The Beginner's Guide to Setting Financial Goals

Who Will Benefit Most from This Guide?

If you’ve ever wondered how to get your money working for you, this guide is for you. Whether you’re just starting your career, saving for your first home, or simply want a better grip on your spending, you’re in the right place. Setting financial goals isn’t about being wealthy—it’s about making progress, wherever you are financially.

What Are Financial Goals, Really?

In the simplest terms, a financial goal is just something you want to achieve with your money. It could be buying a car, building savings for emergencies, paying off debt, or even going on that dream holiday. There’s no goal too big or too small, and everyone’s journey will look a bit different.

Why Bother Setting Financial Goals?

• Clarity: Knowing what you want to achieve helps keep your spending in check.
• Motivation: Watching your progress inspires you to keep going—even on tight months.
• Direction: Life can be unpredictable, but goals help you stay focused.

As the saying goes, “If you aim at nothing, you’ll hit nothing.” Goals turn hopes into plans, and plans into reality.

How Does It All Work? (No Fancy Maths!)

1. Decide what matters most. Write a wish list of things you’d like to achieve. Start broad—owning a home, being debt-free, or feeling less stressed about money. 2. Sort by time frame. Is your goal something for this year (short-term), the next few years (medium-term), or long down the road (long-term)? 3. Get specific. Instead of “save money,” try “save £500 for holiday by next summer.” 4. Break it down. How much do you need to put away each month? Smaller steps feel more manageable!

Here’s a quick table to help:

Type of Goal	Example	Time Frame
Short-term	Holiday fund	Within 1 year
Medium-term	Car deposit	1-3 years
Long-term	Retirement savings	5+ years

Sophie’s Story: A Real-Life Example

Let’s talk about Sophie. She’s 29, lives in Manchester, and used to feel anxious about her finances. She decided she wanted to:
• Save £1,000 for emergencies
• Clear her credit card balance
• Start a deposit for a flat

Putting her goals on paper helped Sophie shift her mindset. She set up a separate savings account, made a plan to pay more than the minimum on her card, and spoke with a financial adviser for tips. Six months in, she’s already feeling more confident and has a safety net in place.

Jargon Buster: No Nonsense, Just Plain English

• Budget: A plan for your money—what’s coming in and going out.
• Interest Rate: The cost of borrowing or reward for saving, shown as a percentage.
• Emergency Fund: Money put aside for unexpected expenses (think boiler breakdowns).
• APR: Annual Percentage Rate—basically, the real cost of borrowing over a year.
• Direct Debit: Automatic payments from your account (like Netflix or gym memberships).

Common Questions About Setting Financial Goals

Do I need loads of money to set goals? No! You can start small. The habit matters more than the amount.

What if my goals change? That’s normal. Review your goals every few months and adjust as needed.

I’ve never saved before. Where do I start? Try setting up a standing order for a small amount into a savings account—out of sight, out of mind.

How many goals should I have? There’s no right number. Focus on a handful that matter most to you.

Ready to Take Your First Step?

You don’t have to map out your whole future today. Just pick one goal and jot down a first action—open a new savings account, list your debts, or write your dream on a sticky note. Future you will be grateful you started!

For more resources and guidance on managing your money, visit Kandoo and explore how our partners could help you reach your next milestone.