Do you have a clear vision of what you want your life to be in 5, 10 and 20 years time and are you using your money as a tool to get you there?
Honestly, the most common answers I hear are "no", "I have no idea" or "yeah, I know what I’d like, but I have no idea how to get there". If that’s you too, you’re in the right place and I am going to help you.
This month, our theme is all about the importance of Creating Financial Goals and an Action Plan.
In this post, we’re covering how to identify your goals by looking at what matters to you most and what your ideal life looks like.
This is something I really love working with people on as you get to see results so quickly. It’s also fascinating to hear and see what people’s dream goals actually are, then it's amazing for both them and me to see when they feel confident in the plan we put in place. Then of course, hitting those goals is another level!
Why are Creating Financial Goals and an Action Plan a Big Deal?
So let’s start with why financial goals and action plans are so crucial.
Picture this: you’re on a road trip or adventure. You wouldn’t start without a destination and map or GPS, right? The same goes for your finances. Financial goals are your destination, and the action plan is your roadmap. Without them, you’re driving blind, and we don’t want that!
In fact, research shows that people with financial goals are more likely to save regularly, invest wisely, and ultimately feel more secure about their future.
Want to feel more secure (and excited!) about your future too...let's go!
Want to read?
The article below covers everything you need to know as well as some questions to get you thinking.
Prefer to watch a video?
No problem! Watch the 8 minute video below where Ed will take you through each of the steps.
Step 1
Identifying Your Financial Goals
So, how do you figure out what your financial goals are? You might think about the future but not know what you want it to look like.
This step is about taking some time to really think.
Sit down, grab a cup of tea, coffee, or wine—whatever you fancy. Turn off your phone, remove distractions, and definitely don’t do this when the kids are around. Ask yourself, “What do I really want?”
This is a big question and can feel overwhelming if you’ve not done it before. That’s totally normal. There are many ways you could start, but I find the questions and activities below help unlock some thinking and ideas.
What matters most to you in life?
Think about your core values or the things that fill you with positive energy. Are they family, friends, health, freedom, career?
Prioritise them in order.
Use numbers, colour whatever works for you
When it comes to finances, what is most important to you?
Take a moment to think about your past and future financial decisions. Reflect on this and consider the below points.
Have a think about previous financial decisions, what felt right and what didn't? Why?
Do you have anything you already know you want to achieve? For example, clearing debt, building an emergency fund?
Aligning your final goals with the above values ensures they feel fulfilling when you achieve them!
Step 2
Envisioning Your Ideal Life
Now that you have identified your core values, use them to envision your ideal life:
What would your ideal day, week, month, or year look like?
Think about your daily routine, work, and personal life.
Do you want to work full-time and need to save for full-time childcare, or change careers and build a financial cushion?
How about a holiday once or twice a year?
How would money help you live that life?
Where do you see yourself in 1, 5, or 10 years?
Create a vision of a life that makes you feel happy and fulfilled.
What excites you?
Step 3
Summarising Your Goals
Start to bring together all of the thinking from above around your values and wants and create a vision for what you want for your financial future.
This could be a drawing, vision board, bullet points....the options are endless. The key here is creating something you can refer back to.
Now, imagine living the life you have envisioned. How does it feel? Amazing? Wonderful? Warm?
Whatever that positive feeling is, hold onto it. Put it at the centre of your reasons for managing your finances.
When managing your finances feels painful or boring, remember that feeling you want to achieve, and it will give you the drive you need!
Next Step
Turning Your Vision into Reality
So now you have a vision of what you want your financial future to look like, first of all, congratulate yourself! It's not easy doing this work and it's not always easy to find the time!
For some, this vision might feel big, overwhelming and a bit of a way off and that’s normal and ok. For others, you might want to get working on it straight away.
Don’t stop now, keep coming back to these activities add to them, change them, re-prioritise and continue to the next step which is creating an action plan to get you to your vision, your roadmap.
Watch our next video to find out the secret to turning these dreams into REALITY!
Click the button below.
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