Setting Financial Goals as a Freelancer

To achieve financial success, you need to set clear, meaningful goals and work towards them consistently. This sets the foundation for all other financial strategies and decisions and helps you stay on track to achieve both short- and long-term goals.

Setting financial goals is not just about dreaming big and hoping for the best—especially when your income is variable. It’s a skill that requires introspection, prioritization, and a willingness to make tough choices and trade-offs. In this article, we’ll explore how you can develop and stick to a plan that allows you to pursue your personal and professional dreams.

Step 1: Identifying Your Financial Goals

The first step in effective financial goal-setting is clarifying your goals across different time horizons. Most financial goals can be categorized into short-term (1-2 years), medium term (3-5 years), and long-term (5+ years) objectives.

Examples of common financial goals across these timelines might include:

• Short-term: Building an emergency fund, paying off credit card debt, saving for a vacation.
• Medium-term: Buying a home, starting a business, saving for a child’s education.
• Long-term: Retiring comfortably, leaving a legacy, achieving financial independence.

To identify your goals, start by brainstorming a list of all your financial aspirations, no matter how big or small. Don’t worry about prioritizing or filtering them at this stage—the goal is to get everything out on paper. Next, categorize each goal as short-, medium-, or long-term based on your ideal timeline.

Step 2: Prioritizing Your Financial Goals

Once you have a clear list of your personal and professional financial goals, it’s time to prioritize them based on their relative importance and urgency. To help you do this, consider how important each goal is, the consequences of not achieving it, and what you might have to sacrifice to achieve that goal.

You’ll also factor in the length of time it’ll take you to achieve each goal, and ideally have a mix of timelines throughout your list or priorities.

Remember, prioritizing your goals isn’t about choosing one dream over another—it’s about creating a strategic roadmap that allows you to pursue multiple goals in a balanced, intentional way.

Step 3: Breaking Down Your Goals into Actionable Steps

With your goals identified and prioritized, it’s time to start breaking them down into specific, actionable, steps. A convenient way to do this is by creating a set of SMART (specific, measurable, achievable, relevant, time-bound) targets.

Next, create a timeline and action plan for each goal, outlining the specific steps you need to take and the milestones you want to achieve. Be sure to identify any potential obstacles or challenges you might face and brainstorm strategies for overcoming them.

Step 4: Reviewing Your Goals and Avoiding Procrastination

Financial goal-setting is not a one-time event. It’s an ongoing process requiring regular review and adjustment. As your life circumstances change and new opportunities or challenges arise, especially in the ever-changing entertainment industry, your goals and priorities may also shift.

Review your goal map and action plans regularly—say, monthly or quarterly—to assess your progress and make any necessary course corrections. Celebrate your achievements along the way, no matter how small, and use setbacks or failures as opportunities for learning and growth.

Set up regular check-ins for yourself, with your financial partner, or with an accountability buddy to help keep yourself from procrastinating or ignoring your goals. During these check-ins, be honest with yourself about what’s working and what’s not. Are you sticking to your monthly budget? Have you taken on fewer jobs than you anticipated? Or maybe you’re working more than you budgeted for and you’re spending instead of saving.

Sometimes, it’s best to call in a professional. A financial advisor can help in many situations, whether you’re struggling to meet your goals or you’re looking for a way to take your savings and investing to the next level.

Ultimately, your financial goals are not just about the destination—they’re about the person you become and the experiences you have along the way. By aligning your goals with your values and staying committed to the journey, you can cultivate a sense of purpose, resilience, and joy far beyond the number in your bank account.