How To Set Limits on Your Financial Goals

The idea of financial security is a myth. It doesn't exist. But the pursuit of it can be worthwhile, and that's what this post will help you with: how to set limits on your financial goals so that they're not unattainable dreams but instead achievable steps along the way toward true wealth.


Achievable steps toward true wealth might sound a bit too scary for us to understand, but when it is broken down into smaller bits, you can actually see the progression and what we should do from one step at a time. Here are three things you should know about setting limits on your financial goals:

  1. You have to choose

  2. You need to prioritize

  3. There are consequences for every choice

And here are three questions you should ask yourself before making any decision related to money:

  1. What do I want?

  2. What would make me happy?

  3. How much time am I willing to spend getting there?

The answers to these questions will help you set the limits on your financial goals.

1) You Have To Choose

When it comes to financial goals, you can't have everything. You have to prioritize and choose what's most important to you. Maybe you want a new car, a new house, and a trip to Europe. That's great, but you can't have everything. You have to choose. Maybe you need a new car to get to work, so the trip to Europe is out. Or maybe your house is in such bad shape that you need to fix it before you can entertain any thoughts of buying a new one. The point is, you have to prioritize your goals and choose what's most important to you.

2) You Need To Prioritize

Just as you have to choose what's most important to you, you also need to prioritize your goals. The order in which you achieve them is important. You can't buy a new car before you've fixed your house. You can't go on vacation before you have the money to do so. You can't buy a new TV before you've fixed your bill for the car. Again, it all goes back to priorities. Going to the cinema, dinner at a restaurant or playing online poker occasionally should be your leisure activity only, meaning take it as a short escape to refresh your mind and not do it too often. So you shouldn't check new movies released every weekend or check online casino ratings every other night again. With movies, you can just choose the one you are only interested in, not go by what is currently popular. For online casinos, it is undoubtedly one of the more traditional and well-established forms of entertainment that many people like to do. So, be sure to do your research and not overspend your money on that too. Your priority should shift.

3) There Are Consequences For Every Choice

Don't think that just because you want something that you're going to get it. If there's one thing this world has shown us, it's that there are consequences for every choice we make. If you want a new car, you have to be willing to work for it. If you want a new house, you have to be willing to save for it. If you want a trip to Europe, you have to be willing to spend your money on it. The list goes on and on. The point is, you have to be aware of the consequences for every choice you make.

Now that you know these three things, it's time to ask yourself some questions about your financial goals.

Questions to Ask Yourself About Your Financial Goals

1) What Do You Want?

If you know what you want, it's easier to set limits on your financial goals. Maybe all you really want is a tank of gas for your car every week. That's fine; that's one goal. Maybe you want a new car, a new house, or that brand new smartphones. That's great, but you can't have everything. You need to prioritize.

2) What Would Make You Happy?

This question is important because it can help you set limits on your financial goals. If you know what would make you happy, you can set a limit on your financial goals that will help you get there. Maybe having fancy new clothes would make you happy, but you're not willing to work for it. If that's the case, stay away from all those fashion store commercials. They only make you unhappy because they make your goal seem impossible to attain.

3) How Much Time Am I Willing To Spend Getting There?

This question is important because it can help you set limits on your financial goals. If you're not willing to put in the time, you're not going to get very far. You have to be realistic about how long it will take you to achieve your goals. Maybe you want a new car and a new house by the time you retire, but that's probably not going to happen. You need to be realistic about how long it takes to achieve goals and set limits accordingly.

The answers to these three questions will help you set limits on your financial goals.

Setting limits on your financial goals doesn't have to be complicated. With a little self-reflection and some thought, you can figure out what's most important to you and set the appropriate expectations for achieving them according to how much time and effort you're willing to invest. The key is knowing yourself well enough so that you don't get overwhelmed by all of the possibilities in front of you. Setting limits may not always make us happy but it will help us achieve our long term goals more efficiently with less stress along the way.

Personal Finance   Lifestyle