Why Is Financial Goal Setting So Important?

Building your wealth requires consistent time and effort. It also requires planning ahead and setting financial goals that align with your current circumstance. 

Just as you would when you’re learning a new skill or starting a business, setting both short-term and long-term goals are crucial if you are wanting to build your wealth and secure financial freedom. 

Whether you’re looking to pay off all your credit card debt, start your own business or create your retirement plan, financial goals can help you achieve more with life.

If you know your financial goals, you then want to have a clear guide as to how you should start and what steps you should take to accomplish them. This is where a financial plan can come in handy – to help strategically map out your financial goals step-by-step.

Seeking guidance from a trusted financial adviser, like Poole Advisory, can help tailor financial strategies to help you achieve your goals.

This article will dive deeper into the 5 reasons why it’s crucial that you set financial goals:

Why Should You Set Financial Goals? 

Reason #1: Provide Clarity of What You’re Financially Working Towards

Most people are looking to achieve more with their finances. But without knowing what you want to achieve or the steps it takes, it can be hard to improve your financial security.

Before you can save for your goals, it’s crucial to first think about what you want out of life and how they translate into financial goals.


Why do you want your life to look like in 10 years’ time?

  • Do you want to be completely debt-free and stress-free?
  • Do you plan to take an overseas holiday with the family?
  • Or maybe you would like to be retired and sipping cocktails on a beach?

A goal not written down is just a dream. Going public and writing your goals down creates psychological motivation and excitement.

When you know what your perfect lifestyle looks like, a financial planner can help you create the financial strategies to help you live your best life.

That way, you’ll be able to make any necessary adjustments to your current financial strategies and be able to see clearly what you need to do to reach your goals.

Reason #2: Help Determine Your Budget and Cashflow Management Strategy: 

If you are wanting to own a holiday home, buy a new car or maybe you want to invest to build or create wealth to live a better life now and into the future; It’s important you are prepared for how much more money you’ll need and how much you’ll need to save in order to get you there. 

Financial goals can help you stay on track with your cash flow.

If you’re are consistently managing your cash flow you can gain a clear understanding of your financial situation. From there, you can devise the right financial strategies to help you achieve your financial goals.

If you’re unsure whether or not you are on the right track with managing your personal cash flow management you may want to consider seeking a financial adviser who specialises in cash flow management. 

In the meantime, you can learn more about why personal cashflow management is important and can be of benefit to you here: 

3 Reasons Why You Should Practice Personal Cash Flow Management.

It also may be beneficial to set a certain amount of money that you need to save for your emergency fund.

This can be part of your budget to help you feel more secure and prepared for financial emergencies.

Reason #3: Different Financial Goals May Require Different Strategies

When you set your financial short-term and long-term goals, they usually won’t be the same. You may be saving for a down payment on a house. You may be wanting to grow your retirement savings. You could simply have a certain amount of money you’re trying to reach in your savings account.

There are various financial strategies that you can utilise to help you achieve your particular goals. However, it’s important to choose the right strategies to ensure you are on the right path to achieving your particular financial goals.

For instance, if you’re wanting to save a certain amount of money for your ideal retirement, you may need to consider making extra contributions to your super, or possibly change how your super is being invested on your behalf. 

If you want the right personal financial strategies tailored to your financial goals, it may be beneficial to seek expert financial advice from a qualified financial adviser. 

At Poole Advisory, we take the time to evaluate your current financial situation and collaborate with you to define strategies that are personalised, meaningful, and achievable to allow you to live a life of prosperity. 

Reason #4: Goals Can Hold You Accountable 

Without knowing if you are on track to achieve your financial goals, you may feel like you’re not moving towards financial success.

By having specific goals mapped out that are realistic, achievable and time-specific, you can keep yourself accountable.

A financial planner can support you with financial accountability as well.

A financial advisor is there to help you make smart financial decisions that move you forward in life and in finances.

Some people spend money as soon as they get it or make the wrong financial moves. If you’re one of these people, building your wealth can be difficult. Without the tools to track your wealth, it can also make it difficult to determine what goals may be achievable for you. 

Cash flow analysis can help you plan for your financial future to be smart with your money and your investments.

A financial goal can also help you prioritise. For example, if you have a goal that you know is achievable with the implementation of certain financial strategies, you are more motivated to stay on track to achieving that goal.



Setting financial goals is an important part of financial planning.

It’s an excellent way for you to achieve your perfect lifestyle – now and in the future.

If you have big financial goals in mind and you’re not sure where to start, talk to our financial planner at Poole Advisory.

Poole Advisory is a reputable firm that offers financial planning services in Bowral and Sydney. 

Contact us today and set an appointment with one of our financial advisers who can help you determine your financial goals!


Compliance Disclaimer: 

This information contains general advice only, that is, advice which does not take into account your needs, objectives, or financial situation. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. You should obtain financial or credit advice that addresses your specific needs and situation before making investment or borrowing decisions. Taxation information is based on our interpretation of the relevant laws as at 1 July 2018. While every care has been taken in the preparation of this information, Prosperitas Partners Pty Ltd does not guarantee the accuracy or completeness of the information. The case studies are hypothetical, for illustration purposes only and are not based on actual returns

Poole Advisory Pty Ltd ABN 15 642 040 604 is a Corporate Authorised Representative (No. 001282603) of Prosperitas Partners Pty Ltd ABN 30 662 654 453 AFSL 544 917

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