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Determining Your Financial Goals

A Roadmap for Every Stage of Life

Setting financial goals is one of the most important steps toward building long-term stability and peace of mind. Whether you're saving for something small or planning for retirement, having a clear plan helps you stay focused and motivated.

 

Types of Financial Goals

Most financial goals fall into one of three categories:

  1. Short-Term Goals (1 year or less)
    These are goals you can accomplish relatively quickly.
    • Examples:
      • Paying off a credit card
      • Building an emergency fund
      • Saving for a specific purchase
      • Making minor home repairs
      •  Establishing good credit
  2. Medium-Term Goals (1 to 5 years)
    These take a bit more planning and discipline.
    • Examples:
      • Saving for a down payment on a home
      • Paying off student loans or car loans
  3. Long-Term Goals (5 years or more)
    These are big-picture goals that shape your future.
    • Examples:
      • Planning for retirement
      • Saving for a child’s education
      • Building generational wealth

 

Defining Your Goals with the SMART Framework

To make your goals more achievable, use the SMART method:

[insert table]

 

Building an Emergency Fund

Before tackling medium or long-term goals, it’s important to have an emergency fund in place. This fund should be:

  • Liquid and stable (not invested in the stock market)
  • Stored in a savings account, money market account, or high-yield savings account
  • Used for unexpected expenses like car repairs, medical bills, or home emergencies
  • Replenished after use to maintain its safety net

General Guidelines:

  • If you’re single: aim for 3 months of essential expenses
  • If you’re married with one income, a single parent, or self-employed: aim for 6 months

 

Revisiting Your Goals

Financial goals aren’t set in stone. Life changes, and your goals may need to shift too. While medium and long-term goals tend to stay consistent, it’s helpful to revisit them regularly:

  • Remind yourself why you’re saving
  • Celebrate progress
  • Adjust timelines or priorities if needed

Staying connected to your goals makes it easier to stay on track and avoid setbacks.