Important financial goals in our lives

Are our life goals our own or are they other people’s financial goals? The goals we work for, whose are they?

In our lives we have many financial goals. We consider all of these financial goals important for our lives. We want vacations, we want outings with friends, we want to have a nice car, a gorgeous house, a vacation home, accessories and clothing from big brands… a luxurious life, but which ones actually bring you the most satisfaction?

If we ask many people (which I did in all the financial planning sessions that exceed 100 Romanians) what they would actually want, they are goals that derive from needs, not from desires.

Needs vs. desire

Yes, it is nice to be able to go on luxury vacations, to have a vacation home next to a luxury house with a swimming pool to live in or to drive around in a car with a lot of horsepower, but all these desires remain in second place. Needs come first.

Needs are those objects, things that we have to achieve, because we want to achieve our needs. We want to support our children and we have to support them because a school abroad is expensive. We have to support ourselves in retirement because the state will no longer be able to support us. We have to have our own house and have it paid for until retirement because then we will not be able to support all those expenses from the small pension that we will have.

Desires are those that would be nice to fulfill, but set yourself something realistic!

Pessimism vs optimism

I often hear: “I don’t plan because I’ll be disappointed if it doesn’t come true”. In fact, it’s about a lack of energy and motivation. And it’s actually about a WISH. When you have a wish, you would like to have it, but you don’t get up in the morning motivated to work, to move mountains (that saying) if it’s a wish you can live without. However, when it comes to having your own house or you want to close your mortgage faster, to no longer owe the bank, then you will get up motivated and achieve it, you won’t complain about not setting goals for fear of not achieving them because you will achieve them. I’ve met many people who have closed 30-year loans in 4-5-10 years.

Need is what pushes you to do things; the desire no, because it is a beautiful dream, but if it does not come true it will not be a problem, on the other hand, if you do not achieve what is needed, yes, it will be a problem.

The important financial goals in our lives are…

own home
supporting children
retiring from work in an optimal way

These three goals, as you can see, are needs.

To identify the important goals in our lives as human beings, here is the pyramid of financial needs – a reinterpretation of Maslow’s pyramid of needs: https://www.e-learning.psihologiabanilor.ro/obiectivele-financiare-si-etapele-vietii/

Important financial goals in our lives: Owning your own home

A home is a need, because in our country there is a culture of ownership. We are the residents with the most owners. We want (and need) to be owners. It is not a must for everyone, but for most of us, it is.

Being an owner for most people means having psychological and financial comfort. You don’t want to be at the mercy of the owner or the bank. When you retire from work, you want to have your own property to which you can pay all the bills, not debts and leave something behind. We want to leave our children and grandchildren a dowry; an asset, not a debt.

Important financial goals in our lives: Supporting children

Supporting children comes from the West, where parents take care of their children’s education from the moment they are born. Besides, university fees are expensive, and we want our child to be as well prepared for life as possible. Now, you need to be flexible, to reorient yourself, and to do this you need a school system where the emphasis is on mental flexibility, on various skills, to be able to make decisions and act according to circumstances.

These systems are also found in our country, and the fees are high. Besides, in addition to the school fee, it is necessary to cover living there: accommodation, food, and if we do not take care of this planning from the time they are young, when our children graduate and have to leave, it will be a problem, because we will not have the money necessary to support them.

Important financial goals in our lives: Retirement

The state will not be able to support us. And not only us. This system, based on contributions, is no longer sustainable now. The declining birth rate, the increasing exodus, the increasing life expectancy (yes, you read correctly and I did not write it wrong) lead to this discrepancy. Our pension, those of us who are now young, will not be enough for us to have a decent living. And it is necessary to think now, because now we have time at our disposal.

Our benefit is: time

Who does not think that there is a long way to retirement? Everyone! And it’s normal, it really is, but you don’t want to use what you have in abundance now, namely: time? You don’t have much money now because you’re young, because you want a house, a family, but you have time: use it! It doesn’t cost you anything! Only put aside what you can afford to lose. What amount wouldn’t you mind losing along the way? 5 lei per day? Very good! Open an investment account, allocate 5 lei per day to an investment fund. That way you’ll be able to support yourself in retirement without having to struggle too much.

Do you want to earn more, do you want to allocate more money later?

Sure! I agree with you! But put those 5 lei a day. When you have a higher salary, when you earn more, you will put more aside and it will be a significant amount, but in life all kinds of situations arise and you don’t know when it will happen to be much better. Allocate now, use the time and later you will put more aside.

Time is your ally now, don’t make it your enemy! When you don’t have time or money, you will regret it. Why regret it? Regrets then don’t help. Use time! Now!

Important financial goals in our lives: Financial independence

Most young people want to achieve this financial independence. What is it? It assumes that there is a passive income that covers all the above needs and even covers some desires.

From my experience, I have noticed that young people who just want more money and that’s it, are not motivated to take action in this direction, but those young people who have a need, not a desire, behind this goal work to achieve this goal.

Analyze what your needs are and what your desires are. Which is stronger: need or desire? You can also find out more about setting financial goals here: https://stelabarbaros.com/3-pasi-in-setarea-si-atingerea-de-obiective/

Need is similar to getting dressed. Desire is similar to dressing in a certain company coat.

Choose what is important to you and what you need. You can also integrate a desire into your plan to make it easier to follow the path.

Choose to plan your goals now! You can use the financial planning service. It can be found in the services section of the website.

Good luck in becoming aware of money and the important financial goals in your life!