My husband and I have always been goal-oriented people. Within a year of dating, we knew we wanted to get married and started planning the ‘where, when and how’ of making it happen. We both wanted to have our children while we were still young so we set a goal of 2 children before I turned 30.
We bought our first house with the understanding that it was a 5-year ownership before we upsized to something in a better school district. And we have a very firm retirement security plan because our goal is to retire by the time my husband is 58 (in 15 more years).
In order for us to ensure that we have enough money to retire at our target age, retirement security HAS to be a huge priority when setting our financial goals every year. I am a firm believer in having a plan for every stage of life…flying by the seat of my pants is just not in my nature.
Without financial goals to help us ensure retirement security, we could be working until we are 70 and that is just not appealing to me in the least! If you would like to set a few financial goals so that YOU can retire with a little bit of a nest egg, here are a few simple tips:
Setting Financial Goals to ensure Retirement Security
1. Think of your financial goals as a vacation destination.
In order to know how to GET to your vacation destination you first need to know WHERE that destination is. You wouldn’t decide to drive to Hawaii. Nor can you reach your financial goal without first defining that goal in detail.
2. You must prioritize your spending.
If retirement security is important to you then you need to make funding that retirement a priority. That means maybe you need to start eating out less, buying fewer shoes, or downgrading your cell phone plan. Fund your retirement account FIRST, then spend the leftover money in other areas.
3. Remember that this is a long-term process!
Do not set your financial goals for retirement security only to forget about them next week. They must remain a high priority if you are going to retire with financial security.
4. Your goals will change:
While it is important to keep your goals in mind, remember that they may change based on your life situation. The arrival of an unexpected child or you deciding to go back to school will throw off your plan. Be flexible.
5. Educate yourself:
It is difficult to understand the ins and outs of financial planning. There are so many ways to save and so many funds to invest in that it can be overwhelming. Start educating yourself about financial planning and retirement security so that you make smart choices along the way.
Diane is a professional blogger and nationally certified pharmacy technician at Good Pill Pharmacy. She earned her BS in Microbiology at the University of New Hampshire and has worked in cancer research, academics, and biotechnology. Concern over the growing incidence of human disease and the birth of her children led her to begin living a more natural life. She quickly realized that the information she was learning along the way could be beneficial to many others and started blogging and freelance writing to share this knowledge with others. Learn more about her HERE.