10 Best Financial Goal Examples To Fast-Track Your Wealth Growth

Last Updated August 29, 2024 by Davina Kelly

Here are the top financial goal examples to help you take control of your financial future. 

The financial goals I’ll share in this post are based on the objectives I set for myself while working to improve my finances. As well as insights learned from some of the best books on money mindset.

In this post, you’re going to learn how to set financial goals and the best financial goal examples to help you take charge of your finances.

After reading this post, you’ll have plenty of smart financial goal examples and know how you can achieve them.

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What Is a Financial Goal?

A financial goal is an objective you intend to reach by managing your money. Financial goals can range from short-term goals, mid-term goals and long-term goals and will guide you on how to budget, save and spend your money. 

Think of these goals as a roadmap for your financial decisions.

Given the rapid increase in the cost of living it is important now more than ever to commit to reaching your financial goals.  

Setting clear, specific financial goals will help you stay motivated, and make informed decisions that lead to a more stable financial future. 

Whether you’re just beginning your personal finance journey or trying to get back on track, you need to have a clear goal in mind.

Here is a list of the goals I started with to give you some financial goal examples. 

• Cut out all unnecessary spending
• Live on a simple budget
• Pay off consumer debts in 1 year
• Save up my first $20,000 in 18 months
• Start investing in the stock market every month
• Travel twice a year

Types Of Financial Goal Examples

There are 3 types of financial goals you’ll typically set.

• Short-term
• Medium-term
• Long-term  

Understanding the difference is important as it will help you when setting your financial goals. 

Short-Term Financial Goals

Short-term financial goals are objectives you aim to achieve within a year or less. These goals are typically more immediate and will help you establish a solid foundation for your finances

Here are some short-term financial goal examples

• Create a budget
• Build an emergency fund
• Pay off small debt

Medium-Term Financial Goals

Medium-term financial goals are those you plan to achieve within two to five years. These goals often require more planning and saving than short-term goals. 

Let’s look at some medium-term financial goal examples

• Save for a house downpayment
• Pay off larger debt like a car or student loan
• Build an investment portfolio

Long-Term Financial Goals

Long-term financial goals usually take five or more years to achieve. These goals often involve sustained effort and long-term planning with a focus on growing your wealth. They also require more discipline, patience and consistency. 

Lastly, here are some long-term financial goal examples

• Save for retirement
• Pay off your mortgage
• Achieve financial independence
• Build a business

When you start considering which financial goals to set it’s important to make your goals SMART. Here is what I mean

Specific – Your goal needs to be specific

Measurable – You need to be able to measure your progress

Achievable – You need to know how you will achieve your goals

Realistic – Keep your goals simple

Timebound – Set specific deadlines 

This is the framework I’ve relied on to set my financial goals and it has made achieving them much more manageable. Now, let’s get into these financial goal examples. 

10 Best Smart Financial Goal Examples:

1. Educate Yourself About Money

One of the most important financial goals you can set is to educate yourself about money. Financial literacy is the foundation on which all other financial goals are built. 

Think about it, if you aren’t educated about money, how will you know what to do with it?

Sadly, not enough people are educated about money. Did you know that according to FT Adviser, only 33% of the world’s population is financially literate? 

This means that three-quarters of adults in the world lack a basic understanding of money matters. We need to do better!

When you understand how money works you can make informed decisions that will benefit you in the long run. 

If you want to change your financial future start educating yourself about money now. Trust me, once you begin to see the positive changes you’ll be so happy you took that first step. 

This was something I spent time doing when I set out to improve my financial situation and it changed everything. I shifted my mindset beyond just saving and learned how to make my money grow and work for me. 

You can educate yourself by taking courses online, reading books and listening to podcasts that cover basic personal finance topics. 

Here are some of my favourite personal finance books:

• The Psychology Of Money by Morgan Housel

• Rich Dad Poor Dad by Robert T Kiyosaki

• I Will Teach You To Be Rich by Ramit Sethi

• The Millionaire Next Door by Thomas J. Stanley and William D Danko

Below are some YouTube channels I highly recommend. They are very informative and give practical tips. 

• Earn Your Leisure
• Nischa

2. Develop a Realistic Budget

Second to educating yourself about money, developing a budget is one of the most important financial goal examples. 

A budget is a great tool to help you manage your finances. It will show you where your money needs to go and help you make informed decisions about your spending.   

