When you take the time to actually think about the things that you want to accomplish and create a plan to get there, you’re far more likely to achieve them. That’s why it’s so important to create financial goals.

It’s not just enough to say that you want to be rich or successful. You have to create a plan and strategy to get there. When the goals are set, with discipline on your part, your financial future will be secured.

But what are some financial goals you can set to build your financial future? What are some financial tips that will benefit you now and in the future? Find answers to these and many more questions in this article.

• 9 Money Goals to Build your Future
• What are some Good long term Financial Goals?
• How to Reach Several Goals Simultaneously

9 Money Goals to Build your Future

If you’ve never thought much about some goals for the future, here are 9 good financial goals that everyone should make a priority in 2020.

1. Set aside an Emergency Fund

We normally think of having an emergency fund as being a short-term financial goal. And from a mechanical standpoint, that’s true. However, an emergency fund has important long-term benefits, which is why it’s one of the good financial goals that you should plan to achieve.

Read Also: How can I be Prepared to Weather a Financial Storm?

Here are just some of the benefits that a well-stocked emergency fund can provide you with throughout your life:

• It can take away a lot of the money worries that you have since you know that you will always have a reserve should you get into a tight spot
• As is expected of an emergency fund, it will be there to cushion the blow in the event of a sudden emergency, such as a job loss or a large medical expense
• It’s an important money management tool – if you can save money for an emergency fund, then you can save money for any financial goal that you have
• It provides you with an intermediate funding source – a kind of halfway point between your paycheck and your investment accounts – that you can use so that you don’t have to disturb your long-term investments
• Just having an emergency fund will make the wide swings in the stock market more emotionally tolerable, knowing that your survival isn’t at stake when the market falls

When you consider all that comes from having a strong emergency fund, it should move it up the priority ladder a few rungs.

2. Stay out of Debt

The great thing about this goal is that anyone can do it, regardless of income or wealth level. And if you want to get the most out of your finances, it’s virtually a requirement that you get out of debt.

For the moment, let’s ignore the good-debt-versus-bad-debt debate. At some point in your life, all debt is bad debt and needs to be paid off. That includes the mortgage on your home.

Although the purpose of that debt may be noble at the beginning, it’s no less a drag on your income than any other debt as time goes on.

There are more reasons to get out of debt than we can list here, but here are just a few of them:

• Getting out of debt means that you’ll have full control over your income – and that’s an incredible feeling
• It will leave you with more money for savings and investing – and even more for spending
• It will remove the asterisk from your finances
• It will make it easier to quit a job you don’t like
• It will free your mind of the worry and stress that come with debt

3. Start Preparing for Retirement Early

Even if you absolutely love what it is you do for a living, planning for early retirement is one of those top-rated good financial goals.

A recent survey from Provision Living suggests that 43% of millennials have $5,000 or less stowed away for retirement. The survey also revealed that most millennials are concerned about their retirement and doubt they will have enough to live on.

Here’s why planning for retirement is crucial:

• Reaching your retirement goals may take longer than you think; if you plan to retire at 50 you’ll have plenty of time to make it by 65 in the event that you hit a few snags
• Poor health could make early retirement a necessity – if you’ve planned and prepared to retire early, then you will be ready
• Family circumstances often require more of your time, and early retirement will help you to have it
• Though you may not want to fully retire early, you may decide that you would like to downshift and not work so hard
• It’s better to be able to retire early and not need to than to need to retire early and not be able to

There’s one other advantage to planning to retire early, and it’s a big one. By working toward early retirement, you will be front-loading your retirement investment portfolio.

That will give you a larger portfolio early, which will mean that you won’t have to work so hard saving for retirement later in life when doing so may be more complicated.

4. Create Multiple Income Streams

Even if you love your job, creating multiple income streams is a form of income insurance. For that reason alone, it needs to be on your list of good financial goals.

