How to Make and Prioritize Your Financial Goals

As we approach the end of the year, many of us are thinking about the year ahead and what we want to accomplish. Setting goals can be exciting, but the real challenge lies in following through. Whether your priorities are financial security, improved health or something else, creating achievable and sustainable goals is key to long-term success.

The importance of goal-setting
Setting goals is one of the most powerful ways to stay focused and motivated. Goals give us direction and a clear sense of progress. However, it’s not just about setting goals—it’s about setting the right goals and taking steps to ensure they become reality. The following six tips can help you design and achieve your goals for a successful year ahead.

1. Break down long-term goals into smaller tasks—Once you’ve set a long-term goal, the next step is to break it down into smaller, more manageable tasks. Large goals can feel overwhelming, so breaking them into smaller, manageable steps can make progress feel more achievable. Each completed task builds momentum and confidence, making it easier to tackle the next step. This approach also allows you to celebrate small wins along the way, which keeps you motivated throughout the journey.

2. Use technology—In the world of financial security, automating your savings is one of the best ways to make consistent progress. Tools like direct deposit can make it easier to reach financial goals without having to remember to manually make the transfer each month.

   Automating can take the guesswork out of the process, ensuring that financial priorities—along with other goals like tracking your blood pressure or monitoring progress toward your annual reading target—stay on course without the need for daily reminders.

3. Be flexible and adaptable—Life can be unpredictable. Financial markets can fluctuate, unexpected expenses can arise and priorities can shift. Acknowledging that goals might need adjustment is an important part of staying committed over time.

   For instance, if you have a health setback or an unexpected financial burden, it’s okay to step back, reassess and modify your plans. The key is to stay committed to your goals, even if the path changes along the way.

4. Build accountability—Accountability is one of the most powerful tools to achieving any goal. When someone else knows about your objectives, you're more likely to stay committed. Share your goals with a friend or family member or seek professional support. For example, a financial planner can provide expert guidance if your goal is to get out of debt or grow your investments, offering both accountability and strategic advice. Similarly, joining a fitness class or finding a workout partner can help you stay committed to your health goals

5. Celebrate milestones—Reward your progress along the way. Acknowledging progress can help sustain motivation. Once you achieve your goals, treat yourself to something that you enjoy—like an indulgent coffee drink or a night out at the movies. A small, planned celebratory expense can boost motivation—just make sure it works within your budget and aligns with your goals.

6. Stay committed to long-term financial health—While many set financial goals related to short-term savings or debt payoff, long-term financial health is just as important. Even if retirement seems like a long time away, starting your retirement and investment planning early on is a great way to give your future self a significant advantage.

   Roth IRA and 401(k) accounts are essential for building wealth over time. Contributing even a small amount can result in significant changes due to compound interest. The key is to be consistent with your contributions.

   Additionally, building an emergency fund covering about three to six months’ worth of living expenses should be a top priority.

Prioritizing your financial goals:
We all have financial goals. Places we want to go, things we want to buy and milestones we hope to achieve before retirement. But planning for all this can be overwhelming. Many of us are too worried about our day-to-day expenses to consider any long-term goals. However, if you're interested in improving your financial picture, it’s important to think about what you want your future to look like. Here are three tips to help you get started:

1. Create a list.
   You’ve probably heard the old saying that an unwritten goal is just a wish. It may sound cliché, but writing down your goals really does help. According to research, people who commit goals to paper are significantly more likely to succeed than those who do not. So why not apply this strategy to your finances? Make a list of everything you need to feel secure, happy or personally fulfilled. This may range from paying off student loans to buying the vacation home of your dreams.

   Once you’ve identified your goals, it’s time to get more specific by identifying shorter-term goals that will lead you there. Not only will this give you the motivation as you put your plan into action, it will also allow you to check items off your list as you inch closer to achieving your ultimate goal.

2. Rank your goals.
   Now that you’ve figured out what your financial goals are, rank them in order of importance. Some goals will be short-term goals, while others will be long-term. If you’re having a hard time prioritizing, ask yourself which goals will have the most impact and which ones are time-sensitive and could have negative consequences if deferred. For example, if you are torn between saving for your retirement or paying for your child’s college tuition, prioritize saving for retirement first. While social security can cover some of your expenses, ultimately there are no loans for retirement.

   Generally, there’s no reason you shouldn’t be able to tackle two or three financial goals at the same time. Just be sure you have a concrete plan for each one while building in plenty of small wins to stay motivated.

3. Know your financial target numbers.
   To be a successful saver, you need to know how much money each of your financial goals requires. Whether you're planning a vacation, building an emergency fund or saving for a major purchase, research the real costs involved—not just rough estimates. A vacation fund becomes much more actionable when you know it needs to be $3,500, not just some money for travel. Being specific allows you to calculate exactly how much to save each month, set realistic timelines and track meaningful progress.

   Try creating separate savings accounts labeled for each goal—the mental separation helps prevent you from raiding funds meant for one purpose to cover another. When you can see your emergency fund sitting at $4,200 out of your $6,000 target, you have both clarity on your progress and motivation to keep going.

Making and keeping goals for a successful year doesn’t have to be overwhelming—small and steady steps will lead to lasting change. Whether your goals are focused on financial health or some other slice of your life, maintaining consistency is the secret. Just as fitness apps can automate health tracking to help you reach your goals, automated transfers turn your financial intentions into habits—whether you’re building an emergency fund or saving for a major purchase.

Planning your financial future isn’t as daunting as it may seem. These tips plus regular check-ins with a financial guide can help you prioritize your financial goals, build a realistic plan to get you there and make adjustments for life's little surprises.