How to Prioritize Your Financial Goals

We all have financial goals. Places we want to go, things we want to buy and milestones we hope to achieve before retirement. But planning for all this can get overwhelming. Many of us are too worried about our day-to-day expenses to consider any long-term goals. However, if you want to achieve your financial goals, it’s important to think about what you want your future to look like. Then make a plan to get started. Start with these tips:

Create a list

You’ve probably heard the old saying that an unwritten goal is just a wish. It may sound cliché but writing down goals really does work! Why not apply this strategy to your finances? Make a list of everything you need to feel secure, happy or personally fulfilled. This may range from paying off student loans to buying the vacation home of your dreams.

Once you’ve identified your goals, it’s time to get specific by identifying shorter-term goals that will lead you there. Not only will this give you the motivation to put your plan into action, it will also allow you to check things off your list as your ultimate goal becomes a reality.

Rank your list

Now that you’ve figured out what your financial goals are, rank them in order of importance. Some goals will be short-term goals, while other will be long-term financial goals. If you’re having a hard time prioritizing, ask yourself which goals will have the most impact—which ones are time-sensitive and could have negative consequences if deferred. For example, if you are torn between saving for your retirement or paying for your child’s college tuition, prioritize saving for retirement first. While social security can cover some of your expenses, ultimately there are no loans for retirement.

Generally, there’s no reason you shouldn’t be able to tackle a couple of financial goals at the same time. Just be sure you have a concrete plan for each one while building in plenty of small wins to stay motivated.

Calculate the price tag for each goal

To achieve your savings goals, you’ll need to start with accurate estimates of how much each goal will cost. This will help you better define your timeline. Try creating separate savings accounts and labeling them things like “tuition” or “vacation.” This gives you a constant reminder of what you’re saving for every time you transfer money, as opposed to a general savings account that could be allocated for anything you want.

Planning your financial future isn’t as hard as it may seem. It helps to schedule an annual check-in with your financial advisor—get it on your calendar! Then, update your progress as you go