How to Set Financial Goals and Actually Achieve Them?

“To achieve goals you've never achieved before, you need to start doing things you've never done before." - Stephen Covey

Insights from a Certified Money Coach:

Picture this: You’re standing on a beautiful path surrounded by vibrant green trees.

You’re confident, empowered, and know exactly where you’re heading.

Each step you take brings you closer to your dream life - one filled with financial freedom, peace of mind and fulfilment.

The sense of contentment is real. You feel aligned with your values and your money is working for you in ways that deeply resonate with who you are.

Sounds pretty amazing, right? 

But does it sound like how you're living right now?

For many women over 40, financial goals often feel like that thing they "ought" to get around to - one day. A bit like yet another item on the never ending a to-do list. Almost as though they are some sort of adulting rule being imposed on them by external circumstances.

But what if I told you that financial goal-setting could be a deeply personal, fulfilling and even life-changing experience?

Truly.

When you manage to align your financial goals with your core values and your vision, you have a chance to create a roadmap that feels authentic and empowering, while simultaneously ensuring your financial decisions lead to long-term success.

If that's not incredible, then I don't know what is...!

In this blog post, we’ll explore how to set financial goals that align with your values and vision. I'll share practical strategies to get started on your journey to financial well-being.

Join me - it'll be fun and maybe even a little life-changing as well!

Why Aligning Financial Goals with Your Values Matters

Let's have a bit of fun with some visualisation here.

Take a deep breath and form a picture in your mind of yourself at a crossroads....

Maybe you don't have to conjure up the "picture" with too much imagination - perhaps this is where you're at right now.

Picture yourself standing at a crossroads, trying to decide which direction to take with your finances.

One path leads to generic goals - like buying a house because it’s what everyone says you should do, or saving for retirement in the way that celebrity money-guru man suggests.

The other path? Well that one leads to those secret goals you hesitate to even reveal to yourself. Those ones that really resonate with you on a deeper level and honour your true desires and beliefs. 

What do these pathways look like to you?

First, the generic pathway - describe the colour, the landscape and the view.

Then the goal-oriented pathway - what's that one like?

Which appeals to you and why?

I'm guessing that the generic "one size fits all" pathway is probably a bit less colourful, less interesting and makes you feel more "meh" than "yeah"...

Am I right?

And the other, maybe it's a little less clear cut, but perhaps the feeling behind it is more exciting to you? Does that path tease out more enthusiasm and desire?

Could that be the case?

See, when your financial goals align with your values, they become more than just numbers or milestones - they become powerful motivators that inspire you to stay on track, make smart decisions, and ultimately build the life you want.

Why is alignment SO crucial?

There are 3 pillars that underpin it:

Authenticity:

When your goals reflect what you truly care about, you’re more likely to stay the course and remain committed to them through thick and thin.

Sustainability:

You’ll build financial habits that support your long-term well-being, not just short-term gains.

Empowerment:

Making decisions based on your values allows you to take control of your financial future with confidence.

How to begin?

Just follow these simple steps:

Step 1: Clarify Your Core Values

Before you dive into setting financial goals, take a moment to reflect on your core values.

These are the principles that guide your life and define what’s most important to you. 

Start by asking yourself these questions:

- What brings me the most fulfilment and happiness?

- What do I value most in my relationships, work, and personal life?

- How do I want to make a difference in the world or leave a legacy?

For example, if freedom is one of your core values, your financial goals might focus on creating flexibility in your career or paying off debt to reduce financial stress.

If family is a top priority, your goals might involve ensuring your job provides you the opportunity to spend quality time with your kids, enjoying a work-life balance or ensuring a secure retirement for yourself and your loved ones.

Pro Tip: Write down your top three to five values. This will serve as a guidepost as you begin setting your financial goals.

Step 2: Create a Vision for Your Life

Once you’ve clarified your values, it’s time to envision the life you want. This vision will act as a compass, pointing you in the right direction when you’re making financial decisions.

Close your eyes and picture your ideal life in 5, 10, or even 20 years. Consider questions like:

- What does financial freedom look like to you?

- How do you want to spend your time and energy?

- What role does money play in achieving your vision?

For example, you might envision yourself traveling the world, spending more time with your elderly parents, or working on passion projects without worrying about how you're going to pay the bills next month. This vision will help you identify specific financial goals that align with the lifestyle you want to create.

Step 3: Set SMART Financial Goals

Now that you have a clear understanding of your values and vision, it’s time to turn those insights into actionable goals. The best way to do this is by setting SMART goals.

What's a SMART Goal?

I'm glad you asked.

It's a goal that is

Specific,

Measurable,

Achievable,

Relevant, and

Time-bound.

Say what?

No sweat.

Let’s break that down:

Specific: Clearly define what you want to achieve. For example, instead of saying “I want to save more money,” set a specific goal like “I want to save $10,000 for an emergency fund.”

Measurable: Make sure you can track your progress. For example, “I will save $500 per month for the next 20 months to reach my $10,000 goal.”

Achievable: Your goal should be realistic based on your current financial situation. Setting a goal to save $100,000 in six months might not be feasible, but saving $10,000 over a couple of years could be.

Relevant: Ensure your goal aligns with your values and vision. If financial independence is important to you, a relevant goal might be building an investment portfolio that generates passive income.

Time-bound: Set a deadline for achieving your goal. For example, “I want to save $10,000 by December 2025.”

