Is there a way to set the right monetary goal and make it real without working day and night? Trust me; there are many!
You may not know, but there are many achievable financial goals examples that you can also follow to become financially successful.
But for that, you need an expert’s guidance. So, we have talked to many investors and finance gurus to figure out the best financial goals anyone can have.
But before that, let’s understand the basics of financial goals first!
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What Are Financial Goals?
There are several financial goals examples that you can follow and lead a successful life. But to do that, you need to understand what it is actually and how to set it up to work for you.
Financial goals are actually the wish you can monetarily and financially commit to yourself.
It can be short-term, midterm, or long-term, depending on your current scenario and planning capability.
However, there are many legit personal financial tips by the experts that can teach you how to set all three term-wise goals simultaneously.
But do remember that everyone is different, and so do their financial goals. And you need to plan your own goals according to your targets.
Why Are Financial Goals Important?
Goals are fundamental in every aspect of our life. It is also an elementary thing that needs to be embedded in you to achieve true success.
A goalless man is like a map-less seafarer in the vast ocean. And it is valid for the financial realm too.
Having a rigid but achievable financial goal not only motivates you but also shapes your financial behaviors. Like if you want a salary raise, you’ll automatically start to perform better and more efficiently.
That’s the same for any monetary or financial goals too! You will shape your future for good and develop a better habit of managing wealth.
How To Set Financial Goals Successfully?
There are several personal finance hacks you can implement in your life to become wealthy and successful.
But before that, you need to be smart and follow the SMART ways of setting your financial goals, which means,
- Specific goal selection
- Measurable outcome
- Achievable goals
- Realistic aims
- Turs-around time to accomplish the goal
Yes, you do need to be realistic and dreamy at the same time to achieve immense success in your life. But, to fulfill that dream, you also need to start working for it right now!
What Are The Types Of Financial Goals?
There are mainly three types of financial goals, short, mid, and long, that anyone needs to have to achieve true prosperity in life.
And depending on your current age and circumstances, you can prioritize among those.
1. Short-Term Financial Goals
Short-term financial goals are the ones you need to fulfill within the next 12 to 24 months. If you are in your late 20s and early 30s, it should be on your priority list.
Having a short-term goal will effectively motivate you to deliver better efficiency in day-to-day work.
Some of the short-term smart financial goals examples are buying a convertible car or going for a vacation in an exotic place.
But for that, you don’t just need to know how to save money but also how to make money faster than others in an intelligent way.
2. Mid-Term Financial Goals
Mid-term financial goals are the ones you need to abide by within the next two to five years. You should prioritize it moderately.
You need to put all your immediate future goals like buying a car and paying off your student loans as a mid-term financial plan.
Besides jobs, there are many financial goals examples for business people as well. Like buying the next showroom or introducing a new car in your commercial fleet.
These intermediatory goals should be high in value than your short-term goals.
3. Long-Term Financial Goals
Long-term goals are the ones that will stay with you as long as you are living on this blue planet.
It can be becoming a millionaire or planning the future for your next generation. However, you can set the goal in a time bracket of as low as 5+ years from today.
Remember that you shouldn’t concentrate solely on these goals as they are insufficient to motivate you for daily bread and butter.
Suppose you are willing to buy a Porsche after your retirement; this will never be going to motivate you enough in your 20s.
Examples Of Financial Goals
We all want to know how to make money fast and efficiently.
But we don’t have a proper plan of handling that money for the betterment of our life. And it is just because we don’t have the right financial goals set!
There are several financial goals examples that anyone can curate depending on their target and economic profiles.
However, let me point out the top five financial goals that you need to prioritize right now!
- Set a monthly budget and follow it
- Create an emergency fund and save for the bad days
- Save as much as possible for your future
- Get a better-paying job and learn a new craft to earn more
- Refinance, reduce, or completely pay off all your debts
Besides, you also need to act smart to save money, like automating your bill payment to cut off late-payment fees and investing in IRA or employer-sponsored funds.
Short-Term Financial Goals Examples
As I’ve already mentioned, you should prioritize your short-term goals first before you actually start working on your long-term plans.
But before that, you need to understand the primary short-term financial goals that you need to set.
1. Building An Emergency Fund
Setting up and saving money on an emergency fund is one of the best short-term financial goals examples that anyone should follow.
It will not only safeguard you in your turbulent times but will also boost your financial confidence, thus mental piece!
The rule of thumb for setting up an emergency fund is to save enough money that can match 3 to 6 months of your current income.