By creating a realistic budget you’ll be able to set aside funds for essential expenses, savings, spending and your goals. This will help you ensure that you’re living within your means and avoid accumulating unnecessary debt. 

I know creating a budget can seem complicated so let me give you a practical example.

Let’s say you work full-time and earn $2,500 a month after tax.

Monthly Income = $2,500

Less Living Expenses = $1,500 

Remaining balance = $1,000 

You can use the remaining balance to contribute towards your financial goals. This is a very simple example for illustration purposes, but you can apply the same principle to your circumstances. 

With a budget in place, you’ll have more control over your money and know exactly how much you can contribute to your financial goals. 

You can grab my FREE printable budget planner below to help you put your budget together. 

3. Reduce Your Essential Expenses

Reducing your essential expenses is a practical financial goal example that can free up more money in your budget. Essential expenses include things like housing, utilities, and transportation. 

These costs are necessary as they help to maintain your standard of living, but they can often be managed more efficiently. By cutting these expenses you can save a lot of money over time. 

Here are some ways to reduce your essential expenses

Housing

• Refinance your mortgage
• Renegotiate your rent
• Consider downsizing your living space
• Lower your utilities costs by checking price comparison websites to find better deals 

Groceries

• Create a grocery budget
• Shop at cheaper grocery stores
• Use meal planning services like the $5 meal plan

Transportation

• Use public transport when you can 
• Swap your car for an older cheaper model

Focus on one area at a time to avoid feeling overwhelmed. When I first started reducing my expenses, I focused on groceries. I identified the foods I bought most often, created a weekly grocery list and started shopping at more affordable grocery stores. 

I also found creative ways to save each time I shopped like using a rewards card to earn points and get access to discounts. These small changes added up and made a big difference to my budget. 

Lowering your essential expenses doesn’t mean you have to sacrifice your quality of life. Instead, it’s about making smart choices to maximise value. 

This will allow you to stretch your money further and allocate more resources to your financial goals. 

4. Pay Off Debt

Paying off debt is one of the most effective ways to improve your financial health. High-interest debt such as credit cards or payday loans can eat up a huge portion of your income.

By prioritising debt repayment you can free up money that would otherwise go toward interest payments and use it to achieve your other financial goals. 

This is one of the most popular short-term financial goal examples. It’s also the first financial goal I worked towards on my journey to improve my finances. 

I was stuck in payday loan debt and desperately wanted to pay it off. Once I did I was able to save more and invest my money. 

Being debt-free gives you a sense of financial freedom. Without the burden of debt, you have more disposable income to contribute to your goals or spend on things that bring you joy. 

5. Create a Savings Fund

Building up your savings is one of the essential financial goal examples. 

Not having any savings is like travelling without a map – you won’t know how to navigate detours and end up getting lost. 

This is why you need to build up your savings. A solid savings fund acts as a financial safety net for unexpected expenses and gives you the confidence to plan confidently for your future. 

If you don’t have any money in savings I suggest you start with building an emergency fund. 

According to Bankrate, only 44% of U.S. adults could pay an emergency expense of $1,000 or more from their savings. This means over 50% would borrow money in an emergency. 

This is shocking and emphasises my point. Having savings set aside can help you get through any emergencies and avoid going into debt.

Aim to save $1,000 first then build up to 3 – 6 months of living expenses. Using the same example from creating a budget, with living expenses of $1,500 you should save between $4,500 to $9,000.

Saving money to cover your living expenses will not only help you cover an emergency but also help you maintain yourself if you lose your job. 

Knowing you have a safety cushion can also contribute to your peace of mind and allow you to focus on your other financial goals. 

To maximise your savings open up a high-yield savings account and designate it for your savings. Set up an automatic transfer to deposit funds into this account each month. 

This way you can earn interest on your savings while resisting the temptation to dip into the account.  

6. Find Ways To Grow Your Money

Once you’ve built up your savings and paid off debt, the next step is to find ways to grow your money. 

Having savings is super important and I want to emphasise how important it is to have savings in place first. But if you want to build wealth you need to make your money grow.

Here are some ways you can grow your money

• Invest in the stock market
• Buy income-generating assets
• Start a business

If you’re just getting started, I suggest focusing on the stock market, particularly index funds. You don’t need a lot of money to get started and they offer a low-risk, diversified approach.

