In 2022, UK citizens collectively deposited £55 billion in banks and building societies. Despite this, approximately 56% of working-age adults in the UK are considered "inadequate savers."1
This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.
To many, the path to financial freedom and security may seem tricky, but there’s one crucial strategy that can help: learning how to set financial goals.
Whether buying a home, retiring comfortably, or simply saving for a rainy day, having clear financial objectives may better guide short- and long-term decision-making.
For those who have never sat down and carefully reviewed their income and expenses, setting financial goals can be overwhelming.
These general tips may be a good starting point:
Knowing what financial goals to work toward can help provide a sense of direction and purpose when planning.
Some common examples of financial goals include:
When considering financial goals, it may be helpful to include both long-term and short-term ones. Long-term goals usually require a commitment of more than a year and typically involve large sums of money. Meanwhile, short-term goals can typically be achieved within a year and are often stepping stones towards long-term goals.
Everyone’s financial goals will differ depending on their individual circumstances. Take a step forward with financial goals by being realistic and being open to adjusting when situations change.
Staying committed to a budget or savings plan may be challenging. These potential tips may help individuals keep financial goals within sight:
In addition to setting financial goals, personal budgeting can be a useful tool to implement. Learn more here.
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