It will be even more beneficial if you can save your emergency funds in a high-interest-yielding savings account.
2. Saving For Vacation
Planning for the next trip and saving money for it is the best financial goals examples for students.
It will create a mindset among students to practice better finance habits. You can not only just save for the next trip but can also earn while traveling as there are many high-paying travel jobs available.
Remember that if you are in high school or college, your mind is not ready to take serious financial decisions as you are trained enough. So, you need to financially train your mind first in a fun way.
3. Paying Off Debt
Debt is something that can put anyone into serious trouble.
And from a very early age, like in college, you get habituated to borrowing money from various financial institutions like taking an automobile loan from a car financing company or a student loan from the bank.
But you need to pay off your debts as soon as possible. Get this first; you need to repay more and more if you delay because of the interest charge. So, if you repay fast, you’ll save more in the future.
4. Establish A Monthly Budget
One of the basic financial goals examples is to set up a monthly budget ASAP! Having a fixed budget for anything is the most crucial aspect of making it a reality.
And if you can’t fix a specific monthly budget, you can’t even start to plan your savings.
And your monthly budget should meet only the minimum requirement in the initial days. Suppose you are in college; you shouldn’t include the monthly payment of a Ferrari in your budget. Be rational!
5. Reduce Expenses And Save Money
It is high time you need to cut down all the unnecessary expenses like going out frequently and excessive online shopping!
The golden rule is to cut down your monthly expenses to match around 80% of your monthly income from all sources. So, you can have at least 20% savings each month.
You need to develop specific characteristics to control your spending impulses to save more. Besides, you can adapt to several tested money-making habits to become rich in the future.
6. Christmas Gift Savings
Jingle all the way, isn’t it? But for that, you need to save for the Christmas gift. Let’s take it in a fun way, especially if you are a high-school or college student.
Don’t put a financial target on serious things. Instead, make it fun and rewarding to save money.
It is also one of the prime financial goals examples for high school students as they can save as much as possible to buy themselves a great gift, like a new iPhone or an iWatch.
You can also save it for your siblings and partners.
Mid-Term Financial Goals Examples
Mid-term goals are way more serious in nature than short-term goals. It is because you need way more money to fulfill those goals.
But before that, you need to know about all the medium-term financial goals to plan them properly.
7. Get A High-Paying Job
The basic rule is simple; if you can’t earn more, you can’t save more! And there are many ways to earn more, like having a lucrative side job that pays up to $80/hour.
Besides, you can also increase your efficiency and look for a pay rise if you already have a day job.
And if you have your own business, you need to identify new avenues to grow and also to minimize the occurring losses.
Just try to increase your monthly income to become financially stable; that’s it!
8. Buy A Home
Home, sweet home! But it is equally expensive as well!
And the amount of money you put on a home is directly relative to the amount of sweetness it has.
However, we all wish to have our own house as that can give you a mental peace that nothing can ever match!
So, start saving for your dream home right now! And plan to make it successful within a maximum of ten years. Create a separate high-yielding investment fund and start saving money on that.
9. Create Multiple Streams Of Income
Learn from the billionaires; they always create multiple streams of income to safeguard themselves in tough times.
So, you also need to have that same sense and create more income streams. It is also among the best financial goals examples at a young age.
If you can create more than one active income source, you’ll not only feel a sense of confidence but will also make you financially stable.
And trust me, there are many ways to make extra money without putting in serious effort.
10. Start A Family
A little philosophical this may sound, having a family can benefit you in many ways.
First, you’ll have a sense of dependence and responsibility that will boost your efficiency while making money.
Second, you will automatically start planning for your wife’s or husband’s financial status.
And third, but most importantly, having a family can create multiple income flows in the same family. It is always better if a couple is saving than a man or a woman saving all alone.
11. Pay Off the Car
One of your primary financial goals examples should be getting rid of the automobile loan. We unnecessarily stretch our car loans till it seriously starts to hurt us financially.
Besides, we also tend to change the car after a few years or so.
It is better to pay off the car debt as soon as possible as most car financing companies often charge a significant amount of interest fees and late-paying fees.
Besides, you also shouldn’t exchange your car or buy a new one frequently.
12. Declutter And Sell Your Stuff For Cash
There are now many ways to make money without having a job.
And among those, decluttering and selling unused items are the best-possible financial goals examples that you can adapt to right now.
And trust me, you don’t even need to put any effort into doing that. There are websites like Decluttr where you can easily list and sell the items.
Besides, you can also arrange a garage sale to get the best price from F2F deals.
