How to Set Up Your Financial Objectives

Mastering money starts with knowing what you want to achieve and how you make money an enabler to get there. It’s all about defining your goals and creating a plan to reach them and the beginning of the new year is a great time to do this.

Once you have your objectives defined, then it becomes much more doable to decide what steps you need to take to achieve them which includes how much money you need to allocate to each of them and with what frequency.

Our brains are very powerful but often get overwhelmed by a task that at first seems difficult. This is especially true when it concerns a big sum of money at once. What our brains will accept much more easily is if that big sum of money is broken down into doable chunks on a regular basis. It’s much easier for you and your bank account to pay €50 every month for six months than it is to say bye to €300 at once.

The Three Types of Financial Objectives You Need

In our book, we look at objectives in three buckets based on the time to achieve them:

• Short-term – next few months up to a year
  • You may want to tackle some debt here that’s particularly troubling for you and speed it up. Or this could be a short vacation you want to make.
• Mid-term – next one to five years
  • This can be getting ready for your wedding if you want to have a big celebration. Weddings are costly so it’s one of those big things in life you may want to plan and save for in advance.
• Long-term – five years plus
  • In this category, you could have your bigger investments such as buying property – whether to live in or to rent out.

Defining your objectives with a clear timeframe allows you to put a plan of action against each and one of them.

Make a date with yourself or with your partner and truly reflect on what matters to you and what you want to achieve, Write it down and then start thinking about how you can make them happen. Here’s also a financial goals printable from us to help you with this process.

What are your financial objectives?