But here are even more reasons:

• One of those income streams could be the part-time cash flow that enables you to semi-retire at an early age
• If you want to start your own business – but don’t want to quit your job – starting a side business could be the way to do it
• The extra cash flow from any additional income stream could be used to help fund your retirement savings
• It could also be used to help you pay off your debts
• Several income streams could provide you with an income portfolio, that means that you’re not dependent on a single source of income – ever!

Give this goal some serious thought, even if you’ve never considered it before. It’s a goal that could open the door to a lot of other goals.

5. Have Enough Insurance to Cover Contingencies

Insurance is something of a tough call. A lot of people don’t have nearly enough coverage, while many others are paying too much for the coverage that they have. Striking a balance between the two is another of those good financial goals.

Here are some strategies in striking that balance:

• Where life insurance is concerned, stick with term life insurance – it’s cheaper so you can buy as much as you need. Just make sure that you’re not buying so much life insurance that you’ll be worth more dead than you are alive; it’s just an expense you don’t need to carry
• Unless mandated by state law, look into carrying the lowest level of auto insurance possible, particularly if you have a long history as a safe driver
• Take the highest deductible you can on your health insurance, and make up the difference with an emergency fund that is large enough to cover that deductible – if you seldom use your health coverage, you’ll be way ahead from the lower premiums

Part of your goal should be to work with a knowledgeable insurance agent on a regular basis to make sure that you have just enough – but never too much – insurance coverage.

6. End any Expensive Habits you have

This may not be a financial goal in and of itself, but it is an obstacle that will stand in the way of all good financial goals, no matter what they are.

An addiction to stuff can be like a financial parasite. A disproportionate amount of your income and financial reserves will go to pay for your need for stuff.

This will present several problems:

• Stuff needs to be stored, and as your pile of stuff grows, you will need an ever larger space to store it. That will likely see you looking to buy a bigger house every few years, with all of the expenses that come with it
• Stuff is a capital trap – it ties up your money, but generally provides no financial benefit
• Any money that goes into stuff, is money that is not going into productive investments
• While stuff can make you more comfortable, only income producing or growth-oriented investments can improve your station in life
• During times of financial turmoil, you may become obsessed with protecting and maintaining your stuff, which is not at all what you need to focus on
• Stuff has a way of eating up time so that you have less of it to spend on more productive activities

If you even suspect that you may have an addiction to stuff, then make it a financial goal to end that addiction once and for all. Your life will go better if you do.

7. Do What you Love

Ultimately, the purpose of improving your finances should be to provide you with independence in your life. That means that it should afford you the ability to do what you want when you want.

A recent Gallup Poll suggests that engagement at work, defined as enthusiastic involvement and commitment at work, is at an all-time national high at 34%.

While that number may be higher than in the past, it still only constitutes 1/3 of American workers. That means quite a percentage of the population is indifferent, or in some cases, downright miserable, when it comes to their job.

Getting out of debt, preparing for early retirement, developing multiple income streams, and ending your addiction to stuff, should clear the way for you to be able to do the kind of work that you really love. That should be true even if the work doesn’t pay nearly as much as you’re being paid now.

But that will be possible only if you have no debts to pay, if you can live on less than you earn, and if you have a large investment portfolio to back you up.

Why is doing work that you love a worthy financial goal? Very few people will actually be retiring to the beach for a life of blissful nothing, no matter what you see on TV. If nothing else, it’s likely that you will work just as a matter of personal satisfaction – or an attempt to avoid boredom.

Since you will be working all of your life – one way or another – the work that you do shouldn’t just be about earning money. It should be something that makes you feel good about your life and good about the person you are.

8. Get Comfortable Sharing Your Good Fortune

If you can’t get comfortable sharing your good fortune with people who are less fortunate – perhaps out of fear that you will end up broke as a result – then money has complete control over your life. It doesn’t matter how much money you amass in your life, it should never control you.

