Where do you want to go, and how will you get there? These are the questions you need to ask when setting your financial goals.

At the heart of financial life planning are the actions that will bring your personal ambitions to fruition. When you start taking a more targeted approach to your money, a world of potential opens up.

Grosvenor Wealth Management has years of experience in helping clients set and achieve their personal and financial goals. We know material gain isn’t at the heart of personal fulfilment.

That’s why we’re committed to doing things differently, and taking a fresh approach centred around your personal dreams and values.

Why Are Financial Goals Important?

Making progress with your money can sometimes feel impossible, but setting goals makes tangible even the most distant monetary dreams. By breaking down long term goals into a series of steps, you’ll start to see how each decision you make on a day-to-day basis connects and contributes to your overall financial wellbeing.

You’ll be motivated to change your mindset, spending habits, and determine what actions you can take today to make your vision for the future a reality. Financial planning and setting goals might reduce the stress and anxiety you may have surrounding money.

It’s easier to track progress, understand your position, and make each day part of a plan for your future.

Short Term, Mid Term, and Long Term Goals

Financial goals can be split up into three different categories: short term, mid term, and long term.

• Short Term Goals – these are highly focused targets with an immediate time horizon that you hope to achieve in the near future. Anywhere from, the next couple of months to a year. Examples might include a bathroom renovation or setting a budget.
• Mid Term Goals – sitting somewhere between short term and long term, mid term goals have a timeframe of 3-10 years and are typically conceived of as stepping stones to larger ambitions.
• Long Term Goals – these are the goals that have a much longer time horizon such as financial security in retirement. Because these goals take a long time to achieve, splitting them down into short term and mid term goals is an advisable approach.

How to Set Financial Goals

Ready to start setting some financial goals? Here’s what you need to do.

Establish Where You Are Now

Before you decide where you want to go in the future, it can be helpful to assess your current financial situation. This might include savings, debts, investments, and cash flow forecasting. Taking stock will help you identify what’s attainable, and decide on realistic timeframes for each target.

Consider Personal Values and Ambitions

Financial life planning is exactly what it sounds like: financial planning for your life – not anyone else’s. That means you need to have a long hard think about what matters most to you, considering everything from core values to personal aspirations to family.

Make them SMART

Most people use the SMART framework when setting financial goals. This refers to setting goals that are SPECIFIC, MEASURABLE, ATTAINABLE, RELEVANT, and TIME-RESTRICTED. Taking this approach means setting financial goals that are much more likely to come to fruition.

Write Them Down

Once you’ve established the financial targets that will bring about your vision for the future, it’s time to write them down. This will make your goals feel more concrete, and will help keep you on track. With a written document detailing your plans, you’ll be better able to hold yourself accountable.

How GWM can help

Getting professional advice is the best way to reach your financial goals and secure your future. With a financial adviser by your side, you can create a tailored life plan that takes into account your current situation, life goals and how you’ll get where you want to be.

We provide clear and concise advice to help you understand your financial capabilities better. Get in touch today to find out how we can help you plan for the future.

PLEASE ALWAYS REMEMBER: Grosvenor Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority. The value of investment can go down as well as up and you may not get back the original amount you invested. Tax treatment is dependent on individual circumstances and may be subject to change. Tax planning is not regulated by the Financial Conduct Authority.