13. Rent A Room In Your Home
Do you have any room in your house that you are not using right now? If yes, you can convert it to a money-making machine without putting in any effort.
Just list that room on a website like Airbnb and start renting it out. You will not only earn profit but will also get to know travelers from different parts of the world.
Besides, you can also print some flyers and distribute them if you are looking for locals as your tenants. And it is also one of the best ways to make money while sleeping this year.
14. Save For Something You Value
Creating value and finding value in your day-to-day life can make you successful. But, do you know what can make you even more successful?
It is the time and effort you invest in something that you genuinely value. You will automatically start saving for it if your heart feels it is valuable.
Let it be a course you want to do, a vacation you are now dreaming of, or a gift you are planning for your special one, save for something you actually value.
15. Go On A Dream Trip With Your Family
Having quality time with your family is extremely important that we often forget in our busy lives. But trust me, spending time and going on a trip with your family have several beneficial effects.
First, you will feel relaxed and have mental satisfaction. Second, you’ll not just lift your mood of yours but will lift the spirit of each member of your family in that way.
And third, but most importantly, you’ll automatically make a habit of saving money for that trip.
Long-Term Financial Goals Examples
The biggest financial goals should be your long-term goals. Besides proper planning, you also need to develop systematic and regular saving habits to fulfill your long-term goals.
16. Plan For Your Children’s Education
It may sound irrational if you are young, but you need to see the bigger picture to set this goal.
Get this basic calculation first; the current inflation rate lies around 6% to 8% around the world. So, if you need $10k for any graduation degree, you will need $25k or more 15 years from now on.
So, plan wisely and plan accordingly. First, you need to identify and calculate how much money you will need to ensure a better education for your child and then plan accordingly.
17. Investing For Retirement
One of the best long-term financial goals examples is to invest for a happy and financially stable life after retirement.
You need to understand that your inward income flow will stop once you retire. And you’ll entirely depend on your savings after that.
So, it is better to open an IRA account to save for your retirement. You can invest in either of the tax-deductible and Roth IRA accounts.
Besides, you can also set up 401(k) or other employer-assisted schemes to maximize your savings.
18. Paying Off A Mortgage
Repaying those entirely and getting rid of any mortgages are the smart financial goals examples that anyone should follow.
We don’t understand that mortgage interests slowly decrease our potential for savings.
If you need money to repay your loans, how can you even possibly save? So, it is better to get rid of them asap and also not to take any further mortgages!
19. Become A Millionaire
Do you know about the two main financial goals examples that every financially stable people need to follow?
They are the urge to become a millionaire and work hard enough to become one in real life. And you should also set your goal to become a millionaire in the next 10 or 15 years.
There are many ways to achieve that height, such as investing in yourself and creating multiple income streams simultaneously.
20. Create Your End Life Documents
You need to create two primary end-life documents as your long-term goal. First, you need to select a power of attorney for all your financial instruments and assets.
And second, power of attorney for all your medical and healthcare needs when you’ll become too old.
Death is inevitable, and you need to take that with a smile. But you can also make your life beautiful and stable before it arises.
So, don’t forget to create and store your end-life documents for your family’s good!
How To Achieve Financial Goals?
So, we have listed all the possible financial goals examples above. However, you need to figure out how to successfully achieve that goal, as planning is not enough.
And for that, you should follow three simple steps.
- Plan the way to make your financial goals successful
- Act accordingly and stick to your plan
- Monitor your progress towards achieving that goal
Financial Goals Examples – Conclusion
Be rational! Yes, you need to be practical and sensible first while setting up your small, mid, and long-term goals.
Don’t just blindly follow the financial goals examples we have mentioned above. Instead, you need to filter it out according to your needs and social status.
And trust me, there are many ways to earn in this modern age! I am making $7k+/month from blogging without investing much time and effort. And if I can do it myself, you can do it too.
So, that’s all for today. Feel free to ask your hearts out in the comment box below!
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Hello there, I’m Siva Mahesh, an MBA Finance post-graduate and a Remote Career & Personal Finance blogger for 5+ years. Over the years, my work has been featured on US News, Entrepreneur, MSN, Yahoo Finance, GoBankingRates, EverQuote, Legal Zoom, The Simple Dollar, Databox, Business.com, Business News Daily, Venngage, Score.org, and more. My primary mission is to help our readers maximize their earning potential with legitimate online business ideas, side hustles, and passive income ideas we publish on Dreamshala. Currently, more than 100,000 readers from all around the world visit this blog every month and learn new ways to improve their finances.