Have you ever achieved a financial goal of which you were particularly proud? For most accomplishments in your life, you can openly share and celebrate with others. For example, when you were a child, every birthday was significant. Then came your first day of kindergarten, followed by high school graduation, marriage, the birth of children, etc. The list of things that you may post on Facebook and Instagram is almost endless. However, financial goals differ slightly. 

When it comes to reaching financial goals, you must be cautious about who and what information you reveal. You may have already experienced events in your life that you really wanted to share with someone but knew that would be inappropriate. Your common sense advised you to keep your achievement to yourself.

Fortunately, as your financial advisor, we love celebrating your financial goals. Below are two lists. The first is for the youngster in your life. The second is for established adults. How many have you achieved? Do you remember as a youngster the excitement of receiving your first real paycheck? 

Feel free to have a little fun and see how many of the below financial accomplishments you have achieved. Perhaps more importantly, are there any on the list you may now consider pursuing? Are there any that you never imagined being possible?

I invite you to review these lists and celebrate if you have accomplished any of the below areas:

List #1: For youth and young adults (under 25):

• The first time someone gave you money for work (babysitting, cleaning the garage, cutting a neighbor’slawn, etc.)
• Opening your first checking account
• The first $1,000 you saved.
• The first time you interviewed for a “real job” (with a real paycheck.)
• Your first major purchase (a first car, but may also be clothing, shoes, or other expense that seemed significant to you at the time.)
• Your first credit card (which of course was necessary to establish good credit for future financial purchases) 
• Setting up a routine savings plan for your own retirement (such as in a 401k plan, Roth IRA, or investment account)
• Reaching a balance of over $1,000 in cash savings
• Keeping enough funds in your checking account to avoid monthly fees.
• The day you not only wanted to know your credit score, but how you could improve it.
• The first time you signed a lease agreement for an apartment.

List #2–For established adults (over 25):

• Reaching your first $10,000 of investment savings (including 401k plan, Roth IRA, or investment account)
• Having enough money saved for a downpayment on a home. 
• Reaching your first $100,000 of cash and/or of investment savings
• Buying your first home with a mortgage
• Have a routine savings plan in place for college for your children (even if it is only $100/month)
• Paying off a car loan before buying another car
• Paying off student loan debt (this is a big one)
• Paying off all debt except your mortgage (not counting credit cards that you pay off each month.)
• Paying off your mortgage.
• Hitting $1 million in total savings (retirement and investment accounts—but not savings-to-spend or checking).
• Knowing the number you need to comfortably retire at your current lifestyle and you are working towards that number.
• Your young adult children are no longer dependent on you financially. (That means they pay their own car insurance and have their own cell phone plans.)

Major Financial Accomplishments:

• Being able to pay cash for all major purchases, including autos.
• The ability to pay cash for a home (such as to upgrade or buy a 2^nd home).
• Completely paying for your child’s education (if they qualified for scholarships funds which reduced your burden, you should be doubly proud)
• Reaching the point in life you don’t care about your credit score.
• Reaching the point in life you don’t have to work, but you work for other reasons (such as social engagement, desire to help others, etc.)

How many of these goals have you accomplished? How many are you pursuing? You may have noticed that as the list progressed, you may have started to question, “Is that even possible” or “Do people actually do that?”

When it comes to setting financial goals, not all situations fit what is realistic or even desired for your life. You may have other priorities, which is why we do custom financial planning for all our clients. We want to know YOUR values, priorities, and goals.

Feel free to reach out to us if you want to revisit some of your financial goals. We love working with our clients to achieve financial success and are always pleased when we can celebrate your financial milestones with you.

Kristina Bolhouse, CPA/PFS, CFP®

Vice President/Shareholder

© 2023 Kristina Bolhouse and The Arkansas Financial Group, Inc., All rights reserved.

The Arkansas Financial Group, Inc. is a Fee-Only Financial Planning Firm located in Little Rock, AR serving clients in Arkansas and throughout the country.

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