Do You Have a Financial Goal?
You might be wondering how this topic connects to financial goals after discussing the need for a new mindset. Don’t worry—we’re exactly where we need to be. This shift in perspective is essential to understanding and achieving your aspirations.
When I ask people about their financial goals, I often hear responses like:
- “I want security—having a stable job to provide for my family.”
- “I want to be comfortable, knowing my bills are paid, helping my kids with college, and maybe retiring someday.”
These are common responses, shaped by societal norms about success and what feels achievable based on past experiences. But to truly define financial goals, we need to go deeper.
Goals vs. Wishes
It’s important to distinguish between a goal and a wish. As we’ve discussed before, a goal requires specific, actionable steps to achieve it, while a wish is more of a hopeful desire without a plan.
For instance, you may wish to be wealthy, but wishing alone won’t get you there. Even if you’ve managed to save some money, many people focus solely on financial security rather than actively working to build wealth.
Three Types of Financial Goals
To pursue financial success effectively, it’s crucial to understand and differentiate between the three main types of financial goals:
- Security Goals: Ensuring basic needs are met and financial stability is maintained.
- Comfort Goals: Achieving a lifestyle where bills are manageable, and there’s room for some extras, like funding education or planning for retirement.
- Wealth-Building Goals: Actively working toward creating and growing long-term financial prosperity.
Understanding these categories is the first step in aligning your mindset with actionable strategies to achieve the financial future you envision.