Creating Financial Goals Around Your Lifestyle

Financial success arises from careful planning, informed decision-making, and deep understanding of one’s own lifestyle and ambitions. It’s a journey that surpasses merely accumulation of wealth, focusing instead on aligning financial strategies with personal goals to establish a fulfilling life.

Setting the Stage with Clear Financial Goals

The first step towards financial clarity is defining your goals. These should reflect your life’s ambitions — be it living debt-free, retiring early, or owning your dream home. Each objective acts as a milestone, offering both direction and motivation. This ensures that each financial decision you make is a step closer towards your desired future.

The significance of articulating and planning for these goals is underscored by a study conducted at Dominican University in California. This research involved 149 participants and explored how the processes of writing down goals, sharing these goals with friends, and creating a specific action plan could influence the likelihood of achieving said goals. The findings were telling: at the study’s conclusion, only 40 percent of those who had merely contemplated their goals without further action were at least halfway toward realising them. In stark contrast, among the group that diligently wrote down their goals, devised an action plan, and sent weekly progress updates to a friend, 76 percent were at least halfway to accomplish their goals. [1]

These findings highlight the power of not just setting goals, but actively engaging with them through written plans and social accountability. When applied to financial planning, this approach can dramatically enhance your ability to reach your financial aspirations. By clearly defining your financial goals, documenting a step-by-step plan to achieve them, and perhaps even sharing this journey with a trusted friend or adviser, you significantly increase your chances of success. It’s a method that adds structure and accountability to your financial journey, transforming aspirations into actionable, achievable milestones.


Aligning Lifestyle and Financial Well-being

A harmonious financial plan complements your current lifestyle, while paving the way for future goals. This balance is achieved through careful review and adjustment of your spending, saving, and investing habits. An organised approach to finances empowers you, granting control and confidence in your financial journey.


The Power of Specific Goals

Ambiguous goals lead to uncertain outcomes. Specific, well-defined financial targets, on the other hand, offer a roadmap to success. Identifying clear objectives for every aspect of your life, from education funding to retirement planning, and setting a precise value and deadline for each, transforms vague ambitions into achievable objectives.


Keep It Realistic

While ambition fuels progress, realism anchors it. Realistic goals are those that balance optimism with practicality, ensuring that your ambitions are attainable within your current means and circumstances. This sense of realism will also motivate you as you continue to reach them, making the journey towards each milestone rewarding.


Categorising Your Goals

Distinguishing your financial goals into short, medium, and long-term groups is not just about timing—it’s also about aligning these goals with your current life stage and individual risk tolerance. This approach enables you to craft strategies that are not only time-appropriate, but also reflective of your comfort with risk and life’s changing circumstances.


Short-term Goals

These are goals you aim to achieve within the next five years. At this stage, you might prioritise stability and liquidity due to the shorter timeframe, especially if you’re in the early stages of your career or have immediate financial needs, such as building an emergency fund or saving for a significant purchase.

Medium-term Goals

As you progress to goals with a 5-10 year horizon, your risk tolerance could increase, allowing for more growth-oriented investments. This period often coincides with mid-life stages, such as career advancement or family growth, where you might be more financially secure and willing to take calculated risks for higher returns.

Long-term Goals

Goals extending beyond a decade are typically aligned with long-term growth and retirement planning. Your approach here may evolve with your life stage. For younger investors, this could mean a higher risk tolerance, with a focus on equities. As you near retirement, a shift towards preserving capital and reducing risk is common, reflecting a change in priorities and risk appetite.

It’s also crucial to acknowledge that life stages and risk tolerance are not static. They change as you move through different stages of life, such as transitioning from full-time employment to retirement, or experiencing significant life events like marriage, parenthood, or receiving an inheritance. Each of these stages requires a reassessment of your financial goals and the strategies you’ve set out to achieve them.

By taking into account not only the timeframe, but also the specific life stage and associated risk tolerance, you can ensure that your financial plan remains dynamic and robust, capable of adapting to your evolving needs and circumstances. This approach underscores the importance of periodic reviews and adjustments to your financial strategy, ensuring that it continues to align with your personal goals, risk tolerance, and life changes.


The Role of Professional Guidance

While personal effort is invaluable, the expertise of a financial adviser can dramatically enhance your financial planning process. Advisers offer personalised advice tailored to your unique circumstances and goals. They provide insights into financial markets, help navigate tax complexities, and adjust your plan as your life evolves.




Understanding your aspirations and creating a financial plan to achieve them is the core of personal finance. By setting realistic goals and considering professional advice, you create a robust framework for financial success.

For those looking to refine their financial strategy and align it with their lifestyle, our team is ready to help. We are committed to helping you achieve your financial goals. 


[1] Dominican University of California – Strategies for achieving goals, resolutions.