First off, it’s important to think about the life goals you want to achieve. For example, this could be working towards buying property, paying off larger debts, or reaching a specific size of retirement pot. If you have more than one ambition in mind, great, but try not to overpromise yourself. Start small, think realistically and work from there.

Everyone’s financial situation is unique, so it’s worth looking at where you currently stand before taking steps towards your goals. Consider any current earnings, unpaid debts, or other commitments like mortgages and regular investments. Once you have a clear picture of your finances, work out how much you could realistically afford to put aside towards the future you.

Before you put together a plan, take the time to work out how far you are financially from meeting your goals. Knowing your financial position in relation to the goals you set can give you an idea of the gap between the two. This way, you might have a clearer idea of what action you need to take, and what finances might go towards what goal.

If you decide to work towards more than one goal, some will likely be more pressing than others. Decide which are more urgent – for example, you may want to focus on any short-term goals initially to tick them off your list, then work towards longer-term ambitions.

These long-term goals are more likely to include safety net goals or plans for future financial stability. It might be a good idea to incorporate these into your wider plan – if you’ve not already and have the capacity to do so.

For example, these could include covering your children’s education costs, building an emergency fund, and planning your inheritance.

If you would like help to talk this through, please contact our financial planning and advice services

Choosing what you want to work towards is one thing but deciding how you’ll do it is another important consideration. Depending on your personal situation and preferences, there are many different options to consider. For example:

• Cash ISAs – a tax-efficient, instant access savings account that earns interest
• Stocks and shares ISAs – an investment account that invests your money in stocks, shares and bonds
• Stocks and shares – investing your money into different companies and organisations
• Savings accounts – regularly putting money away into accounts that earn interest based on market performance
• Property – buying or selling real estate to generate profit, whether that’s renting or renovating.

Find out more about investing with NatWest

Creating a new budget that incorporates your financial goals is important to staying on track and on top of your money. Try to treat your goals as fixed expenses, meaning that saving or investing a certain amount each month becomes a non-negotiable. 

Depending on the savings or investment method you’ve chosen, they may have certain tax considerations and limits. For example, most ISAs have an annual contribution limit, and property investments are often subject to Capital Gains Tax.

We're here to help, but please be aware that we can't offer any tax advice. We recommend you contact an independent tax adviser to discuss your personal tax situation.

Financial goals should be flexible, which means you should regularly revisit them to ensure they’re still in line with what you want to achieve. This might include tracking progress, whether monthly, quarterly or annually, adapting to any changes in your personal circumstances and looking for ways to help your money grow.

You can also seek financial advice, like that offered by NatWest Premier, to help keep your goals in view.

Learn more about our financial planning and advice services

While some of your financial goals may be short-term, they should be created with long-term ambitions in mind. For example, even if one of your short-term goals is to pay off a certain loan, keep in mind the wider benefits.

While it’s good to stay focused on the positives, being aware of common setbacks can also help ensure your long-term plan goes smoothly. For example, you’ll want to ensure you’re:

• Not being too vague. Keep your goals specific and purposeful. The more relevant they are to you, the more likely you are to stay committed to them.
• Being realistic about timeframes. Set a deadline for when you want to meet a certain goal and work backwards, considering how you’re going to get there and whether it’s possible.
• Not overcommitting financially. All your financial goals should be created with realistic expectations, which means considering your income and any other financial commitments.
• Keeping to the plan. Unless your goals are no longer financially viable or needed, practising regular saving and investing can help you build healthy habits in the long run.
• Not comparing yourself to others. Everyone’s situation is different. Your financial goals should reflect what you want to achieve in the future, rather than being influenced by others’ expectations.
• Taking advantage of financial advice. If you feel stuck or don’t know where to get started, there’s plenty of support out there. At NatWest Premier, we offer tailored financial planning and investment advice, so you can rely on our experts to keep you on track.

The 50/30/20 when setting financial goals rule is a budgeting method that suggests how to allocate your money. For example, 50% for needs (e.g. bills and groceries), 30% for wants (e.g. disposable income), and 20% for savings and debt management. This can help you meet your goals over time whilst managing your regular outgoings.

While your financial ambitions are based on money, they might revolve around different aspects of your life – each one offering its own kind of wealth:

1. Financial wealth: money, assets and investments that give you freedom, flexibility and options around your lifestyle
2. Social wealth: the relationships, connections and community around you that provides support and emotional well-being.
3. Physical wealth: your health and fitness, without which many other forms of wealth stop being important
4. Time wealth: ownership of your time and schedule, meaning you get to spend it how you want
5. Mental wealth: happiness and contentment for a fulfilling, stress-free life

Financial goals can relate to things like your career, family or lifestyle. They’re sometimes categorised in the following timeframes.

Short-term financial goals

• Setting a budget
• Paying off loans and debts
• Creating or adding to your emergency fund

Mid-term financial goals

• Buying a new car
• Going on the holiday of a lifetime
• Home improvements
• Paying for a wedding

Long-term financial goals

• Retiring earlier with the lifestyle you want
• Paying off a mortgage
• Funding children through university
• Setting up a business
• Planning your estate

Sometimes things don’t work out, but not meeting your financial goals could just be a sign that you need to review and reset them. It might be that you were a little too vague or overambitious; or that life has changed, and with it so have your priorities and expenditures.

With this in mind, consider your personal situation and any current financial obligations and start the goal setting process again.

If you would like help to talk this through, please contact our financial planning and advice services

There are many reasons you might want to set some personal financial goals. Not only can they motivate you to achieve your ambitions, but you’ll also feel more in control of your financial future.

• Greater financial freedom and flexibility. You create your financial goals to suit you. It also means you’re on top of your income and outgoings, so you can make more confident decisions on where to spend your money.
• Better money mindfulness. With a better overview of your finances, you’ll be able to see a clear financial roadmap. This helps ensure every purchase and decision is made with your goals front and centre.
• Setting aside a rainy-day fund. Building an emergency fund for unforeseen expenses into your financial goals can help you in the long run. For example, if you lose your job or encounter any unexpected illness.
• Reduces financial stress. With greater control over your finances, you’re less likely to run into any nasty surprises. Knowing exactly where you’re headed with your money goals can bring clarity and peace of mind.
• Encourages healthy savings habits. Once you get into the habit of following your financial goals, certain positive habits – like being more focussed with your spending – are likely to help you stick in the long run.
• Helps you make the most of important milestones. Whether you want to improve your quality of life in retirement or are saving up for your wedding, setting financial goals can help make your dreams a reality.

If you’re saving with a short-term financial goal in mind, you may want to consider either a cash ISA or a high-interest easy-access savings account. Of course, what you choose will depend on your individual circumstances and whether you’re using the money as an emergency fund.

Explore our Premier savings account options