We all have plans in life, and how we want to spend our money. Maybe you’d love to buy a house, travel the world, or just get rid of that student loan debt for good. Without financial goals, though, those dreams will probably stay just that—dreams. Having actual goals gives you a plan to work off of, making it easier to turn your financial wishes into reality. The good news? You don’t need to be a financial genius to do it. You just need a plan that will work.

Step 1: Define Your ‘Why’ Before Goal Setting

Before you start crunching numbers, step back and ask yourself: Why do I need to achieve this goal? Your motivation matters. If you’re only saving because someone told you that you must, you’ll have a harder time staying committed. But if your goal is tied to something meaningful—like financial independence, the capacity to provide for your loved ones, or the freedom to travel—it becomes easier to stick with it.

Take a few minutes to think about what truly gets you going. Put it in writing. This will be the core that will drive you forward when the going gets rough.

Step 2: Turn Big Goals into Little Ones

It’s fine to say “I need to be financially stable,” but what does that mean? Having a goal that is too vague won’t do much for you. Break it down instead into tiny, achievable steps.

For example, if you must save $5,000 for a big vacation, that could sound daunting. But when broken down to $416 a month or approximately $14 each day, you will discover that all of a sudden it will be very reasonable. Smaller targets make big goals appear less frightening and provide ongoing motivation throughout the process.

Step 3: Establish Priorities Without Overcommitting Yourself

Ever tried to juggle too many things at once? Same idea with financial goals. If you try to save for retirement, get out of debt, build an emergency fund, and invest all at the same time, you might get frustrated and give up entirely.

The key? Prioritize. Start with the most urgent goal—maybe that’s paying down high-interest debt or creating a buffer with an emergency fund. Once you have momentum, you can gradually add more goals without feeling stretched too thin.

Step 4: Monitor Progress with Financial Tracking

How do you know you are moving towards your goals, however? That is where financial tracking comes in. By keeping an eye on your earnings, your spending, and your savings, you remain on course and can see areas where you can improve.

You don’t need anything sophisticated—a budgeting application, a spreadsheet, or a notebook will do. The goal is to make tracking a habit so that you can see real progress and make adjustments when you need to.

Step 5: Automate and Make Adjustments When Needed

One of the easiest ways to be consistent with your financial goals is to set them on autopilot. Automate moving money into your savings account or paying extra towards your debt. That way, you won’t need to rely on willpower—it’ll just happen in the background.

However, remember, life happens. Unexpected bills come up, incomes change, and priorities shift. That’s okay! The key is to check in on your progress from time to time and adjust as needed. Flexibility is just as important as discipline.

Step 6: Reward Yourself and Be Flexible to Stay Motivated

Debt repayment and saving money aren’t always enjoyable. That’s why you have to keep yourself motivated. Give yourself a reward for small wins along the journey. Did you hit your first $1,000 savings milestone? Reward yourself (within reason, naturally). Paid off a credit card? Give yourself a minute to enjoy that victory.

Also, don’t hesitate to alter your objectives. Maybe you first wanted to save for a vehicle but now would rather invest. That’s fine. Financial objectives are there to assist you, not the other way around.

Make Goal-Setting a Habit, Not a One-Time Thing

Financial success is not a one-time goal-setting exercise but a continuous process of shaping and reshaping as your life changes. The sooner you can make goal-setting a habit, the easier it is to make smart money decisions based on what’s most important to you.