I want more money – but what next? How to set a financial goal and stay the course

What is a financial goal and how does it differ from a dream

A financial goal is any objective that requires money to achieve. It acts as a guidepost, helping you get your finances in order and, step by step, achieve better financial results than you have now.

You can compare a goal to a treasure on a map: there’s a destination — the treasure itself; there’s a map — your life; and there’s a route you take to reach that treasure. Along the way, you assess what resources you already have, who can help, where difficulties might lie, and where you can shorten the journey.

The difference between a financial goal and a dream is that a goal is measurable, achievable and time-bound. A goal that will work is clearly defined — for example, ‘save $50,000 in 5 years’.

When a specific amount and timeframe are established, a dream turns into a task. It requires a plan, the selection of tools and regular steps — and that is when the journey towards the goal begins.

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What types of financial goals are there

Financial goals can be conveniently categorised by two criteria — timeframe and content. This approach helps you see straight away which goals require quick decisions and which require long-term planning. It also helps you understand what each one is responsible for: financial security, capital growth or standard of living.

Here’s how goals are categorised by timeframe:

Short-term — up to one year. These goals might include, for example, buying appliances, travelling, or saving for specific expenses — such as paying off a small debt.

Medium-term goals — from one to five years. These most often include saving for a car, a mortgage deposit, or further education.

Long-term goals — anything a person plans for five years or more: retirement savings, buying property, financial freedom.

Goals are categorised by content as follows:

Savings goals — when you are saving a specific amount for a clear purpose. For example, for renovations or moving house.

Protective goals — a financial cushion and anything related to security: money for unforeseen situations.

Investment goals — goals related to capital growth and passive income.

Consumer goals — major purchases such as a car or household appliances.

How to set a financial goal and work towards it: a step-by-step plan

A financial goal ceases to be an abstraction when you have a plan for achieving it. Below is a step-by-step plan to get you started.

Step 1. Choose a financial goal that is relevant to you right now. Before moving on to calculations and planning, it is important to choose a financial goal that you are genuinely ready to work towards at this stage of your life.

In practice, people often start with goals that boost their status: saving for a car, a flat, travel, or striving for passive income — but financial planning should start with the basics.

First, it is important to understand whether your basic needs are met, whether you feel financially secure, and whether you have protection in case of unforeseen events. Only then should you move on to goals for growth and improving your standard of living.

The goal you choose must correspond to your current reality — this is where a conscious and mature journey towards financial results begins.

Step 2. Check whether the goal is achievable using calculations. To understand whether a financial goal is realistic, it is enough to do some simple maths.

For example, if you’re aiming for a capital of 100 million in 10 years, work out how much you need to save each month and ask yourself: is this feasible under current circumstances? If not, you should adjust the goal — either reduce the amount or extend the timeframe for achieving it.