How to set financial goals

Think about what you want and why. Then, assess where you are right now to determine what you need to do to get there. Visualize where you want to be in the future and set aspirations that align with your values. Make sure to leave room for immediate goals as you form a plan
Some ways on how to set financial goals. Examine your situation. Start by assessing your income, income tax situation, budget and net worth. “Having an understanding of these four things will help determine goals and prioritization of those goals,” says Steve Martin, wealth planning advisor at Oasis Wealth Planning Advisors in Nashville, Tennessee. You may have multiple goals in mind and don’t know what to do next. Or maybe you do not have specific goals. Look at where you stand right now, it could help set you on the right trajectory, whether your ambitions are short term, long term or have yet to be identified.
Find your inspiration. Think not just about what you want to do, but why you want to do it. Attaching reasons to your goals can put them in perspective and fuel motivation. For example: Get rid of credit card debt so you can put your income toward a wedding instead of interest payments.

Create a budget. If you do not have a budget, make one. This can keep all your other goals on track by preventing overspending and under-saving. We suggest taking the 50/30/20 budgeting approach. That means allocating 50% of your income toward needs, 30% toward wants and 20% toward savings and debt repayment.
Build an emergency fund. Build up an emergency fund so you can afford to pay rent if you lose your job. A healthy emergency reserve acts as a safety net during financial shocks like a job loss or unexpected medical bill. We recommend you save up enough to cover three to six months of expenses.Pay off debt and Save for retirement. Retirement may be decades away, but it is important to start saving as early as possible so that you have enough money to survive on when the time comes. Most experts recommend saving 15% of your gross income each year. After you have identified and vetted your goals, mark them down.

This can keep objectives clear, organized and tangible. Fill out a worksheet or spreadsheet, or use a notepad. Check in periodically and track your progress. Once you have crossed off one goal, move on to the next. Reward yourself for making progress and completing objectives.

Think smart and consider all the necessary pieces of a plan — not just the goal, but the steps you will take to reach it. Ensure that your goals are specific, measurable, achievable and realistic