There are numerous reasons why giving to others will be good for you:

• Letting go of money affirms your power over it – because you know that it will come back
• Giving to those in need makes you part of the solution in the world and not the problem
• Hoarding money is all about security – letting go of it is celebrating its value
• Giving to others just feels good – particularly the knowledge that you have the ability to do it
• Call it Karma, a higher power, what-goes-around-comes-around, or whatever you want, when you give you get – maybe not always in the form of money, but often in the form of friendship, personal satisfaction, or even help from others when you’re in need

Is giving one of those good financial goals? If you look at many of the most famous wealthy people in the world, you will see a distinct pattern of giving to others along the way.

10. Plan to Leave Your Financial House in Order Upon Your Death

However you live your life, it should be a goal to make sure that your loved ones are left at least a little bit better off as a result of your life.

That means not only making adequate provisions for those who are dependent upon your financial resources but also making sure that you don’t leave them with a financial mess to clean up.

Here are some steps you can take to leave your financial house in order upon your death:

• As discussed in #5, make sure that you have adequate insurance, particularly life insurance
• Make sure all of your debts are paid, and if there are any large or unusual ones, by a term life insurance policy to pay off that debt upon your death
• Consider the impact of estate taxes, if your estate is large enough to be subject to them (insurance can cover that too)
• Discuss the financial implications of your death with your loved ones, to make sure that everyone understands what you want to do, and also so that you will consider any concerns or insecurities that they may have
• Make sure that you have set an example of good financial management for your loved ones – what they learn from you will benefit them for the rest of their lives, and probably more than any amount of money you could leave them

Reaching a point of financial independence in life has nothing to do with luck or magic. It’s simply a matter of setting good financial goals and having a concrete plan as to how you will achieve them.

Once that plan is established, and working toward those goals becomes part of the habits that make your life what it is, achieving financial independence can almost seem as if it’s happening on automatic pilot.

What are some Good long term Financial Goals?

There’s no one-size-fits-all financial advice because everyone’s financial priorities are different. And even when two people share similar financial goals, they can take several routes to reach the same destination.

Everyone may be unique, but most of us share a few common goals. Some of these include universal goals that we all must – or at least should – achieve, such as having an emergency fund and enough money to retire.

Here are eight of the most common financial priorities to spur your thoughts before you go through the exercise of choosing and executing your personal priorities.

1. Paying Off Debt

Debt comes in many forms, from student loan debt to credit card debt to mortgage debt. And not all debt is created equal.

High-interest debt, such as credit card debt, should take priority over low-interest debt such as a mortgage against your home. That helps make decisions such as whether topay off student loans before paying off your mortgage easier.

Paying off high-interest (10% or higher) debt should typically take priority over every other goal on this list. The reason is simple: You have a choice between a guaranteed high return on your money by paying off the debt, compared with a possible return – or even losses – when you invest money elsewhere.

If you suffer under the weight of high-interest debt, learn how thedebt snowball and debt avalanche methods work. They offer time-tested techniques to become debt-free fast. And remember that you may have additional options for tackling your debt.

For example, some borrowers are eligible for student loan forgiveness programs. Another option is to use a personal loan from Credible to consolidate your debt under one low interest rate.

Whether you consider paying off high-interest debt a short- or long-term goal, prioritize it in your personal finances.

2. Saving for an Emergency Fund

Some people need a larger emergency fund than others. If your income and expenses are steady month in and month out, and your job is secure, then you don’t need as much of an emergency fund as someone with fluctuating income or expenses.

But those withirregular incomes have their own challenges in saving for an emergency fund.

Others have enough fallback options that they need very little in their emergency fund. For example, a person with an unused HELOC through Figure.com or low-APR credit card can always draw on these lines of credit in a pinch.

Likewise, a person with plenty of low-risk investments can lean on them with less fear of a crash gutting their value.

As a general rule, though, aim for one to three months’ expenses in your emergency fund if you have stable income and expenses, and three to six months’ worth if you tend toward irregularity.

3. Buying a House

The median American homeowner has a net worth of $231,400. By contrast, the median renter only has a net worth of $5,000, per the 2016 Survey of Consumer Finances by the Federal Reserve.