Step 4: Prioritise Your Goals

Once you’ve set your SMART goals, you may find yourself with a long list of things you want to accomplish. To avoid feeling overwhelmed, prioritise your goals based on urgency, importance and alignment with your values.

For example, if financial security is a top priority, your immediate goal might be to build an emergency fund or pay off high-interest debt. If your vision involves early retirement, long-term goals like investing and retirement planning should take centre stage.

Pro Tip: Break your goals into categories—short-term (1-2 years), medium-term (3-5 years), and long-term (5+ years). This will help keep you on track, making steady progress, no matter how small, in pursuit of all these different objectives.

Step 5: Take Consistent Action

Setting goals is one thing, but achieving them requires consistent action.

Nothing necessarily grandiose or dramatic. In fact the research suggests that tiny, regular steps are the best way to stay focused and achieve our goals.

Remember the old hare and tortoise story... yup, that tortoise, he had it figured out.

Start by creating a financial plan that outlines the steps you need to take to reach your goals.

I'll say it again - make those steps small. Tiny even. Itti-bitti, little shuffling steps. Just small enough to do something but not so big they scare you off your target. Ok?

Some examples of this could include setting a monthly budget, automating your savings, or meeting with a financial coach to develop a personalised strategy.

Remember, progress happens in the midst of these small steps.

And please always remember to celebrate your wins along the way! This is so important and SO often overlooked! Whether it’s paying off a credit card, hitting a savings milestone, or simply sticking to your budget for a few months. Do something significant to acknowlege your progress before taking that next step forward.

Story Time: How Fiona Aligned Her Financial Goals with Her Values

Let’s bring this to life with a real-world example.

Meet Fiona, a 52-year-old Human Resources executive who recently went through a divorce. She’s always been financially responsible but feels overwhelmed by the prospect of managing her finances alone. Fiona values freedom and family, and her vision for the future includes traveling with her children and retiring early to focus on a well-building project in Africa.

Fiona realised that to align her financial goals with her values, she needed to focus on achieving financial independence and creating a flexible lifestyle for her family.

She set herself the following SMART goals:

1. Short-term goal: Save $5,000 for a family vacation by contributing $400 a month for the next 12 months.

2. Medium-term goal: Pay off her remaining $20,000 in student loans within 3 years by increasing her monthly payments.

3. Long-term goal: Build an investment portfolio that generates $50,000 in passive income by the time she’s 55.

With these clear goals in place, Fiona felt empowered to take control of her finances and make decisions that aligned with her values and vision.

The $400 monthly contribution to savings didn't feel like sacrifice because it was crystal clear that this was going to fund the trip of a lifetime, so the process of saving became exciting and fun. This encouraged Fiona to turbo-charge her contributions into this account, by selling a bunch of old baby items that were in the attic on Marketplace. Fiona took these funds and channeled them into her vacation account, because she kept the end goal in sight and wanted to go above and beyond in pursuit of this.

Knowing that by eliminating those student loans would open up a doorway to creating a beginner investment portfolio, Fiona finally felt like there was an end in sight and a good reason to finally smash out the remaining balance. She took on as much freelance work (outside of her 9-5 job) as she could manage and every cent she earned from this she used to pay down the student loan balance.

Being free of the burden of her student loans was the motivation Fiona needed to become an enthusiastic investor, reading books on "how to invest" and realising she could make a start with tiny, regular amounts. Focusing on the goal of a portfolio that generates passive income by her mid-50's is keeping Fiona accountable in terms of where she spends her discretionary income each month and she is thrilled to be ahead of where she hoped to be, so soon after getting started.

Step 6: Review and Adjust as Needed

Life is full of surprises - that's a given, right?

Naturally your financial circumstances, you income situation or your priorities may change over time.

Pre-empt that and be flexible and honest with yourself.

Treat yourself to regular reviews of your goals and the steps you are taking.

Is something feeling too rigid? Adjust it.

Are you feeling deprived because there seems no room for "fun" in the budget all of a sudden? Then back off on those retirement fund contributions for a couple of months and see how it feels.

This winter really dragging and you just can't wait to take the kids to the coast in the Summer? Then use that motivation to super-charge your vacation savings, knowing you're going to make incredible memories playing in the surf when you take that long-awaited break.

Can we all agree: it’s hugely important to review those financial goals regularly and to be kind enough to yourself to adjust them as needed.

Whether you receive an unexpected windfall, face a financial setback or simply change your vision for the future, being flexible with your goals (and kind to yourself about it) ensures that they stay relevant and achievable.

Ready to Align Your Financial Goals with Your Values?

Setting financial goals that align with your values and vision is the key to creating a life that feels authentic, empowering and fulfilling.

By clarifying your values, envisioning your future and taking consistent action, you can achieve financial freedom and live the life that reflects who you truly are.

As a money coach for professional women, I specialise in helping women like you rewrite their money story and achieve financial success. If you’re ready to take control of your financial future and align your goals with your values, let’s work together to make it happen!

While you’re here, be sure to snag my free workbook, Map the Gap.

It’s designed to make money goal setting a breeze - so easy and effective that it’s perfect for building into your regular routine. Even if you’re just dipping a perfectly polished toe into the world of Money Coaching, you’ll find it simple to dive in and get started. Trust me, the results will be so fabulous you’ll be amazed!

There’s nothing to lose except your fear of failure, so go ahead and grab your copy here.