Bruce Helmer and Peg Webb
“If you don’t have a goal, any road will take you there.”
This old adage might sound whimsical, but it’s the cornerstone of smart financial planning. Without clear goals, your financial journey can feel like driving without a destination in mind — sure, you’re moving, but where are you going?
The secret to a successful financial plan isn’t just saving for retirement or splurging on that dream house. It’s about making your money serve your values, not the other way around. When your goals align with what matters most to you, the payoff is far more fulfilling.
Today’s article offers a five-step process for how to set purposeful financial goals and, more importantly, achieve them.
Step 1: Start with what matters most
Everyone wants to save money, but vague goals don’t inspire action. Instead, get specific. Instead of saying, “I want to save more,” aim for, “I’ll save $50,000 in three years for a down payment on a home.” Goals that are measurable and tied to personal values are more likely to succeed.
Your values — be they family, freedom, education, giving back, health, or adventure — serve as your financial compass. Ask yourself:
• Who do I want to impact with my money and time?
• What passions have I been putting off?
Visualizing your goals also helps. Picture what retirement success looks like. Do you see yourself lazing on a beach somewhere, volunteering, or running a boutique? Putting in a dream garden? What would having a weekday coffee with friends look like without having to wake up to an alarm clock?
Step 2: Turn goals into a game plan
A goal without a plan? That’s just wishful thinking. Research published in the journal Applied Psychology shows that setting specific, challenging goals (especially written ones) increases performance compared to vague or unwritten goals. Writing clarifies intentions reinforces commitment and helps track progress.
Start by evaluating where you are financially and where you want to go. Identify gaps between your current habits and your desired future. Then, create a detailed roadmap with milestones.
Put your roadmap in writing. A 2007 Dominican University study demonstrated that individuals who wrote down their goals, shared them with a friend, and provided regular updates were significantly more likely to achieve those goals. And make them actionable. Instead of saying, “I want to go back to school after I retire,” specify, “I’ll take the Graduate Record Exam (GRE) in May, with a plan to apply to Archaeology Master’s programs at the local university next fall.”
Think long-term but focus on the next steps. A great plan bridges the gap between intention and action.
Step 3: Take it one step at a time
Execution is where dreams meet reality. It’s also where most people get stuck. Start small with micro-goals that build momentum.
For instance, automate savings to ensure consistency. Audit your expenses and trim anything that doesn’t align with your values — goodbye, unused subscriptions; hello, purposeful spending.
Thanks to the power of compounding, consistency beats perfection. Small, repeatable actions, like sticking to a budget or increasing contributions by 1% each year, can lead to big results.
Step 4: Adjust as life happens
Life happens, and even the best-laid plans need adjustment. The key isn’t perfection but persistence.
Regularly track your progress and revisit your goals at least once a year. Did your priorities shift? Are you veering off course? Adjust as needed while keeping your eyes on the bigger picture.
A resilient financial plan anticipates life’s twists and turns. Whether it’s a surprise medical bill, a job change, or market turbulence, a good plan allows you to pivot without losing sight of your ultimate destination.
Step 5: Stay resilient and keep going
Let’s face it — pursuing big goals can be hard. Mistakes happen, and setbacks are inevitable. But resilience is the not-so-secret sauce of success.
When challenges arise, remember why you started. Tap into your network for support, whether it’s a financial adviser or a trusted friend. Learn from missteps and keep moving forward.
And if lingering doubts creep in (hello, childhood money baggage), remind yourself you’re capable of change. Your money is there to serve you, not control you.
The bottom line: Make your money meaningful
At its core, financial planning isn’t just about building wealth — it’s about building a life that aligns with your values.
By setting meaningful goals, crafting a plan, taking consistent action, staying adaptable and tapping into your resilience, you can create a financial future that’s both secure and fulfilling.
So, what’s your next goal? Better yet, what values will it reflect? Your money has the potential to create a meaningful legacy — start charting your course today.
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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Bruce Helmer and Peg Webb are financial advisers at Wealth Enhancement Group and co-hosts of “Your Money” on WCCO 830 AM on Sunday mornings. Email Bruce and Peg at yourmoney@wealthenhancement.com. Securities offered through LPL Financial, member FINRA/SIPC. Advisory services offered through Wealth Enhancement Advisory Services, LLC, a registered investment advisor. Wealth Enhancement Group and Wealth Enhancement Advisory Services are separate entities from LPL Financial.
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