Annual Financial Goals

Steps to set your 2022 financial goals

What do you imagine for your future?

To accomplish any of those things, you need financial goals. Setting financial goals can help you prioritize they are a way of giving you a clear idea of why you’re saving your hard-earned money

A five-step plan to help you set your annual financial goals:

1.Give your money a job. What kind of life do you want now? Later? That’s the job of your money to help you achieve. Remember, you can revise your goals throughout the year.

2.Categorize each financial goal as short-, mid- or long-term. Short-term financial goals: six months to five years Mid-term financial goals: five to 10 years Long-term financial goals: more than 10 years.

3.Set a target date for each financial goal. Being specific helps, even if you adjust the date over time.

4.Prioritize each financial goal: critical, need, or want. It helps to prioritize, so if the situation becomes critical, you know what to fund first. Label each goal on your worksheet: critical, need, or want.

5.Know how much you have vs. what you still need to save. For example, If you plan to buy a home in two years and you need cash for a down payment, divide that by 24 months. Then you know how much to save per month towards that goal.