Personal Financial Goals You Must Make In Your Lifetime

It can be easy to set our personal financial goals aside, especially if or when we are married and have children. Today, we are going to prioritize you and personal financial goals you must make in your lifetime!

In order to create the most profitable budget this year, you must review your personal financial goals over your lifetime. Then, we can determine which of those goals we can accomplish this year. We covered how to maximize your income in the previous post. If you haven’t downloaded your free budget template yet, you can do so here now and create a budget for this entire year! Grab it now, so we can start filling out the first part of the template and list out all your goals. We also cover financial goals for married couples here and children here.

Your Most Important Investment

Your Physical Health

Your personal financial goals should start with investing in your physical health. The BIGGEST financial mistake of my life was not prioritizing my health. As a young mom in the early 2000s, I was blessed to have a great job with great benefits. Being the saver that I am, I still made it a point to save as much money as possible.

I pinched every penny everyhwere I could, especially when it came to groceries. I liked that the rest of my bills were pretty consistent and I could easily predict how much they would be. However, my perfectionism was highly bothered that I couldn’t control the cost of groceries as easily as my other bills. So, I purchased the cheapest food for me (and the healthiest food for my daughter). I had a decent income to afford healthy food for the both of us, but I still chose to consume a ramen diet. I had thousands saved and invested but ate like a starving college student.

Within four years, I was experiencing horrible health issues. I developed automimmune conditions, and continued to experience chronic health issues for over a decade. It wasn’t until 2019 that I FINALLY committed to a diet for autoimmune issues and it has been the best investment of my life! I am the most productive I have ever been. The funny thing is, I don’t spend relatively too much more on groceries then I did back in the 2000s. But, I spent MUCH more in years not being able to work due to being so ill. All that money I was saving on cheap food went into covering living expenses when I couldn’t work.

I share all this to say, PRIORITIZE YOUR HEALTH. A lot of financial gurus will promote eating cheaply in order to achieve your financial goals, (especially if you are in the debt payoff stage of life). And some people’s bodies don’t show the negative effects of a poor diet for years. However, please learn from my experiences so you don’t have to learn the hard way that your body is highly effected by a poor diet.

To put all this into actionable steps, grab your budget template, and list out what you believe you need to do in order to achieve your best physical health. Here are some examples of what you can invest in for your physical health:

• invest in more nutrient-dense groceries
• invest in a high-quality juicer and/or blender
• invest in nutritionist coaching
• invest in gym membership and/or classes
• invest in home gym equipment
• invest in good-quality walking/running shoes
• invest in starting a garden
• invest in regular massages
• invest in chiropractic care
• invest in holistic healthcare services

We will eventually insert these goals into your budget. So, be thorough with your list and we will see how to fit all these goals into your budget. While I am all for saving as much money as possible, I am even more for investing in your health as much as possible.

Your Mental Health

You personal financial goals should also include investing in your mental health. My physical health was not only deeply affected by my diet, it was also deeply affected by my mental health. Being a parent is a stressful job. You can’t help but care so dang much! Being a single parent, working full time can be even more stressful. Stress is one of the most damaging things to our bodies. I didn’t inherit autoimmune issues. I developed them.

We ALL go through stressful difficulties and circumstances in varying degrees whether you are single with no children or married with a huge family. Not dealing with our emotions can lead us to unknowingly manifest them into all areas of our lives. So, taking care of our mental health is SO IMPORTANT in order to prevent the long term damage that can occur when not dealing with our emotions as they come up. This long term damage can affect so many things, including our health, and especially our relationships with our loved ones, friends, and colleagues.

If you are thinking, “Ugh! I just want to create a budget for this year, Terry. Stop with the physical and mental health goals stuff!” I get it! BELIEVE ME. I just want to get things done! I want you to have a budget set up already too! BUT, I want you to remember how important your physical and mental health are so these goals don’t get lost in your focus to make the most profitable budget this year.

