How To Achieve Your Financial Goals. (Christian Millenials)

Estimated reading time: 10 minutes

Do you want 2023 to be the year where you achieve your financial goals? Have you been trying to achieve them only to end up not doing that and feeling bad about yourself? Maybe you wanted to save $10000 last year but were not able to and would like to know what you can do differently to hit this goal this time. Well, I got you, so let’s dive right in. Before we can look at how to achieve your financial goals, let’s look at why you need to set your financial goals.

The benefit of setting your financial goals.
Keeps you focused.
- Helps you find the right tools and strategies.
- Allows you to monitor your progress over time.
Examples of financial goals you can set
How then can you achieve your financial goals? What practical steps should you take?
Conclusion

The benefit of setting your financial goals.

Keeps you focused.

When you set a financial goal, you will have clarity on what to do with your finances. And again you will also know where you are going. After all, without a vision people perish. This will help you stick to your goal and not spend your money on unnecessary things. Let’s say your financial goal is to pay off $ 20000 debt. Having this goal in mind will help you avoid going out on some dates with your friends or cutting back on eating out.

And because you have a plan, not only will you welcome the idea of having a budget, you will also find that you become intentional with your spending habits. Setting financial goals will also help you desire to learn more about your finances and gain the financial literacy needed to help you remain focused.

Helps you find the right tools and strategies.

Once you have figured out the goal you want to achieve, you will know the strategy that you need to use. If the goal you have set is small, then you will obviously save modestly to achieve it. An example would be if you want to save $1200 every month. You will need to set aside $1200/4 = $300 every week. And if you were to break it even further you would need to save $300/5 =$60. Saving $60 a day is not as stressful as it would be saving $600. With $60 it could mean you cutting back on some luxuries and wants e.g eating out, etc. On the other hand, if you were saving $600 a day that would mean making lifestyle changes and possibly even downsizing your home.

That is why setting financial goals are important. They give you a road map on where to start. The tools needed will shift. If your financial goal is saving, you will obviously need to have an account and also factor in the APR. And if your goal is investing you will need to consider your risk appetite, capability, and also the return on investment.

Allows you to monitor your progress over time.

When you set financial goals, you can keep track of your progress. You can see how far you have reached and how long it might take you to achieve the said goal. Without financial goals, you will aimlessly save your money. This means that should an opportunity present itself, you will have no problem spending the money. Being able to track your progress over time gives you the motivation you need to keep going. It is also encouraging when you see yourself achieving what you set out to do.

Think about this, how do you feel when you lose that 10 pounds you wanted to? I would assume it gives you even more determination to want to set another goal. Setting financial goals is the same. Once you have achieved your first goal, you will gain the confidence to set a bigger one.

Examples of financial goals you can set

To do this, let’s divide the goals into short-term goals, medium-term goals and long-term goals.

Short-term goals.

Any goal that can be achieved within 2 years is considered a short-term goal. Examples of this include.

Saving up for a vacation- You can do this by opening up a separate account for your vacation. Set aside a specific amount of money whether it is monthly, weekly, or daily to top up on that account.
Set up an emergency fund. An emergency fund is considered a short-term financial goal since you need to save up to 3-10 months of your monthly expenses. And with the right strategy, this can be done in 18 months or less. Check out my blog post on how to set up an emergency fund.
Create and stick to a household budget- This is yet another short-term goal you can include as part of your financial goals. Again if you want to learn more check out my blog on how to create a budget.
Cut back on spending. One of the most important goals is to learn to cut back on your spending. This will help you be able to achieve your other financial goals. Often times it is not how much you earn but how wise you are with your spending that will help you achieve your financial goals.

Medium-term financial goals

Medium-term financial goals fall between 2 and 5 years. Examples of these include:

Saving up for a down payment on a home or renovating your current home.
Paying off your credit card debt or your student loan. If you want to learn more, then check out my blog on being debt-free.
Saving up for your wedding.
Paying off a chunk of your mortgage or paying off some debts with high-interest rates.
Investing or starting a business.
Saving up on your education.
Create other income sources or climb up the corporate ladder.

Long-term financial goals.

Long-term goals are those that are longer than 5 years

Saving up for your retirement.
Setting up your children’s college fund.
Setting up a trust fund.
Continuing your life insurance and health insurance payments.
Buy investment properties.
Pay off large debts and become debt-free
Become financially independent. Check out 3 ways God can help you achieve financial freedom

How then can you achieve your financial goals? What practical steps should you take?

Know your why.

