Why should I set a financial goal?
Let’s face it, most of our goals in life will need money:
A trip to Japan
Retirement
Having kids
Owning a house
Attending a BTS or a Taylor Swift concert
…all of that costs money.
And if we don’t plan, we might never get around to achieving these goals.
As David Bach, author of Smart Couples Finish Rich, once said, “If a goal is going to cost money, and you don’t start planning and saving for the cost, you are not going to achieve it.”
Here are the benefits of setting a financial goal:
You are much closer to achieving your dream because you’ve started planning.
Setting a financial goal means you’ve done your research.
You know how much it costs.
Considering your current disposable income, you know when you’ll realistically finish saving up for it.
Without knowing all of these, you can’t set a goal.
And so, after doing all this work, I hope you know that you’ve just taken a huge step towards your dream.
You are not saving endlessly for a vague future.
Again, you know when you’ll finish saving.
You know when you’ll be able to enjoy your money.
And it’s not only about saving as much as you can for 30-40 years until retirement.
Having both short-term and long-term goals means you can enjoy your money before and after retirement.
If you include it in your plan, you can enjoy your hard-earned money now.
Remember, we don’t live to work. We work to live.
You are maximizing your financial resources.
Do you know the saying, “Out of sight, out of mind”?
It means when we don’t see something, we tend to forget about it.
We focus more on the things that we see and interact with every day.
If you’ll notice, our life goals tend to take a backseat when we don’t actively work towards achieving them.
So, when we receive a bonus at work, or we sign a new freelance client, and we receive a sudden influx of money, we don’t think about our life goals.
We don’t think about retirement.
We don’t think about our future home or our future kids.
We think about the ads we see on billboards, in between videos, and in our social media feeds.
We think about the latest iPhone. The latest PlayStation. The latest online sale.
But when we set financial goals and include them in our monthly budget, our money regularly goes towards achieving our bigger dreams.
We start to lessen unnecessary spending.
We start to create bigger, positive changes in our lives.
We start to see our lives transform sooner rather than later.
This, we believe, is the best reason why you should set financial goals.
Did you know that you can track several financial goals in different bank accounts using the Build My Wealth app? Here’s a step-by-step guide.
