How to establish achievable financial goals

New York City, June 11, 2024 – Setting the right financial goals can bring you one step closer to building a secure financial future, but it’s important to make sure they’re achievable so you’ll stay motivated. Saving for retirement, buying a house, or saving for your kids’ college education can all be within reach. In this article, we’ll share some tips to help you establish achievable financial goals.

Break down big goals into smaller milestones

Divide your long-term financial goals into smaller, more achievable short-term goals. For example, if your long-term goal is to save $40,000 for a down payment on a house, you can set a savings goal of $8,000 per year for the next five years to keep you on track.

While a number like $40,000 may seem discouraging, an annual savings target of $8,000 amounts to just over $660 per month, which is more realistic for many people. Your annual or monthly goals should be tailored to your income, expenses, and needs. Creating a budget can help you understand how much disposable income you have and how much you can realistically save to reach your goal.

Address your debt

Debt can be a significant barrier to achieving your financial goals. Whether it’s credit card debt, student loans, or a mortgage, repaying the debt quickly can free up funds for other goals.

Assess your debt by making a list of all your outstanding balances, including personal loans, car loans, medical debt and more. Write down the total amount you owe, the interest rate, and minimum monthly payment for each debt.

Two of the most common debt repayment methods are the debt snowball and the debt avalanche.

Debt snowball method:

This method includes focusing on paying off the smallest debt first and can give you the satisfaction of seeing your debt decrease quickly, so you feel motivated to tackle the next debt.

Debt avalanche method:

On the other hand, with the debt avalanche method, you focus on paying off the debt with the highest interest rate first. This may be a slower process, but it can help you reduce your interest payments in the long run.

Work with a financial advisor

A financial advisor can provide you with tailored suggestions on financial goal setting as well as actionable plans to bring your goals to life. To find a qualified financial advisor, type ‘financial advisor near me’ into your preferred search engine and look for well-reviewed professionals. You can also get references from trusted friends and family members. Financial planning is a crucial part of setting achievable goals, and sometimes you need help from a specialist to get it right.

Setting financial goals you can achieve doesn’t have to be hard! Breaking big goals down into smaller milestones, managing your debt, and working with a trusted financial advisor can help you set and reach those milestones sooner than you think.

Media Contact Information:

Source: Northwestern Mutual

Contact: Don Klein
Phone: 1-800-323-7033

New York City