Written by: M Katie Helle, CPA
Setting financial goals as a young adult can help you build a stable, independent future. Whether saving for a car, college, or just a rainy day, goals give you direction and motivation to make smart money choices. Here’s how to set realistic goals and reach them.
Define Your Goals with the SMART Method
SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound. For example, instead of “I want to save money,” a SMART goal would be “I want to save $500 for a new laptop in six months by saving $85 each month.” SMART goals are easier to track and more motivating since they are clear and attainable.
Prioritize Short-, Medium-, and Long-Term Goals
Financial goals can vary in size and time. Short-term goals are usually achievable in under a year (like saving for a concert). Medium-term goals might take one to five years, such as buying a car, while long-term goals, like saving for college or a future home, can take five or more years. Listing your goals by priority helps you allocate your savings effectively and decide where to focus first.
Break Down Big Goals into Small Steps
Large goals can feel overwhelming, so breaking them into smaller steps makes them more achievable. If your goal is to save $1,000 in a year, break it down to saving about $20 per week. This way, progress feels steady, and you’re less likely to lose motivation. Tracking each small step can make reaching the larger goal feel more manageable.
Use Tools and Apps to Track Progress
Budgeting and saving apps like Credit Karma, YNAB (You Need a Budget), or Goalsetter can help you track your progress and stay accountable. Many of these apps allow you to set specific goals and update your savings progress, showing you exactly how close you are to reaching your target. Some apps also offer reminders, so you can stay on track even when life gets busy.
Celebrate Your Milestones
Reaching financial goals can be challenging, so it’s important to celebrate milestones along the way. When you’ve saved your first $100, for example, treat yourself to a small reward (within budget). Recognizing your progress keeps you motivated and reinforces positive habits. Saving money doesn’t have to be all work—it’s about balancing your current needs and future goals.
Setting and achieving financial goals gives young adults the confidence and control to shape their future. By setting SMART goals, prioritizing them by timeframe, breaking down big goals, using tools to track progress, and celebrating milestones, you can create a solid plan for financial success. Start small, stay consistent, and enjoy the satisfaction of seeing your dreams take shape through your financial planning.