Control Your Money: Proven Strategies to Set and Achieve Financial Goals

Whether you’re just starting your financial journey or are on the cusp of retirement, setting clear financial goals is a pivotal step toward a secure future. Financial planning isn’t just for a specific age or life stage; it’s a lifelong endeavor that can significantly impact your ability to achieve your dreams — be it homeownership, world travel, or early retirement.

In fact, financial planning is becoming more and more popular among younger age groups. As of 2020, nearly half of millennials (49.5%) ages 24 to 39 and 7.7% of people ages 15 to 23 were already saving for retirement and had at least one retirement account. Regarding savings (in general), people under 35 have an average of $11,250 saved, and people ages 35 to 40 have an average of $27,910 in their savings account(s).

In this article, we’ll guide you through essential steps and tips, empowering you to transform your financial aspirations into reality and gain confidence in your money management skills.

Your Roadmap to Financial Success: Easy-to-Follow Strategies That Work

1. Clearly Define Your Financial Goals.
2. List and Prioritize Your Financial Goals.
3. Think ‘SMART’ With a Plan for Real Results.
4. Keep Tabs on Your Journey to Financial Success.
5. Treat yourself!

1. Clearly Define Your Financial Goals

First things first, let’s get a snapshot of where you are financially. Jot down your monthly income, what you’re spending each month (rent, groceries, bills, etc), any outstanding debts or payments you have, and what you’ve managed to save so far. This quick financial check-up will give you a solid foundation for making smart choices moving forward. It could look something like this:

• Monthly income: $4,600
• Monthly expenses: $2,900
• Debts and outstanding payments: $13,555 in student loans and $745 in credit
• Amount saved (so far): $17,955

Now, let’s think about what you want to financially achieve. Are you looking to build a safety net with an emergency fund? Or maybe you’re focused on tackling high-interest debt? Don’t forget about the big picture, too — like saving for a dream home or planning for a comfortable retirement. Your savings goals could look like the following:

1. Start saving for the “dream home.”
2. Use (some) of current savings towards a small emergency fund.
3. Pay off student loans over the next 18 months.
4. Pay off credit card debt within the next three months.

The key to financial success is knowing exactly what you’re aiming for. Spend some quality time thinking about your personal money goals. Having a vivid idea of what you’re working toward will keep you committed and energized.

2. List and Prioritize Your Financial Goals

Now that you’ve got a clear picture of your financial aspirations, it’s time to lay them all out. Make a complete list of what you’re aiming for, whether it’s saving for a vacation, investing in a college fund, or planning for a secure retirement. Consider opening a personal savings account tailored to your financial goals to keep things organized.

Once your list of financial goals is ready, it’s time to put it in order. What’s most important to you right now? What can wait a bit? Prioritizing your goals, whether for the short or long term, helps you focus on what truly matters first, giving you a roadmap to follow. This way, you’re not just dreaming — you’re doing. Your prioritized money management goals should look like this:

1. Use current savings to pay off credit card debt.
2. Save a portion of your bi-weekly paycheck towards student loan payments.
3. Take money out of current savings for an emergency fund.
4. Put some of your existing savings towards the “dream home.”

3. Think ‘SMART’ With a Plan for Real Results

When setting up your financial management plan, remember to make it SMART: Specific, Measurable, Achievable, Realistic, and Time-Bound. Let’s say your goal is to save for retirement. Instead of a vague aim like “Save more,” try something specific like “Contribute $300 monthly to an IRA Savings Account.” This not only maximizes your tax benefits but also gives you a clear, actionable step to take for retirement planning. It should look like this:

1. Use $745 from current savings to pay off all outstanding credit card debt by end of month.
2. Save $250 from each bi-weekly paycheck towards student loan payments.
3. Take $1,500 out of current savings for an emergency fund by Sunday. Keep this in a separate savings account. This is for emergencies only (no impulse purchases!).
4. Put 75% of current savings (after paying off credit) towards the “dream home” for November purchase.

A well-defined money plan is your financial GPS, guiding you toward your objectives. But don’t just set it and forget it. Regularly review your plan to make sure you’re on track of making appropriate financial decisions, and adjustment as needed. Life happens, and your financial plan should be flexible enough to accommodate changes, whether it’s a new job, a move, or an unexpected expense.

By following a SMART plan, you’re not just wishing for financial success — you’re actively working towards it, with a clear path and milestones to celebrate along the way. In fact, you’re 42% more likely to reach your goals when they’re written out this way!

4. Keep Tabs on Your Journey to Financial Success

One of the keys to hitting your financial targets is regularly checking in on how you’re doing. Think of it as your financial pulse check. Whether you opt for weekly, monthly, or yearly reviews, these checkpoints will help you stay on course and make any tweaks if needed. Here’s one way to track your progress:

Don’t shy away from using money management tools to help you out. Budgeting apps, spreadsheets, or good old-fashioned pen and paper can be your best friends in tracking your income, spending, and savings. And if you ever feel stuck or need expert advice, financial professionals are just a call away. They can provide personalized tips that align with your unique financial landscape.

5. Bonus Tip: Treat Yourself

Lastly, remember to celebrate small victories along the way. Feeling rewarded and accomplished is crucial for maintaining motivation. Incorporate small, affordable treats or experiences into your plan as you reach milestones, like:

• Take the family out to ice cream and get an extra scoop.
• Go to that fancy place on the corner for dinner on Friday night with your friends.
• Treat you and your significant other to dinner and a movie (with popcorn).
• Take the kids to the zoo on Saturday afternoon.
• Buy a new dress for your college reunion (show them how well you’re doing!).
• Order that second mimosa at brunch 🙂.

Make your entire financial journey enjoyable and satisfying, encouraging you to continue striving for your goals.

By incorporating these proven strategies in your financial planning, success will be within reach. Start working towards a brighter financial future, and explore additional resources such as GSB’s Self Service Center to make managing your finances easy and convenient.

Let GSB Help You Achieve Your Personal Financial Goals

Your financial journey is as unique as you are, and that’s why GSB customizes its resources to fit your individual needs. We’re all about making financial education easy to understand and approachable so you can feel empowered, not overwhelmed. Join us today and take a meaningful step toward a brighter financial future.