My absolute best investment I have ever made in myself (and my daughter) was to get professional counseling. I know, I know … a lot of people think it’s just for crazy people. After getting professional counseling myself, I felt like EVERYBODY should get it. And, whenever I run into someone who says they got professional counseling, they ALWAYS say it was the best thing they ever did for themselves. We (and our parents) aren’t born with the skills to properly deal with all of our emotions. And, we may be going through things that no one else around us is going through. So, getting professional help to deal with your experiences is totally worth it. A lot of therapists and counselors charge on a sliding scale based on your income. You can have sessions for as low as $25.00. Simply search professional counseling in your area and ask if they charge on a sliding scale. Even if the office you call doesn’t provide services on a sliding scale, they will always refer you to one that does.

There are lots of ways to invest in your mental health besides professional counseling. So, to put all this into actionable steps, grab your budget template, and list out what you believe you need to do in order to achieve your best mental health. Here are some examples of what you can invest in for your mental health:

• invest in professional counseling
• invest in self-help books
• invest in new hobbies
• invest in scheduled spa days
• invest in time with good friends

You essentially want to invest in anything that allows you to have a mental break, deal with your emotions, and relax. We will eventually insert these goals into your budget. So, be thorough with your list and we will see how to fit all these goals into your budget. Again, while I am all for saving as much money as possible, I am even more for investing in your health as much as possible.

Don’t Let Life Pass You By Without Doing These Things

Your personal financial goals should include some of these things below that can easily pass you by if you aren’t careful! Now in my fourties, I am just now doing the things I have been wanting to do for decades regarding my income. Yes, I have had extenuating circumstances as you have seen in the previous sections above. Also, yes, I have invested in my health and CAN do all the things I want now. If I didn’t lose years due to illness, however, below are the things I would have done twenty years ago regarding maximizing and accomplishing my financial goals (besides investing in my physical and mental health). Well … if they had the technology then that is available now, this is what I would have done.

Figure Out What You Really Want

The first of our personal financial goals that can easily pass you by is not figuring out what you really want regarding how you bring in income. We typically are working for most of our adult life. After all, it takes money to live. However, it can be easy to get lost in all the working to live that we never do the living. So, we might as well enjoy our jobs!

Growing up in a Filipino family, it was naturally expected of me to become a nurse (which I did not become 😆). You may just be entering college or the work force and deciding on your career now and may also have expectations from others regarding your career choice. Or, you may have even followed those expectations years ago and are still working in the that field. Whatever stage you are in, whether you are deciding on your career choice now or have been working for decades, take a step back, and decide if this is what you really want. Sometimes you don’t know what you want and you need to try different things before you can decide. To put this into an actionable step, grab your budget template, and list out what you want regarding your career. Here are some examples of what you can do to help narrow things down to what you really want:

• First, if you are working now and you don’t like your job, are not passionate about it, or just know you don’t want to work there forever, don’t just leave all of a sudden! Focus on what you are thankful for about your job. List on the goals tab of your budget template how much longer you plan to work there while you seek out other income opportunities. Knowing that there is an end date can help you to make the best of your remaining time there while you seek other ventures.
• If you know what you would really rather be doing for your career choice, list out what that is. Today, take one step toward reaching that goal. That could include applying to a job in that field or to a school that will help you obtain a degree or certificate for that job, etc. Whatever your new career choice is, take one action today to bring you closer to that goal.
• If you don’t know what you would rather be doing for work, start researching. This can involve seeking out what other jobs are available in your area now, what classes are available, or simply searching online through lists of possible careers. You can then narrow things down to a few choices and do the action steps in the bullet-point above. Rather than staying in a job you are unhappy with, you can branch out to find and do something you really love. Remember the first bullet point and don’t quit before you have something else solidified!

As I shared earlier, I had an excellent job with excellent benefits. I would have stayed at that job because I was comfortable. It took our entire department being laid off for me to truly consider pursuing my passions and what I really wanted to do. If you are only staying at your job because you are comfortable but dream about doing something you love, this next section is for you.