Not to mention investing is one of the most powerful tools for building wealth over time. 

Growing your money through investing allows you to benefit from compound interest which is where your earnings generate even more earnings over time.  

This can increase your net worth and help you achieve long-term financial goals such as purchasing a home. 

By educating yourself about how to invest your money and different strategies like investing in index funds, you can make informed decisions that align with your goals. 

This is one of the best financial goal examples to build wealth and financial freedom. 

7. Increase Your Streams Of Income

Increasing your streams of income is a clever strategy to fast-track achieving your financial goals. Relying on one source of income is risky, especially in the current economic climate we are living in. 

Having one stream of income is one step away from being broke, sorry if that sounds harsh but it’s the truth. You need to diversify your income by putting your eggs in different baskets.

Here are some ways you can increase your streams of income:

• Start a side hustle
• Do freelance work
• Build passive income streams
• Buy a rental property
• Invest in dividend stocks

If you work a full-time job you can dedicate your weekends to building your side hustle or focus on building passive income. 

Having an extra income can give you the freedom to explore new opportunities, take risks, and enjoy a higher quality of life. 

Focus on leveraging your skills and resources to create income streams that align with your financial goals and lifestyle. 

8. Increase Your Net Worth

Increasing your net worth is a great long-term financial goal example as it reflects your overall financial health. 

Your net worth is the difference between your assets (what you own) and your liabilities (what you owe).

For example, if you own $20,000 in stock and have a student loan debt of $30,000 your net worth would be negative $10,000. 

To improve your net worth focus on building assets such as savings, investments and property while reducing liabilities. By focusing on these areas you can gradually increase your net worth over time.  

Monitoring and growing your net worth is crucial as it can unlock opportunities for future investments and financial growth. 

It will also give you more flexibility in your financial decisions, whether it’s starting a business or retiring early. 

9. Plan For Retirement

Speaking of retiring early, planning for retirement is one of the most crucial financial goal examples. Focusing on this area will ensure you maintain your standard of living after you stop working. 

I know it may seem far off but it’s never too early or too late to think about becoming financially free during retirement. 

However, the earlier you start saving for retirement the more time your money has to grow. 

You can plan for retirement by contributing to your retirement accounts like 401k or IRA. If you’re from the UK you can open and contribute to a Lifetime ISA.

This can help you build a comfortable nest egg over time. 

Retirement planning involves more than just saving. It requires figuring out how much money you’ll need in retirement and developing a plan to achieve that goal.

Some ways may include maxing out employer contributions and adjusting your savings rate as your income increases.  

By planning for retirement you can ensure that you’ll have enough resources to enjoy your golden years without worrying about running out of money. 

10. Achieve Financial Independence

Achieving financial independence is one of the ultimate financial goal examples. Financial independence means reaching a point where you no longer have to rely on a job or external sources of income to cover your living expenses. 

It gives you the freedom to pursue your passions, travel or simply enjoy life without the constraints of financial obligations. 

Isn’t that the dream life? To wake up and decide what you want to do without money being a factor. It may sound out of reach but it is entirely possible. 

The journey to financial independence requires careful planning, disciplined savings and strategic investing. 

By setting this goal, you give yourself the ultimate financial freedom – control over your time and how you choose to spend it. 

FAQs about Financial Goal Examples

Below are answers to some common questions about finance goal examples

What Is an Example Of Setting a Financial Goal?

An example of setting a financial goal might be to save for a house downpayment. Once you’ve set your goal calculate the amount you’ll need to save and set a deadline for reaching it.  

This approach will provide you with a clear plan to achieve your financial goal. With a well-defined goal in place, all that’s left to do is consistently work towards your objective. 

What Is an Example Of a SMART Financial Goal?

An example of a smart financial goal could be to save $10k in a year. 

Now let’s break it down to make it completely smart.

Specific – We are saving a specific amount of $10k

Measurable – You can track your progress with a saving tracker

Actionable – Save $833 each month

Realistic – This is a simple goal within budget

Timebound – The amount will be saved over 12 months

Final Thoughts

Financial goals are personal and should be tailored to your unique circumstances. The key is to approach your goals with patience, discipline and a long-term perspective. It may seem challenging at times but your bank account will thank you later. 

I hope you have found this post helpful and now have some great financial goal examples. Which goal are you working on? Let me know in the comments below. 

This post was all about financial goal examples.

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