15 Financial Goals to Set Right Now

Is it too late to make financial resolutions for the year? Absolutely not. We may be more than halfway through 2022, but it's never too late to visualize the financial future you want and set reasonable goals that you can consistently move toward.

And if you're not even sure what those financial goals should look like, you've come to the right place. Here are 15 financial goals to set right now that could change the course of your financial life now and in the years to come.

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There's no point in setting financial goals that are not within your power to reasonably achieve. That doesn't mean you can't set high bars of excellence for your financial health, and that you can’t gradually move toward larger, more lofty goals over time.

Take some time to sit down and write out both your short- and long-term financial goals. Whether it's saving for a car, buying a house, putting money aside for college, investing more money in the stock market, or something else, list your goals out one by one and set a timeline by which you want to hit each of those objectives.

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One of the simplest and most effective ways to get your personal finances where you want them to be is to live within your means. This may sound like a no-brainer, but the reality isn't so simple. In fact, studies have shown that most Americans not only live beyond their means, but with the current state of hyperinflation, well over half of Americans are living paycheck to paycheck.

While some of the factors that may lead to this situation are beyond one individual's control, and many expenses can't simply be eradicated, you may have more control than you think.

For example, if you are a frequent credit card user, and you are spending more than you can reasonably pay off when the due date rolls around, you are living outside of your means. Whether it means curbing discretionary spending almost entirely for a time and putting yourself on a strict debt repayment plan, aligning your finances to live within your means is an important first step to improving your overall financial health.

Even small but regular expenses can tack hundreds of additional dollars onto your outlay each month. For example, that coffee delivery order may seem minor on a day-to-day basis, but over a month, you might be surprised how much money you're spending on small expenses that significantly add up.

If you don't currently have a budget, now is an excellent time to make one. What does that mean? In a spreadsheet, journal, or budgeting app (these can come in really handy), outline your income and expenses in full. If you are self-employed or your income is variable, estimate it to the best of your ability. Then, outline your essential expenses (including mortgage or rent), recurring expenses that tend to change in dollar amount (such as food and utilities), other regular costs (like subscription services or food delivery), and any miscellaneous expenses you can think of.

If you add up your expenses and they are equal to or more than your monthly income, don't lose heart. See what costs are nonnegotiable and which you can cut back on. Even if it means significant lifestyle changes in the short term, consistent changes to your spending in the immediate future can make or break your long-term financial goals.

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The way you structure your budget may look very different than someone else's, and this really comes down to your personal spending habits, the amount of money you have to work with in a given month, and what objectives you've outlined for yourself. For example, someone several decades away from retirement is likely to have a completely different style of budget than someone who plans to retire much sooner.

If you would prefer to rent rather than buy a house, that may also change the way in which you structure your budget and steps to reach your personal financial goalposts. In addition, your goals will likely span a variety of timelines, from objectives you hope to achieve in the next few years (e.g., save X amount of money by 2025) and ones that may take five, 10, or 20 years to hit.

Structuring your spending and saving plan around these various objectives will not only help you determine the most effective ways to align your budgeting needs, but it will also give you an idea of how long it will take to achieve them given your current financial situation and where you may need to make some changes to your current outlay.

No matter your salary or short- and long-term financial objectives, you need to be regularly setting money aside in savings, no matter what. Even if it's just $100 at first and you build from there, mentally committing a certain dollar amount of money to build up your cash position that you won't spend and following through on that each month is a great start.

Over time, you can build up a great position of cash to save as well as to invest. Just be sure you're not investing any money that you think you'll need again in the next few years.

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If your emergency or rainy day fund is lacking, this is the time to work on shoring that up. Your rainy day fund is not money that you should be investing. This is money that you set aside that you hope you won't need in the near future but that can provide peace of mind and cash on hand in the event of something like a medical emergency or a job loss. Ideally, you should have at least six months of expenses set aside in this fund, but you may want to include more depending on your financial situation and personal needs.

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Letting your cash sit around doing nothing, particularly in the high inflationary environment we're living in, can be a waste of your hard-earned money. There are so many ways that you can put your money to work for you. Now, I’m not talking about money you've put into savings or your rainy day fund.

But if you have extra cash lying around, there are plenty of ways to put it to good use, whether that's investing in the stock market, sticking some of it in a high-yield savings account, investing in real estate, or all of the above.

Whether it's starting your own online business, putting your crafting skills to work for extra money, launching a clothing boutique, starting your own digital agency, or another venture, there have never been more opportunities and resources for people to turn their dream side hustle into a reality.

