How to Set financial goals (and stick with them)

In order to hold ourselves accountable, we need to know what direction we are headed.  Setting and realizing your financial goals is a great way to start.  “What is a way to stay accountable to reaching your financial goals?” you might ask. The answer lies in setting clear, structured objectives and having a solid action plan. Whether your goal is saving for a European vacation or early retirement, this 5-step guide will not only help you establish SMART financial goals but also offer insights into short and long-term savings objectives.

1. Identify the Best Budget Tool

Before you start, having the right tool is crucial. From tracking to management, a good budget tool makes a significant difference. Whether it’s basic expense tracking or a comprehensive financial overview, define what you expect from your tool.

Many tools allow free trials; try some out before you commit! And make sure to remember the most important aspect of choosing a tool is picking something you will stick with for the long haul.

Check out my review of the top budget tools!

2. Establish a Budget

Understanding your financial standing is foundational.

A budget tool will allow you to understand your income, fixed and variable expenses, and gain an understanding of what is possible given your expenses.

3. Define SMART Financial Goals

SMART – Specific, Measurable, Achievable, Relevant, Time-bound – goals are the cornerstone of financial planning.

a. Make it Specific: Instead of “I want to save,” try “I want to save $20,000 for a home down payment.”

b. Ensure It’s Measurable: Tracking progress towards that $20,000 becomes your motivation.

c. Aim for Achievable: Ambition is good, but realism ensures consistency.

d. Keep it Relevant: Your goals should mirror your personal aspirations and values.

e. Set a Time Limit: Like aiming to save “in 3 years.”

4. Break Down Your Goals

Tackling big goals becomes easier when you split them into small steps.

For example, if saving $20,000 in 3 years, you’re looking at approximately $556 per month. This translates to around $128 each week.

You can also set short-term or long -term savings goals.

Example of a short term savings goal: Saving for a vacation, buying a new gadget, or creating an emergency fund.

Examples of Long Term Savings Goals: Think about saving for retirement, accumulating a down payment for a home, or investing in your child’s education.

5. Implement and Review Regularly

With your goals in place, it’s action time.

By visiting your budget (minimum monthly) you can review and trim where necessary, identify side hustles or promotions to boost your income, and revisit your goals periodically to ensure they make sense with your current situation.


Embarking on your financial journey requires clarity, commitment, and consistent action. By understanding what SMART financial goals are, recognizing examples of short and long-term savings goals, and implementing a structured approach, you’re better positioned to achieve your financial goals. Remember, it’s not just about the destination, but also about the discipline, habits, and skills you develop along the way. Dive in with determination, and remember: accountability is the key to unlocking your financial dreams.

3 thoughts on “How to Set financial goals (and stick with them)”

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