How to Prioritize 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 reasearch, people who commit goals to paper are 42% 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.

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.