Turn Your Passion into Income

This is my favorite thing I am doing for own personal financial goals. If you are not required to work to provide for your living expenses, take advantage of this time! Or, while you work that job which provides for your living expenses, start sharing your passions now! Simply focus on sharing quality content and build your following by sharing your passions on social media and eventually a website. Technology today is made for entrepreneurs as people can much more easily find you by searching the internet regarding things they are interested in and things they need help with. So, if you have a passion that others share interest in or that could help others, you could eventually monetize it and turn it into products or services. Start now by simply sharing. I will eventually go into more detail about how to make money from your passions. Today, to put this into an actionable step, grab your budget template, and do the following:

• list out what your passions are
• create social media accounts
• take and post your first picture, video, or graphic

To be straightforward, while it is absolutely fantastic if you have a great job with great benefits, the truth is, depending on what your job is, if you are employed under someone, you are probably working to make more income for higher ups. Your income is determined by your higher ups and the income for you can plateau for most jobs.

This is why I encourage you to start a business from your passions. The opportunities for creating income are endless! YOU determine how much you can make and not someone else. The best part? It can all start with a simple post that you make today! Then, it’s just a matter of being consistent.

Financial Goals that Should Be Standard

Say No to Debt

If you have found me before getting into debt, hooray! Congratulations to you because you are the rare few who realizes that DEBT SHOULDN’T BE NORMAL!

If you have found me after getting into debt, hooray! Congratulations to you because I show you how to pay off your debt the quickest way possible with the least amount of finance charges here. BUT, don’t do these calculations yet. We are focusing on listing out our personal financial goals today and will go over debt payoff later during our budget challenge.

I want to make this clear: no one should feel condemned if they decide to take out student loans, a mortgage, auto loans, etc. We each have different situations and sometimes taking out loans makes sense for you. If I can save you the trouble, however, paying for as much as you can in cash will save you from wasting money on interest and finance charges which go toward nothing. Eventually, I will show you how to calculate when a loan makes sense if your investment interest rates are higher than your loan interest rates. For now, depending on whether or not you have debt, grab your budget template, and you can list out any of the following pertaining to you:

• remain debt free
• pay off debt as quickly as possible
• do not add to debt

And, NO, you should NEVER have credit card debt! Credit cards have the highest interest rates! Again, those finance charges go toward nothing! Sorry I’m yelling! If you are reaching for a credit card, you are not budgeting your income correctly. By the end of this month, with your new budget created, you will never add to your credit card debt again. IN FACT, you should be MAKING MONEY from your credit cards! I share about how I do that here.

For now, let’s focus on how to plan to pay for major purchases in cash.

Pay for Major Purchases in Cash

Today, we are focusing on making and listing out our financial goals. Later in this budget challenge, we will go into detail about the how. Remember, as I stated in this video below, it is important to list out our lifetime financial goals so we can focus on accomplishing what we can this year.

So, regarding paying for major purchases in cash, here is what realistically makes sense regarding the timing of making these major purchases.

Purchasing Vehicles

A good rule of thumb regarding purchasing vehicles is to purchase a used vehicle that you will replace every 15 years, on average. The younger you are, the cheaper and older the car will probably be and the sooner you will replace it. The older you are, I suggest purchasing a car between one to three years old and keeping it for 15 years. For the most part, with regular maintenacne, the average car will last just fine for this long.

Purchasing a vehicle new is not the greatest financial decision as it immediately loses value as soon as you drive it off of the lot. A vehicle that is only a few years old is typically still in great condition and costs thousands less than new. With the average driver who takes care of basic maintenance consistently on the vehicle, it’s a win-win to purchase a used vehicle. So, all it takes is a little shopping around and you can find a vehicle in excellent condition with low mileage. I, personally, purchased a vehicle that was three years old from a stay-at-home mom. It was in excellent condition and would have last me several more years (if it weren’t stolen 😒). That’s a whole other story … but I did get an excellent settlement because I had all my receipts! (I share how to organize your paperwork here.)