In other words, the typical homeowner’s net worth is over 46 times higher than their renting counterparts’. That’s a compelling argument to become a homeowner.

But buying a home costs a lot of money – usually tens of thousands of dollars in down payments, closing costs, and cash reserves (which offers some insight as to why homeowners typically have a higher net worth than renters).

A higher credit score helps reduce the down payment and lender fees you need to budget for, but you still need thousands of dollars to buy your first home.

Saving up to buy a home doesn’t have to be a brutal slog, though. Would-be homeowners can take advantage of the first-time homebuyer tax credit, along with a slew of other strategies (more on those shortly).

Finally, bear in mind that not all homeowners are laughing all the way to the bank. Despite their higher net worth, CNBC reports that nearly two-thirds of millennial homeowners regret buying a home.

4. Saving for Retirement

The only way to notneed retirement savings is to die young – hardly an enviable strategy. So while the other financial priorities on this list depend on your personal needs and desires, retirement savings are something everyone needs.

Fortunately, you have plenty of options at your disposal to save and invest for retirement. The easiest are IRAs and Roth IRAs through a company like M1 Finance because anyone can open one regardless of their employer.

But many employees also have access to 401(k)s or 403(b)s or SIMPLE IRAs through their jobs, which expand their annual contribution limits.

Even after hitting your annual ceiling, you can still invest through your regular brokerage account. There are also a few ways to cheat (more on those shortly). You could also start investing small through Acorns. This app rounds up each purchase you make with your debit and credit card and invests the difference.

If you’re new to investing, start with these ideas for how to start investing with under $1,000. Don’t put it off. Your greatest ally in the quest for retirement is compounding, which takes decades to work its most powerful magic.

Pro tip: If you have a 401(k) through your employer, sign up for a free analysis from Blooom. They will make sure your account is diversified, has the proper asset allocation, and that you aren’t paying too much in fees.

5. Saving for Your Kids’ College Education

Not everyone has kids, and even among those who do, not every parent plans to pay for their adult children’s education. But many do, and it proves a daunting challenge.

Over the last 30 years, college tuition has more than tripled, even after adjusting for inflation, so parents increasingly look to creative ways to save for college.

If you want to help your kids with tuition, consider using a 529 plan so your savings can grow tax-free.

6. Starting a Business

Ready to fire your boss and storm out of the office in a blaze of glory? Launching your own business isn’t as easy as TV shows make it look. Even when youturn your hobby into a money-making business, it still takes money.

Granted, saving up startup capital isn’t your only option. You can take several approaches to raise money to start your own business, although they all come with some element of risk and cost. You can also keep your costs low by launching a virtual business.

Money isn’t the only obstacle to starting a business, though. Before getting too far along in your daydream of being your own boss, do your homework on what else it takes to start a business.

For those willing to take that leap of faith, few experiences in life are as rewarding and challenging as starting a business. It forces you to push your boundaries – not always a comfortable experience, but one that inevitably leads to growth.

7. Financial Independence & Retiring Early (FIRE)

A small but growing portion of the population have set their sights on financial independence and early retirement (FIRE) as their primary goal.

Financial independence means being able to cover your living expenses with your income from investments. Put another way, it means making your day job optional.

Most people don’t reach financial independence until they retire, but no one says you have to work for four or five decades to achieve financial independence.

If you keep your living expenses modest and invest the majority of your income, you can generate enough passive income to live on within five or 10 years.

While it’s certainly a less conventional goal, the idea of a job-optional life is hard to dismiss.

8. Become a Millionaire & Accredited Investor

A million dollars doesn’t mean the kind of wealth it once did. A net worth of $1 million only generates $40,000 per year, based on the 4% rule of retirement planning.

That’s a decidedly middle-class lifestyle you might be OK with, but people with an investable net worth over $1 million qualify as accredited investors, giving them access to a set of investment options not available to the rest of us. By that metric at least, they qualify as “rich.”

