Before setting financial goals, create a vision for your life and clarify your values. Then, you’re able to set financial goals that align to what matters most to you.
A vision is a way of life or a style of living. How does the house, the car, or the clothes make you feel? What purpose do they serve in your life? Do these things trulysupport vision for your life?
Setting Financial Goals
Financial goals are specific, monetarily quantifiable, and measurable aspects of the vision for your life. They are things that can be purchased such as goods, education, and experiences.
For example, your vision for your life is traveling the world and gaining new life experiences as you eat different food, learn new cultures, and share your stories. However, you’re planning on getting a mortgage. In this example, your financial goals should be related to saving money for travel not a mortgage that may lock more of your hours to work than travel.
Or if you’re vision includes living in New York City, then saving money for a car may not align with the lifestyle you vision.
When you’re clear about your vision, you’re able to set financial goals that align with what matters most to you. You’re then able to move towards that vision.