Setting financial goals can seem daunting, especially if you're not sure where to start. However, if you take the time to figure out what you want to achieve and break these goals down into smaller steps, you can make the process a lot more simple, and less overwhelming🥵. Here are some of our Incredible tips for setting realistic and intentional financial goals:
1. Figure out what you want to achieve:
Start by thinking about what you want to accomplish financially. Do you want to save for a deposit on a house? Pay off your student loans? Build up your emergency fund? Travel the world? All of us have different goals, so once you have yours in mind, you can start to figure out how much you'll need to save!
2. Make a plan:
Once you know how much you need to save, you can develop a plan for reaching your goal. This may involve setting up a budget, cutting back on expenses or increasing your income. Whatever your approach, make sure it's something you're sure you can stick to. For example, don’t look to save £250 by cutting out an activity you love; you’re more likely to either not hit your target or feel demotivated along the way. Even if you can only realistically put a small sum of money towards your goals, stick to it without pressuring yourself to do more. Slow and steady wins the race 🐢
3. Set smaller goals:
If your goal seems too daunting, break it down into smaller goals that you can focus on. For example, if you're hoping to save £20,000 for a deposit on a house, set a goal of saving £500 per month. Once you reach that goal, you can increase it to £1,000 per month - or stick to it if it’s keeping you motivated!
4. Stay motivated:
Saving money can be tough, so it's important to find ways to stay motivated. This may involve setting up a system where you automatically transfer money into your savings account each month, or setting up reminders to help you stay on track. As we mentioned earlier, it’s also important to not punish yourself or lower your standard of living to meet these goals - as this can be extremely demotivating and only set you back. This includes not comparing yourself to others; remember these are your goals, and you can only achieve them in your own time.
5. Be flexible:
Finally, remember that goals are meant to be flexible. If you find yourself falling behind, don't be too hard on yourself. Just adjust your plan, and keep working towards it at the pace that best suits you and your finances. Circumstances change, emergencies happen and setbacks can arise - and that’s totally normal! Remember your finances don’t define you, and you can only do your best, whatever that may be.
By following these tips, we hope you can set realistic and intentional financial goals that will help you improve your financial situation without overwhelming yourself. Just take things one step at a time, and you'll be on your way to achieving your goals!