So, today, grab your budget template, and do the following:

• note when you believe you will need to purchase a new car
• note every 15 years when you will need to purchase a new car again

When we set up your budget by the end of this month, we will note how much to save each month for your next vehicle. That way, you won’t have to take a out a loan when you need a new car and waste money on finance charges!

If you already have an auto loan, we will go over how to pay it off more quickly or how to decide how much car you can afford here.

Purchasing a Home

Investing in real estate can be one of the most investment-worthy jobs. If working or investing in real estate or becoming a broker is not for you, you will probably eventually want to purchase a home for yourself to live in long term. But before you start checking out real estate, I want you to remember there are some benefits to renting for now and purchasing later.

• You don’t have to worry about major repairs
• You don’t have to worry about home owner’s insurance
• You don’t have to worry about property taxes
• You can pay very little for renter’s insurance
• Your rent can be relatively low in comparison to paying a mortgage depending on the market and area

If you were to take out a mortgage for a place you don’t plan to live in for more than a few years, you would lose money if you were to sell it and purchase again where you really want to live. Patience will pay off for you.

So, though there are many benefits to purchasing a home, patience can pay off in so many ways:

• Instead of paying hundreds or thousands in interest, you can pay less in rent (depending on the type of home you plan to purchase).
• For every penny you save for a home now, the more you can put toward your down payment (if not the entire value of the home), and the less you will pay in interest.

So, today, grab your budget template, and do the following:

• list when, ideally, you would like to own your first home
• list when, ideally, you would like to upgrade your home (we go over this in more detail in what financial goals to set with your spouse and for your children)
• list when, ideally, you would like to downgrade your home (i.e. the empty-nester who needs to live in a one-story home … again, we go over this in more detail in what financial goals to set with your spouse and for your children)

We go over in detail how to pay off your mortgage more quickly if you do take out a loan OR how to decide how much home you can purchase here. Also, when we set up your budget by the end of this month, we will note how much to save each month for your first or next home. That way, you won’t have to take a out a loan when you need a new home and waste money on finance charges!

Other Major Financial Goals

Now, you will list out any other personal financial goals you have for yourself. Don’t be shy. List out everything! We can easily get caught up in a limited mindset of what we can accomplish financially, especially if our minds are clouded by the knowledge of having existing debt. This is why I am having you go over your financial goals FIRST so that you don’t limit the goals you make while thinking about your debts. Dream big, friend! Here are some ideas of some personal financial goals you can make for yourself:

• Do you want to remodel your home?
• Do you want to purchase a vacation home?
• Do you want to retire by a specific age?
• Do you want to give more? Do you want to give to a specific charity?
• Do you want to retire your parents?

We eventually go over other financial goals like a wedding and children, college tuition for your kids, savings and investments goals you must have, etc. during this budget challenge. For now, list out ALL the personal financial goals you have noted throughout this entire blog. Then, we will figure out how to fit them into your budget by the end of this challenge.

Dreaming big now, even when things are tight, sets you up for success in the future:

• One, you are in the mindset that you are working toward these goals and are, therefore, mindful about how your financial decisions today bring you closer to these goals.
• Two, you are aware of habits that have kept your finances stagnant, or even moving backward.
• Three, you are equipped to prevent debt from increasing.
• Four, you are equipped to increase your finances by cutting back on expenses and finding alternative income sources!

In order to truly know how to maximize your income and accomplish your financial goals, you must create a budget for your income now in order to use it in the most profitable way possible. So, if you haven’t downloaded your free budget template yet, you can do so here now and create a budget for this entire year!

Remember, after you create your budget, I show you how it all comes together in a comprehensive lifetime budget that takes minutes a day to maintain.

In the next post, we cover financial goals you must make with your spouse in your lifetime. Stay tuned!

Happy Budgeting!