One exercise I do with my coaching clients very early on is to figure out their three financial goals. I encourage you to do the same.
One of the challenges about managing money in our world is just the vast number of ways that our attention is divided.
And it’s not just invocations to buy things, subscribe to things, and give to things. There are so many different achievements to strive toward, whether it’s directly money-related, or something that comes from a money-related goal.
It all gets very confusing, and you can’t do it all. Which is why one of the very first questions I ask my clients is this simple, but illustrative question:
“What are your three financial goals?”
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Coaching requires goals
As a financial coach, I help people make better financial decisions. I teach good habits, of course, but I also help guide them to where they want to go.
My coaching program is not a one-size-fits-all plan. I don’t say “okay, here’s what we do in session 4.” And that’s not because I like to improvise, more because everyone’s financial journey is a little bit different, and everyone has different needs.
More to the point, everyone has different goals.
And that’s why I start there. Before we start our first session together, I have my new clients answer the question of what their three financial goals are.
Why three goals?
You probably have a lot of goals. Way more than three. So why this focus on three?
It’s because I believe that you can you anything you want, but you can’t do everything you want.
You need to make choices.
Some people try to do everything, and then feel discouraged that they aren’t getting anywhere.
I always think of that old Scooby Doo cartoon, showing Scooby Doo running in four different directions at the same time. This is what happens when you try to do too many things at once. You need to cut down the number of goals, so that you have any hope of getting traction with any of them.
Meanwhile, some people are singular of focus, and they want one thing. In that case, I still think more than one financial goal is important for these people. After all, sometimes you get stuck on something, and if you don’t have any other goals, you will lose focus and get discouraged.
Ultimately, I’ve found that having three financial goals provides the best balance between focus and diversification.
Ideas for financial goals
Now, at this point, if you’re open to it, I would suggest writing down your three financial goals right now.
But for some people, it’s not so easy. You might want some inspiration as a way to unlock what feels most authentic to you.
So with this in mind, I collected a list of some financial goals inspired by what my past clients have decided upon.
- Figure out how to know when/if retirement is an option
- Consolidate retirement accounts
- Develop a long-term financial plan
- Build up my credit score
- Understand the difference between good debt and bad debt
- Create plan to avoid new debt
- Stop feeling guilty every time I spend money on clothing or restaurants
- Have more savings for emergencies
- Establish savings for kids
- Pay for kid’s college
- Buy a home
- Ensure I have money to finish school
- Figure out what I can afford in my new career
- Become more comfortable with being generous both to myself and others
- Get out of debt
- Learn how to make smarter financial decisions
- Feel more confident about money
- Reduce my avoidance in talking about money
- Be less stressed about money
- Have more visibility into spending
And this is just the start. As you can see, there are lots of goals that you could decide on. But remember, we’re going to limit this to just three.
Find your goals
Ultimately the right way forward is the one that feels the most authentic to you. It’s no good to come up with a goal that someone else told you was important. That’s their goal, not yours.
That’s why the above list can help, but it’s only a guide. I want you to come up with your own three financial goals. The sooner you do that, the sooner you can start to focus your energies around how to make them all happen.
