Importance of Goals When Budgeting
On this episode of Financially Naked: Stories from The Financial Gym, Whitney and Catriona discuss the importance of goal-setting when on a financial health journey. They talk about why knowing your "why" is essential, how to align your spending with your values, and why regular check-ins on your financial goals can set you up for success. Whether you love setting goals or struggle with them, this episode will help you shift your mindset and get grounded with intentional goals.
Podcast Notes
Why Financial Goals Matter
Goals are the foundation of your financial health journey. Clear goals will help you stay grounded and motivated to stick to your budget. At The Financial Gym, Trainers encourage clients to think about short, medium, and long-term goals.
It’s common for people to not have clear financial goals. They may want things or experiences they’re hoping to have, but they haven’t defined them as financial goals.
You do not have to wait until you get a raise or a new job to set financial goals. If you start with your goals, you can work from there to understand how much you need to earn and save to accomplish them.
When you know what you are saving for, you can set clear action steps and intentions for how to achieve them. Actions can include earning more, spending less, and automating your savings.
Budgeting with Goals in Mind
Goals-based budgeting is a core philosophy at The Financial Gym. With goal-based budgeting, you can align your everyday actions with your financial goals. Decision making becomes easier as you’re grounded with purpose.
Review your spending from the last 12 months. This exercise will provide a clear picture of how you’ve been spending and if that spending aligns with your goals and values.
When building your budget, start with your fixed expenses and savings goals. After that, add in your variable spending. This order ensures your goals are taken care of and provides flexibility for everything else.
Don’t forget to look at your semi-annual and annual expenses, like car insurance, subscriptions, and annual fees. Build that into your regular savings so you’re prepared when it’s time to pay.
Plan for special events like weddings, holidays, or other travel. Without planning for these occasions, it’s easy to stray from your budget. When you plan ahead, you can avoid putting unexpected expenses on a credit card.
Taking Control & Building Confidence
Being open and talking about money is the first step to building your confidence. At The Gym, many clients are incredibly emotional during their first meeting, whether that is scared, anxious, or upset.
When Whitney went through the bankruptcy process and shared her experience online, many people started to open up with her about their struggles with debt.
You cannot be a passive participant in this process. You have to take control and actively work towards building your financial confidence. Setting clear goals is powerful step.
You do not have to go on this journey alone. Sharing your goals with friends can be a great way to hold yourself accountable and inspire others to do the same. A Certified Financial Trainer at The Financial Gym is a great option if you want a clear roadmap and a supportive accountability partner the entire way.
If you want to work with a Certified Financial Trainer to help navigate your finances, schedule a free warm-up call today! If you have any ideas or questions for the show, send an email to trainerpodcast@fingyms.com.
Resources
Meet The Trainer
Catriona Williams, Certified Financial Trainer
Whitney Catalano, Marketing Coordinator