Jasmine Birtles
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How to Set Financial Goals That Actually Motivate You
Ruby Layram
1st Sep 2025
Let’s be honest, most of us have tried setting financial goals before and given up halfway. “I’ll save £500 this month.” “I’ll invest £200 every payday.” “I’ll clear all my debt by summer.” They sound great in theory, but when life gets in the way. An unexpected bill, a holiday booking, a night ou- you quickly lose motivation.
The truth is, it’s not about willpower. It’s about setting the right kind of goals. Goals that are clear, realistic, and, most importantly, exciting enough to keep you on track.
If you’re just starting your investing journey, getting this right is the difference between fizzling out in a few weeks and building wealth that lasts a lifetime.
Here’s how to do it.
Also read: How I invest £500 every month to build wealth
1. Start With Your “Why”
Money on its own isn’t motivating. A number in your bank account won’t inspire you when you’re tempted by online shopping. But money as a tool? That’s powerful.
Ask yourself: Why do I want to build wealth? Is it freedom from debt? The ability to work fewer hours? Buying your first home? Retiring earlier than your parents?
Write this down. This “why” becomes the anchor for your financial goals, the thing that reminds you what you’re really working towards.
2. Be Specific (No More Vague Goals!)
“Save more” or “invest regularly” isn’t a goal, it’s a wish. A proper financial goal is specific:
- “Save £3,000 for an emergency fund in 12 months.”
- “Invest £100 per month into a stocks & shares ISA.”
- “Pay off my credit card balance of £2,500 by next summer.”
The clearer your goal, the easier it is to measure progress- and the more satisfying it feels when you hit milestones.
3. Break Big Goals Into Bite-Sized Pieces
If your long-term goal is to retire with £500,000, don’t expect that to light a fire under you today. It’s just too far away. Instead, break it down.
Start with: “Invest £100 a month.” Then increase gradually as your income grows. Celebrate each milestone, no matter how small.
Tiny, consistent steps are what build real wealth.
4. Make It Visible
Ever notice how gyms put progress charts on the wall? It’s because seeing progress keeps you motivated. Do the same with your money.
- Use a money-tracking app.
- Colour in a savings thermometer every time you add to your pot.
- Stick a photo of your dream holiday/home/car on the fridge as a reminder.
The more tangible your progress feels, the more likely you are to keep going.
5. Build in Rewards (Without Derailing Yourself)
Motivation doesn’t come from denying yourself forever. Reward yourself along the way. Paid off half your credit card? Treat yourself to a nice meal. Hit your savings target for three months in a row? Book a weekend break (paid for in cash).
Positive reinforcement makes your financial habits stick.
6. Review and Adjust
Life changes, and so will your goals. Check in on them every few months:
- Are they still realistic?
- Do they still excite you?
- Do you need to adjust amounts, timelines, or priorities?
Remember, goals are there to serve you, not the other way around.
Final Thoughts
Financial goals shouldn’t feel like punishment. Done right, they’re energising. They give you direction, keep you focused, and turn your money from a source of stress into a source of empowerment.
If you’re just starting your investing journey, don’t overcomplicate things. Pick one or two simple, motivating goals.
Write them down, track your progress, and let the momentum build. Before you know it, you’ll look back and realise you’ve achieved far more than you thought possible.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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