A financial goal is a monetary objective you hope to achieve, such as buying a new car or saving enough to go on a vacation. Regardless of the specifics, having a goal can help build up your savings portfolio, aid in investment areas, and alleviate the risk of future debt. Essentially, these goals are like milestones that help map out your life and where you want to spend your future earnings.
Setting these goals as a teen is especially important for laying the framework for a successful financial future. People from all economic backgrounds can find greater stability by incorporating financial goals early on. Allowing more time for saving and investing will only serve to improve one’s financial well-being down the line. Financial goals are a key part of building a strong financial future, but they are certainly not a guarantee to success. Making adjustments or seeking professional advice are effective measures to use alongside these goals.
The three main types of financial goals are distinguished by their time frames: short-term, medium-term, and long-term. Short-term goals involve things you want to accomplish within a year, such as buying a new computer or furniture. Medium-term goals typically range anywhere from one to five years for expected completion. Some examples include saving up for graduate school or a home down payment. Lastly, long-term goals are objectives that will take longer than five years, such as saving for retirement.
Firstly, when making a list of financial goals, consider what aligns best with your values and future wishes. Starting with smaller achievable goals that you can measure has proven effective in setting up later success and commitment. Goals can also be flexible, so don’t be afraid to revisit and revise them. On another note, if you feel that saving for goals can be a long, arduous process, try to break the steps up. Additionally, try to identify your wants vs. your needs and observe the urgency of each. This will help postpone unnecessary purchases, allowing you to save more for larger goals. Finally, set a savings timeline and hold yourself accountable for contributing a certain amount to your goal each week or month.
Opening a savings account is a great way to establish a place to store money for your financial goals. You can ask your parents to help set it up with a local bank or credit union. After getting approval, start using the account to become familiar with how it works, how interest is earned, etc. Deposit any money lying around and contribute to the account monthly to watch how your savings grow over time.
Start outlining specific financial goals you want to achieve and how much you need to save up to attain them. Consider the time frame in which you want to reach these goals. This information will help establish a budget so that a certain amount of your income is saved periodically to finance your goals. A budget also helps free up extra costs and set realistic saving expectations. Financial apps can help with your budget and savings goals by making it easier to make adjustments, keep things organized, and track progress.
It’s never too early to have a financial vision of your goals and begin saving for them. Creating good financial habits now in your teen years is especially important to setting yourself up for future success. Implementing some of the financial advice mentioned above into your daily life will only improve the chances of reaching your savings’ goals and turning your dreams into reality.
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