In fact, many businesses can be started with little to no overhead cost, with a website up and running in just hours. Putting your skills to work for you requires planning and hard work, but consistency and dedication can pay off and provide you with an additional stream of income that proves invaluable over time.

Even if you don't have a specific business idea you'd like to implement, offering gig services online like copywriting, virtual assistant services, or freelance software development services, just to name a few, could net you anywhere from an extra few hundred dollars a month to a full-blown secondary source of income.

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While it might seem like the series of digits that make up your credit score are just that, these numbers can make or break many aspects of your financial life. When it comes to renting an apartment, getting approved for a loan, or even getting a job in some instances, your credit score is a key component.

There are a variety of factors that make up that outcome of your credit score, including any balances you carry, your payment history, the duration you've had your credit accounts, and the types of cards you use.

For example, if you use a card with a high interest rate and fail to pay down your balance each month, that interest rate will be tacked onto the amount you owe. The longer you carry that balance and the more interest that's added on, the greater the impact on your credit score.

Do you have long-standing debts like student loans, credit card debit, or any other type of debt? An important financial goal you should set right now is to work on paying those down. Now, not all debt is equally detrimental to your financial health. In fact, certain types of debt can even help you in the long run (e.g., taking out a loan to complete a degree that will help you get a better, higher-paying job).

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Your debt repayment plan will be very personal to you, the type of debt you have, and the timeline in which you can reasonably afford to pay that debt off. Whether it's a one-year plan or five-year plan, outline all the debt you currently owe and structure a payment schedule for yourself that you can meet each and every month.

Focus on debt with higher rates of interest first, and set an end date for yourself by which you intend to pay it off. In addition to regularly paying down this debt each month, you may also need to put a halt on certain types of spending in order to avoid tacking more onto that debt and to give you more capital to put toward that repayment plan.

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It's no secret that in addition to recurring costs like rent and food, insurance is one of the highest costs that cuts into Americans' budgets each month. Between health insurance and auto insurance alone -- even with many employers paying the majority of healthcare premiums for their employees -- most Americans still spend over $1,000 each month on these plans.

You might be surprised how comparison shopping for insurance plans could potentially save you hundreds of dollars a month. Whether it’s evaluating your employer-sponsored healthcare plans or marketplace healthcare plan options (i.e., if you’re self-employed or your employer doesn't offer sponsored plans), or even switching plans for your homeowner, renter, or auto insurance, it's worth doing some digging.

Comparison shopping for any type of insurance policy does take significant time and effort, but the research and time investment could pay off in serious savings and even help you identify a plan that better meets your current needs.

Another great financial goal to set for 2022 and beyond is to learn more about and invest in the stock market. Even if you're already in the stock market, investing is a constant learning journey. Taking the time to carefully research each stock before you buy in and building a diversified portfolio across a number of sectors and companies can help you build a stronger financial future and put your hard-earned money to great use.

Don't discount the value of simplicity when it comes to investing. For example, a simple investing method like dollar-cost averaging can be applied to your favorite companies time and time again and help you build a sizable (and profitable) portfolio over a period of years.

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The modern age of investing is unlike any we've seen in the past. The opportunities for speculation are virtually endless. The trouble is, fad investing rarely works out in the end, and while a few people may profit in a short period, most are left disappointed.

Avoid investing in hype or on a wave of emotion, such as panic or fear, surrounding a particular investment. Make investment decisions based upon a sound thesis about the underlying business, the industry it operates in, and management's ability to execute on the vision.

As you build your net worth over time, whether through your stock portfolio, upward mobility in your professional field, and/or building multiple streams of income, it can be tempting to increase your spending as your earnings increase.

However, it's always important to remember that the future is uncertain. Keeping your lifestyle in check, even if you have more capital to work with now than you did a few years ago, will enable you to save, invest, and manage and pay down debt, without putting yourself in a financial position that you may not be able to live up to in the future.

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Presented by Motley Fool Stock Advisor
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Investing in a better financial future for yourself isn't a one-time decision. It involves a series of steps over time, consistency, and the patience to put the work in to achieve more financial freedom. Whether it's paying down debt, cutting back on spending, investing in the stock market, saving more money, or all of the above, work toward your personal finance goals one step and one day at a time.

Don't beat yourself up over past financial mistakes. It’s always the right time to learn, do better, and start fresh toward building the financial future that you want.

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