How to Get a Handle on Your Financial Priorities and Goals

Let’s be honest. Most of us don’t love talking about money. It can feel stressful, complicated, and frankly, a little daunting. But ignoring your finances isn’t a solution. Taking control of your money is one of the most empowering things you can do for yourself and your future.

This guide will walk you through a simple, actionable process for getting a handle on your financial priorities and goals. It’s about shifting from reactive spending to proactive planning.

Step 1: Understand Your Current Situation

Before you can set goals, you need to know where you stand. This means taking a realistic look at your current financial situation.

Track Your Income: Know exactly how much money you’re bringing in each month after taxes and other deductions.
Track Your Expenses: This is arguably the hardest part, but crucial. You need to know where your money is going. Use a budgeting app (Mint, YNAB, EveryDollar are popular choices), a spreadsheet, or even a notebook to track every expense – even the small ones! Categorize them (housing, food, transportation, entertainment, etc.).
Calculate Your Net Worth: This is the difference between your assets (what you own - savings, investments, property) and your liabilities (what you owe - loans, credit card debt). Don’t worry about a perfect number, just get a general sense.

Step 2: Define Your Financial Goals

Now that you have a clear picture of your finances, it’s time to define what you’re working towards. Think big, but also be realistic.

Here are some common financial goals to consider:

Short-Term (1-3 years): Building an emergency fund (3-6 months’ worth of living expenses), paying off high-interest debt, saving for a down payment on a car, taking a vacation.
Mid-Term (3-10 years): Saving for a larger purchase like a house, investing for retirement, funding your children's education.
Long-Term (10+ years): Retirement savings, estate planning.

Tip: Write down your goals! Seriously, putting them in writing makes them more real and helps you stay motivated.

Step 3: Prioritize Your Goals

You likely have a laundry list of goals. Not all of them are equally important, or achievable in the short term.

Rank Your Goals: Rate each goal on a scale of 1 to 10 based on its importance to you.
Consider Your Time Horizon: Some goals need immediate attention (like high-interest debt), while others can wait.

Step 4: Create a Budget

A budget is your roadmap to achieving your financial goals. It’s a plan for how you’ll allocate your income.

Zero-Based Budgeting: Allocate every dollar you earn to a specific category.
50/30/20 Rule: 50% of your income on needs (housing, food, transportation), 30% on wants (entertainment, dining out), 20% on savings and debt repayment. (This is a guideline, adjust as needed).

Step 5: Review and Adjust Regularly

Your financial situation and goals will likely change over time. Regularly review your budget and progress. Don’t be afraid to adjust your plan as needed.

Resources to Help You Get Started:

Mint: https://www.mint.com/ (Budgeting and tracking)
YNAB (You Need a Budget): https://www.youneedabudget.com/ (Zero-based budgeting)
EveryDollar: https://everydollar.app/ (Dave Ramsey’s budgeting app)

Taking control of your finances doesn't have to be overwhelming. Start small, be patient with yourself, and celebrate your successes along the way.