Why have you set financial goals? Knowing your reason will help you to keep going regardless of the external factors that may come your way. That inner drive is what determines if you will achieve your goal or not. This means that the said goals should be personal to you. You should not set financial goals because other people are setting them. Like let’s say your friends have set a financial goal to go on vacation, but you would rather do something else. You might find that you will not achieve the goal of saving up for a vacation because you lack the drive to do it.

Always ensure that your financial goals are unique to you. You are an individual who has their own mind and that is a wonderful thing.

Define your goal clearly.

Unless you can clearly articulate your goal, there is no way you will achieve it. And this applies to all goals, not just financial goals. General goals yield general results. So how do you set a clear goal? For a financial goal to be clear it needs to be.

Achievable. And the way to measure this is by using your current disposable income or your expected income. After all, a bird in the hand is worth more than two in the bush. You cannot plan for resources you don’t have. Saying what you will do when you win the lottery is not practical. I am not saying that you cannot win the lottery, all I am saying is that you need to work with what you have. And also make sure that you factor in your expenses too. There are obligations that you must meet every month. Factor those ones in as well.
Specific. Your financial goal should be specific. An example would be I want to save $5000. Having a goal this specific ensures that you can create a solid plan to achieve it.
Measurable. Set a deadline for your goal. Now that you know you want to save $5000 stipulate when you want to achieve it. You could say that you want to achieve it in 10 months. Now that is a plan that you can work towards. Not only is the goal specific, but it also has a timeline hence it can be measured

Now that your goal has passed the three tests, now you need to set small actionable steps. How much do you need to save to get there in 10 months? Will you be saving monthly, weekly, or daily? What expenses do you need to cut back on to ensure that you have the funds to set aside? To do this practically let’s use an example.

$5000/10 =500. You need to save $500 every month to achieve your goal. Breaking this further $500/4 =$125 a week. And to break it further $125/5 =$25. What expense costing $25 can you cut that falls under wants and not needs? Dining out, (maybe) ? Breaking this goal into small actionable steps shows you how realistic it is for you to achieve your goal. That is why the goal needs to be specific and clear. It is when you are specific that you can find the strategies you need to achieve your goal. Also, ensure that you have a separate account for the same.

Write the goal down.

Studies show that a goal has a higher chance of being achieved when it is written down. And again, as you write down you gain clarity as well. So, write it down. Even Habakkuk 2:3 reminds us that we should write the vision and make it plain. And again, don’t forget to take it to the Lord. It is when you give your plans to the Lord that He will establish them. Involving God in your plans guarantees that it comes to pass if it aligns with His will. Involving God in you plans looks like you telling Him what you desire and asking Him to change it if He needs to.

Have an accountability partner.

You need to have someone who will help you stay on track. Yes, you might be accountable for yourself and obviously that is the best way. But it is also important to ensure that you have someone who helps keep you in check. This might be a spouse, a friend, parent or you might even decide to seek professional help. You could hire a financial advisor or a financial coach that will help you accomplish your financial goals.

Gain financial literacy

Knowledge is essential to achieving your financial goals. It is through knowledge that you will experience the transformation you need to achieve your goals. After all transformation comes through the renewal of the mind. Whether it is through reading books, taking courses, watching videos, or attending a boot camp. However you can get the knowledge do so.

Don’t be afraid to ask for help. And again wisdom comes from seeking wise counsel and being teachable. Replacing your view on finances is what will help you to achieve your financial goals. Sometimes it is wrong thinking that hinders us from achieving our goals. And once we change our perspectives, we will then be able to achieve our goals. What mindset do you need to overcome in order to achieve your financial goal? It does not matter how long that lie has been ingrained in your mind, you can change your thinking. And with the help of God, you will experience the transformation that will lead to your success.

Conclusion

It is possible for you to achieve all your financial goals. God wants to help you achieve them. And this is because when you are successful, it brings Him glory and draws people to Him. After all, you are His ambassador. You don’t need to stay the way you have been. Transform your life and choose a new path. Always remember that a wise man leaves an inheritance to His grandchildren. And the secret to achieving that is setting financial goals and accomplishing them as well.

Proverbs 15:22 Without advice plans go wrong, but with many advisers they succeed.

Proverbs 20:18 Plans succeed through good counsel; don’t go to war without wise advice.

And Proverbs 12:15 The way of a fool is right in his own eyes, but a wise man listens to advice.

Proverbs 11:14 Where no counsel is, the people fall: but in the multitude of counsellers there is safety.