When it comes to your finances, goal setting can be the best way to take control and to live an enjoyable, comfortable life. Goal setting involves developing an intentional plan to help motivate you to reach tangible, attainable goals. Goal setting for your finances includes short term, mid-term and long term goals.

Setting goals for your finances shouldn’t be stressful. Rather, it is an essential part of having healthy and effective finances. Setting financial goals not only insures that you will be financially secure, but it helps you save for emergencies and spend less on things you don’t need. Everyone’s finances and goals are different, but working towards your short, mid, and long term financial goals will lead to financial stability.

Short Term Goal Setting

Short term financial goals are the easiest goals to attain, and the best place to start getting your finances in order. Setting and attaining financial goals now will put you on a path for financial success later. Short term goals include saving up for an emergency fund, sticking to a budget, or paying down credit card debts. These goals may change over time, but it is best to get your “now” sorted out so that you can begin to save for “later.”

Mid-term Goal Setting

Once your short term plans are in order, it is good to look at goals you can have for the near to middle future. This includes things like saving for a house, saving for your children’s college/future, paying off student loans, and starting to invest in life insurance. When setting these goals it is good to look at what you want for the future, and what it will take to get there.

Long Term Goal Setting

Once you are secure with what you want for the near future, and are making moves to get there, it is time to look at the far off future. For most people, this means saving and planning for retirement. Although it is best to get your short term and mid term goals set, there is no harm in starting to save for retirement now. Especially if your company offers an employer matched 401(k). The sooner you start saving for retirement, the better off your long term goals will be!

Don’t put off financial goal setting until things are perfect or you have a better paying job. Goals can be flexible and change over time due to your situation. But the most important thing is to set goals now, and start working towards financial freedom!