Hi, my name is Karen and I am a Finance Coach and blogger. I specialise in helping couples talk about money - without arguing. Subscribe to my weekly newsletter for practical tips on how you can make your money go further so that you can live your best life!
What are money goals and why are they important?
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Dear Reader, It's nearly the end of the month and whether you're aiming to move house, pay off debt or build a rainy day fund, this is a great time to look at your bank accounts and set some money goals. What Are Money Goals? Money goals are specific targets you set for your personal finances. By looking at your finances, you can identify and look at how you could improve. It's only by looking at the bigger picture that you can see what you are doing well and where you can improve. This helps you budget, save, and plan effectively. Why Are Money Goals Important? Money goals guide your short-term and long-term financial planning. Without clear goals and a strategy to save, it’s challenging to achieve financial freedom. For example, if buying a house is on your list, budgeting for a down payment can help you make significant progress toward that goal. Setting money goals allows you to prioritise your spending, stay accountable, track your progress, and celebrate your achievements along the way. Over the last few years, we've created money goals as a family and it's been great to work on them as a team. We are able to hold each other to account and reign each other in when we feel like going on a shopping spree! What Are Short-Term Financial Goals? Short-term money goals are objectives you can achieve in a relatively short period, usually within a few months to a year. These goals are based on your income and budget. Some examples of short-term financial goals include:
What Are Long-Term Financial Goals? Long-term money goals are those that require several years or even decades to achieve. These goals involve larger amounts of money and a lot of patience! Examples of long-term money goals include:
Back in 2018 we decided to save for a holiday to Disney World Florida. Flying from Kenya, Africa and Covid in 2020 didn't make the holiday a cheap one and we ended up saving for four years. It was a goal that we worked on as a family. It was hard work and at times it was frustrating too: especially when all our friends were enjoying holidays and we had to stay home. BUT, it was an excellent way to teach our daughter about delayed gratification. And the holiday was AMAZING! We have so many happy memories that no one can ever take away from us. See the photo below and check out our smiles! I can honestly say that creating money goals with the family was one of the best things we've ever done. It was a joint effort and totally worth it! :) Remember that both short-term and long-term money goals are personal and unique to each individual and family. Your financial situation and goals will differ from mine and from your friends. If you need some inspiration to help you create SMART money goals, read my blog Setting Financial Goals. Hit reply and let me know if this email has inspired you to create a money goal - or if you already have one! Let me know what your current money goal is, I'd love to hear from you! Love, |
Money and Marriage
Hi, my name is Karen and I am a Finance Coach and blogger. I specialise in helping couples talk about money - without arguing. Subscribe to my weekly newsletter for practical tips on how you can make your money go further so that you can live your best life!
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