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Setting Financial Goals to Meet Your Life Goals

Setting Financial Goals to Meet Your Life Goals

| June 25, 2019
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Without setting your life goals, saving and investing can seem like a bunch of disconnected facts and figures.

These are important figures to keep in mind, but they miss a key critical element: how you go about defining and prioritizing your unique life goals, and then tracking your progress toward them. Here are five ways to make sure that the numbers don’t sidetrack you from what’s really important — living the personally enriching life you have imagined for yourself.

Buckets for the big picture.

The way you view your long-term financial picture generally can be segmented into 3 goal “buckets:”

  1. Your Needs - This includes basic necessities that will be non-negotiable, even when you're in retirement. This includes things like housing and healthcare
  2. Your Wants - What do you really want to do? What are the things that make you happiest? This bucket is for your hobbies, traveling, and recreation. 
  3. Your Wishes - In your dream financial scenario, what you really love to have? A fishing boat? A new outdoor kitchen? These things are also worth considering.

Be specific and realistic. 

What goals are most important to you? To pay down debt? To provide college educations for your children and grandchildren? To take up a new passion? Once you’ve identified your goals, put a specific price tag on them. Just as with The Price is Right TV game show, the closer you get to the actual retail price of your goals, the better. Then, rank them in order of importance. For example, is taking a trip once a year more important than entertaining friends and family every weekend?

Match “must haves” and “nice to haves” to your income.

Basic needs take priority: you need housing, food, and health care. If your investments, Social Security and other sources of income can cover your basic needs, you can begin to focus on wants and wishes. One of the values that a financial advisor can bring you is to facilitate goals-based planning discussions, and providing tools to help you visualize how your investments and savings can help you achieve those objectives.

Be flexible.

Unless you have perfect self-awareness, you probably won’t be able to afford all your wants and wishes.  It’s relatively easy to scale back some of them to achieve greater balance among your goals, assets and future income.

Own your future.

Money is simply a tool that, used correctly, will give you the freedom to pursue your goals. The value and satisfaction you derive from your wealth is more a function of how you see yourself living a meaningful life, and having the flexibility to adjust as your life changes.


WATCH: How You Can Start Saving for Your Dream Retirement

When planning for the future, it sometimes can be tempting to focus on performance returns and growth in account balances. But numbers can just as easily distract you from the life purpose that your savings and investing enable.  By paying greater attention to how you are progressing to your goals, rather than simply the yardstick used to measure them, you reaffirm the eternal wisdom that life comes first, money second.

Have questions? Let's Talk.

Contact Anne



This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.


Kmotion, Inc., 412 Beavercreek Road, Suite 611, Oregon City, OR 97045;


© 2018 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of the publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or another appropriate professional for further assistance with regard to your individual situation.

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