I once did a presentation to a group of (unfortunately, disgruntled) employees about goal setting and received some feedback about the topic (not about my presentation skills, though they were probably referring to both):
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- “Goal-setting is boring.”
- “I like to live in the moment.”
- “Booooring.” (Yes, there were several overlapping comments.)
The American Psychological Association revealed that in 2021, money constituted high and “somewhat significant” levels of stress for 61% of Americans. So why not implement personal financial goals? If planning for the future can help alleviate money stress, why not take care of it by setting three types of personal finance goals?
Let’s walk through short- mid- and long-term financial goals so you achieve exactly what you want, whether you want to start investing in cryptocurrency or put together a budget for the first time.
Three Types of Personal Finance Goals
The Financial Industry Regulatory Authority (FINRA) has already made it somewhat easy for you by identifying three types of financial goals:
- Long-term financial goals: Long-term financial goals usually take more than 10 years to accomplish and can refer to saving for retirement or paying off your mortgage.
- Mid-term financial goals: Mid-term financial goals usually take three to 10 years to accomplish and can include saving for the down payment on a house or saving money to start a business. Mid-term goals can also involve the costs of saving for college (depending on the age of your kids).
- Short-term financial goals: Short-term financial goals should take less than three years to accomplish and may include saving money to renovate a basement or saving for a vacation.
Putting very clear time frames on all the goals you want to achieve will help you identify concrete steps to get there. But how do you do it? Let’s find out.
How to Set Financial Goals in 2022
Let’s walk through each type of financial goal one at a time so there’s no question about when you want to achieve a goal and how to do it.
How to Set Long-Term Financial Goals
Setting long-term financial goals doesn’t have to be daunting, though you might feel as if you’ve been given a monumental task to map out your entire life on paper. Here’s the deal, though: If you think of it that way, you’ll always feel overwhelmed!
- Step 1: Start by writing down exactly what you want to accomplish beyond the next 10 years. You may want to retire in …….