3 tips for creating effective financial targets for the year ahead

Having clear financial goals can make a significant difference to your ability to build wealth and live the life you want. By setting specific targets, you become more mindful about how you spend your money. Also, having something to aim for could give you more motivation to save and invest each month.

Indeed, a 2021 study from the University of Stirling showed households with four or more savings goals held more than twice as many stocks and shares as those without any goals. As a result, these households may have been more likely to achieve long-term growth and afford a better quality of life.

So, having financial aims could mean it’s easier to save for the future, but it’s important to consider the quality of your goals. You need to be realistic about what you can achieve, while also being ambitious. Equally, you must be able to change your financial plan to reflect the current climate.

Here are three tips to help you set effective, adaptable goals for the year ahead.

1. Reflect on the past year

Before looking forward to 2026, you might benefit from reflecting on the past year. Consider what goals you had for 2025 and whether you achieved them or not.

This might include short-term aims such as saving for a holiday or a new car, as well as progress towards long-term goals such as saving for retirement.

You might find that your financial plan is on track, and you met every target you set for yourself. This is good news, but you may consider whether you could set yourself more ambitious goals next year.

If there are certain goals you failed to meet, consider why this might be. For instance, if you fell short of your savings target, is it because you were trying to save more than you could realistically afford, or did you overspend in other areas?

It’s also useful to contemplate whether your circumstances have changed. For example, a new child or grandchild might shift your priorities. Similarly, changes to the wider economic climate could affect your plans.

Reflecting on the past year could benefit you in several ways. First, it lets you see what worked and what didn’t, so you can adjust your goals for the year ahead. You can also focus on the successes, helping you stay motivated as you think about the next stage of your financial plan.

2. Consider your overall values

To set meaningful goals with real purpose, you need to consider your overall values. It’s easy enough to say you want to save and invest more, but if you aren’t clear about the reasons why, you may lack motivation.

That’s why your overall values and priorities in life should direct your financial aims.

For example, if you value spending time with family, you might want to move into a larger house with room for everybody to stay with you.

On the other hand, if you want to travel and see as much of the world as possible, you may plan to downsize your home in retirement.

Everybody is different, and we each have our own priorities. However, you might consider:

Your travel plans
How important socialising is for you
If you want to financially support family members
Whether you want to keep working or retire as early as possible
How you will find meaning and purpose once you’ve finished working.

Once you view the big picture, you can start determining what is important to you in 2026 and beyond. This will inform the more specific financial goals you create.

3. Choose measurable goals and track your progress

Now that you are ready to start creating detailed goals, it’s important that you pick measurable, specific targets.

For instance, you might decide that supporting family members financially is important to you. But who are you planning to support, and how much will it cost? You might have a child approaching university age – calculate precisely how much you need to save to help them with education costs.

When planning for retirement, think carefully about the kind of lifestyle you want to lead and what this is likely to cost. You can then arrive at a retirement savings target that is tailored to you.

If you have a clear figure in mind, you can determine exactly what you need to save each month. Crucially, this allows you to track your progress towards your goals, so you can see that your financial plan is working.

We can support you with this by discussing your plans for life and coming up with concrete targets. During our review meetings, we’ll track your progress and show you in clear terms how you are working towards your goals.

Get in touch

Our experienced team is here to help you set and achieve your financial goals.

Please contact us at hello@ardentuk.com or call or WhatsApp us on 01904 655 330. As an award-winning financial advice company with advisers included in the 2025 VouchedFor Top Rated guide, we can assure you that we’re a bona fide company providing excellent advice and high-quality service.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.