A wish like “I want more money” is hard to act on. A goal like “I will save 600 kr for a bike by August” is not. The difference is a plan with a number and a date.
This article is the reading companion to the free Mondosol lesson Money Matters: Financial Goals, part of the Money course. Read it, watch the videos, or press play and listen first, then practise in the lesson.
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In this article
What is a financial goal?
A financial goal is something you want to do with money, with a clear amount and a time. It can be saving for something you want, paying off a debt, or building a safety net.
Sorting goals by how far away they are makes planning easier:
| Type | Time | Examples |
|---|---|---|
| Short-term | Up to 1 year | A bike, a trip with friends, a new phone |
| Medium-term | 1 to 5 years | A laptop for studies, a course, a deposit for a flat |
| Long-term | 5 years or more | A home, education, retirement |
The SMART method
SMART is a checklist for goals. It was popularised by George T. Doran in a 1981 management article, and teachers and banks still use it today because it works for personal goals too.
| Letter | Means | Example |
|---|---|---|
| Specific | Say exactly what you want | “Save for a second-hand laptop” |
| Measurable | Put a number on it | “900 kr” |
| Achievable | Possible with your income | “75 kr a month fits my budget” |
| Relevant | It matters to you | “I need it for school” |
| Time-bound | Set a date | “By next September” |
Put it together: “I will save 900 kr for a laptop by next September by putting 75 kr aside every month.”
Turn the goal into a monthly amount
Divide the total by the number of months. That is your monthly target. If you prefer weeks, divide the monthly amount by about four.
| Goal (invented examples) | Target | Time | Per month |
|---|---|---|---|
| Phone case and charger | 300 kr | 6 months | 50 kr |
| Bike | 600 kr | 10 months | 60 kr |
| Laptop | 900 kr | 12 months | 75 kr |
| Course or school trip | 1,200 kr | 12 months | 100 kr |
| Small first deposit | 2,400 kr | 24 months | 100 kr |
If the monthly amount feels too big, you have two honest choices: give it more time, or lower the target. Both are better than giving up.
Track it and celebrate milestones
Goals are easier to keep when you can see progress. Mark 25%, 50% and 75% on a simple chart or in your notes, and let yourself enjoy each step.
- Pay yourself first. Move the money to a separate savings pot as soon as you receive income, instead of saving “what is left”.
- Automate it. A standing order to your savings account removes the need for willpower.
- Look every month. Five minutes to update your progress keeps the goal alive.
When life gets in the way
Surprises happen: a broken phone, a missed paycheque. When they do, change the plan instead of dropping it. Move the date, lower the monthly amount for a while, or pause and restart.
This is also why an emergency fund comes first for many people. Read How to Start an Emergency Fund in 30 Days to see how a small safety net protects your other goals.
Watch: setting SMART financial goals
Two short videos on turning a wish into a goal you can reach. Currencies and products differ, so use them for the method.
Video: “What are SMART goals and why do they matter? | Financial Literacy | Khan Academy”, on YouTube.
Video: “How to Set Financial Goals | Step-by-Step Guide | Money Instructor”, on YouTube.
Take it further
Reading is a good start. These options help you go from knowing to doing.
All courses, live coaching sessions and members-only events, with a 30-day money-back guarantee. See the plans
A simple step-by-step checklist from Mondosol. Educational, not advice. Get the checklist
A live session on Google Meet to turn this topic into your own plan. Book a session
Frequently asked questions
How many financial goals should I have at once?
One or two main goals is plenty to start. Too many goals split your money into amounts too small to notice, and it is easier to lose motivation.
What is a good first goal?
A small emergency buffer, or one specific item you really want. A first win builds the habit.
Should I save or invest for my goal?
For goals within a few years, most people keep the money in savings, where it is not exposed to market ups and downs. Investing carries risk and suits longer time frames. This is education, not personal advice.
Can my goals change?
Yes, and they should. Review them every few months, because your life and income change.
Can kids and teenagers set financial goals?
Absolutely. A goal with a picture, a number and a date is a great way to learn patience and planning, whatever your age.
Keep learning
- Course: Money
- Lesson (Practise it): Money Matters: Financial Goals
- Read next: How to Start an Emergency Fund in 30 Days and Money and Emotions
- Related: Compound Interest Explained
Educational, not financial advice. All numbers are invented examples for learning, not predictions. This post contains no affiliate links.
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