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5 tips to help you prioritize your financial goals

Organizing your finances and saving for what’s important doesn’t need to be complicated. Here’s how to get started.

Jul. 18, 2022 4-minute read

Whether you’re actively thinking about them or not, you have financial goals. They may include finally taking that family vacation, renovating your kitchen or putting more money toward your retirement. On top of everything else, you’re dealing with the rising cost of day-to-day expenses. With all these different factors competing for your attention, it can feel overwhelming to even begin thinking about prioritizing your long-term financial goals.

According to a CIBC poll, 75% of Canadians agree that financial wellness is a priority¹. This is another way of saying that many Canadians want a healthy relationship with their money. For more information on financial wellness, read this CIBC Smart Advice article.

Having a plan and prioritizing your goals can build your confidence and help you organize your finances. Here are 5 tips to help you get started:

1. Put pen to paper and declare your ambitions

Goal success is connected to writing down what you want to accomplish in your life. Writing your ambitions down also empowers you to be mindful of what you’re choosing to work toward. Organizing your goals based on how long they’ll take to achieve helps you see your short-, medium- and long-term goals more clearly. Your list might look something like this:

Short-term goals

Less than 3 years

Buy a car
Take a family vacation
Complete home renovations

Medium-term goals

3 to 10 years

Down payment for a home
Funds to start a business
Paying for a wedding

Long-term goals

More than 10 years

Pay for my child’s education
Be mortgage-free
Retire comfortably

2. Gauge the importance of your goals

As you assess your list, stop and ask yourself how each goal affects your financial wellbeing. If you’re having a hard time prioritizing, ask yourself which goals are most important to you or will have the most impact. For example, you might choose to save for a down payment on a home over a family vacation. Other factors, like timing and how much money you’ll need, also affect how you prioritize your goals. Your advisor can help you prioritize these goals based on your current financial situation, age and other life circumstances.

3. Budget for what matters most

In order to achieve a goal, you need to stick to a plan and stay focused on a clearly defined process. That’s why having a budget is so important. Be sure to set goals that are clear and realistic based on your timelines and financial situation. It's important to have a practical budget to keep you on track, accountable and feeling good about your plan. Prioritizing the items in your budget can give you peace of mind that your money is going towards what's important to you.

In the following example, a couple created their wedding budget to get an overview of their cash flow. They've prioritized their money to make sure it's being spent on what they want and need most:

Total budget: $30,000

Venue	$10,000
Photographer	$4,000
Catering	$4,000
Entertainment	$3,000
Wedding attire	$3,000
Flowers	$2,500
Lighting and décor	$1,500
Miscellaneous	$1,500
Wedding planner	$300
Transportation	$200

4. Be okay with evolving priorities

The person you were 5 or 10 years ago likely had different goals than the ones you have today. Your life circumstances will likely change over time, so it’s no surprise that your goals and priorities will change as well. Make a point of revisiting your list of goals often so they continue to reflect your evolving aspirations and needs. Remember, there’s nothing wrong with reassessing your goals and pivoting to achieve new ones.

5. Don’t lose sight of your dreams

Taking steps towards achieving your financial goals is no small feat! You may want to consider sharing your goals with loved ones or an advisor who can keep you on track. In fact, when it comes to achieving goals, roughly half of Canadians say that when you share your ambition with someone, it’s more likely to happen².

Reminders of what you’re working toward can be motivating and often necessary. Associating your money with your goals, like buying your first home, allows you to manage your money with purpose. One idea is adding a nickname, like “My first home”, to that specific savings account. For more information on how to use your CIBC account to keep track of your goals, visit Ways to Bank.

Ready to turn your dreams into reality?

While it can be hard to stay on top of everything happening in your busy life, it’s essential to make your goals a priority. Sharing your ambitions with an advisor can not only bring them to life, but can help you stick to your plan. An advisor will prioritize what’s important to you and craft a clear financial plan to help you achieve your goals so you can get closer to the future you want.

Sources:

¹ Canadians are prioritizing financial wellness, yet aren’t seeking professional advice in 2022: CIBC Poll Opens in a new window.

² Pandemic paused but hasn’t derailed Canadian’s ambitions: CIBC Poll (October 2021) Opens in a new window.

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5 tips to help you prioritize your financial goals

1. Put pen to paper and declare your ambitions

Short-term goals

Medium-term goals

Long-term goals

2. Gauge the importance of your goals

3. Budget for what matters most

Total budget: $30,000

4. Be okay with evolving priorities

5. Don’t lose sight of your dreams

Ready to turn your dreams into reality?

Need some financial advice?

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