping others:  Serving those in need

Travel: Enjoying global experiences and trying new things

Health: Improving the state of your well-being

Appearance: Investing in the way something or someone looks

Education: Prioritizing  learning new things

Here's the other thing; it's okay to change your mind. In fact, I expect your values to change over time.

Draft your money mission statement. 

Now that you have your values, it's time to draft your money mission statement. A money mission statement is a summary of your long-term vision and purpose for your money. It should be motivating and inspire action toward your goals. Think about what you want to achieve and how you want to get there. It can sound something like: 

"I am responsible for being a good steward of my resources. It is important for me to actively pay down my existing debt and increase my savings so that I'm able to make a philanthropic impact on my community. Increasing my savings will also give me the freedom to spend less time working and more of my time serving those who are less fortunate."

You don't have to wordsmith it unless that's your prerogative. Spend some time thinking about it, get it on paper, make it personal, and get to the point. This statement should be something you read often.

Set your financial goals & break them down. 

Once you have your money mission statement, your goals should become more evident. It's also essential to break your goals down into steps. For example, if your goal is to save $2,000 a year from now, your actions might include putting $76 per paycheck into your savings account. Don't just set goals in your mind; WRITE them thangs down. If you're anything like me, the moment I tell someone something or write it down, it becomes real (and that's what we want).

Some other goals might include:

Build up an emergency fund equal to 3 months of pay.

Keep credit card debt under 15% utilization.

Have adequate life insurance to cover my final responsibilities.

Pay off student loan debt in 8 years.

Rinse and repeat

It's essential to check-in and review your progress often. Celebrate the moments when you accomplish your goals. It's not easy, especially when there are daily temptations to get off track. Add new goals as you check things off the list. That's the key to really leveling up. Schedule a day/time biweekly to assess your finances and progress toward your goals. Find yourself an accountability partner, someone who will remind you that you have food at the house!

As your life changes, review how it impacts your financial goals and adjust as needed. For example, preparing for the next step with your significant other could mean it's time for your personal money mission statement to evolve into a family money mission statement. Think about the power in intentional decisions with your finances as a unit. Trust me, it will completely change how you approach decisions for the better. 

Now it’s time to execute…

Write down your goals and share them with us. We want to help you celebrate your accomplishments. It’s important to acknowledge your progress and to stay motivated along the way. Be sure to tap into some of the other resources we have to help.