Regardless of what it means to legally to be a millionaire, most people simply love the sound of it. Being a millionaire remains synonymous with having “made it” in our society, even if it doesn’t carry the same purchasing power it once did.

It’s a fun goal, if an arbitrary one. And it’s one that most young people find attainable; 53% of millennials believe they’ll be millionaires one day, according to a study by TD Ameritrade.

How to Reach Several Goals Simultaneously

Sometimes, you really can kill two proverbial birds with one stone. Here are a few “cheats” to help you work toward several goals at once and take the edge off of choosing between your high priorities.

1. Take Advantage of Roth IRAs’ Flexibility

Roth IRAs are the most flexible tax-sheltered accounts available to you. Take advantage of them.

You can pull out your contributions at any time, for any reason, with no tax penalty. So while they’re intended for retirement savings, you canuse Roth IRA funds for your kids’ college tuition, for a down payment on a house, as an emergency fund, or because you want to turn your van into a dog.

First-time homebuyers can also withdraw up to $10,000 of earnings penalty-free and tax-free.

Even traditional IRAs, SEP IRAs, and SIMPLE IRAs allow you to withdraw up to $10,000 of contributions penalty-free, although you’ll need to pay the back taxes on the withdrawal since you dodged them when you first contributed the money.

2. Use HSA Hacks

While health savings accounts (HSAs) can only be used for medical costs, you’d be surprised by how much flexibility that leaves.

The intended use for HSAs already serves multiple purposes:

1. To save money for medical emergencies
2. To save money on health insurance premiums
3. To save money on taxes

HSAs offer the best tax savings of any account available in the United States. Funds are shielded from taxes in three ways: contributions are tax-deductible, the money grows tax-free, and withdrawals are tax-free when used for health-related expenses.

But you can also get creative with HSAs to make them even more flexible. Think of your HSA as a retirement account first and foremost, an emergency fund second, and a medical reserve last.

In retirement, you will need money for medical expenses. The average couple spends $285,000 on health care between the age of 65 and the time they die, according to a 2019 report by Fidelity.

So aim to use your HSA funds to cover these retirement expenses, capitalizing on the better tax benefits you get from an HSA, rather than an IRA or 401(k).

In the meantime, an HSA can serve as an emergency fund. Yes, it covers your medical emergencies, but you can also add flexibility for non-medical expenses.

As you incur medical expenses throughout the year, pay for them with non-HSA funds, such as a rewards credit card, if you can afford it; just be sure to keep the medical bills and receipts.

Then, if a non-medical emergency hits and you need funds to cover it, you can withdraw money from your HSA to reimburse the previously paid medical bills.

Pro tip: If you don’t currently have an HSA account, look into Lively. They offer 100% free accounts for individuals.

3. House Hack

House hacking may be the single best move you can make to improve your finances.

The idea is simple: You get someone else to pay for your housing. Because housing is the largest expense for most people, it has the greatest potential to boost your savings rate.

In traditional house hacking, you buy a small multifamily property, move into one unit, and rent out the other. The rent from the neighboring unit pays for your mortgage.

Read Also: Do you Really Need a Financial Advisor?

Not only do you get to live there for free, but you score your first rental property. When you move out, you can keep the property as a rental to generate ongoing passive income – income that you can put toward paying down debt, your kids’ college tuition, retiring early, or any other financial priority.

4. Take Advantage of Matching Contributions

This piece of advice is an oldie but goodie: Always take advantage of matching contributions from your employer. It’s effectively free money.

You save more for retirement, you save money on your tax bill, and your employer pays you more. Win, win, win. All of it helps you build wealth tax-free and get closer to becoming a millionaire.

Final Thoughts

Life comes with tradeoffs. You can’t do everything all at once. But you can achieve your highest financial priorities if you keep your focus on them. And you can even bend the rules by adding flexibility and making progress toward several goals simultaneously.

Follow the steps above, take advantage of the cheats, and most importantly, maximize your savings rate. Every financial priority has one thing in common: The more money you put toward it, the faster you reach it.