Financial Literacy by First Alliance Credit Union

How to Set Goals and Achieve Your Dreams: A Step-by-Step Guide

Written by Kamel LoveJoy | Jan 21, 2025 9:56:14 PM

Setting goals can feel overwhelming, especially if you're just starting out or rebuilding your life. But goals are the foundation for creating the future you want, whether it’s financial stability, career success, or personal growth. Let’s dive into how to set goals, make them achievable, and stick to them—featuring the heartfelt story of Sam, a young man from Rochester, Minnesota, who turned his dreams into reality.

Start with Your “Why”

The first step in setting goals is understanding why they matter to you. Your "why" is the fuel that keeps you going when things get tough.

Meet Sam:

Sam, a 24-year-old waiter, loved his job but knew it wasn’t enough to support his aging parents. His “why” was simple: to help his parents when things broke at home. They weren’t pressuring him to move out, but he wanted to give back. His dream? To become a digital marketer and make a better living.

Takeaway:
Write down why your goal matters to you. Whether it’s to support family, gain independence, or build confidence, your “why” will keep you motivated.

Set S.M.A.R.T. Goals

To turn dreams into reality, your S.M.A.R.T. goals need to be:

  • Specific: Clearly define what you want.
  • Measurable: Track your progress.
  • Achievable: Keep it realistic.
  • Realistic: Align it with your “why.” Knowing with a little work it can be achieved. 
  • Time-bound: Set a deadline.

Sam’s Goal:

Sam wanted to become a digital marketer within six months. He made it specific (learn digital marketing), measurable (complete one course), achievable (use his free time), realistic (help his parents), and time-bound (six months).

Action Step:
Write one S.M.A.R.T. goal for yourself. For example, “Save $1,000 for emergencies in six months by setting aside $170 a month.”

Get started setting goals today!

Break Goals Down into Small Steps

Big goals can feel intimidating, so break them into smaller chunks. Think in terms of three-month, one-month, and weekly goals.

Sam’s Strategy:

  1. First 3 months: Save $170 a month by taking the bus instead of Ubers and making coffee at home.

  2. Next Step: Use $24 to take a digital marketing course on Udemy.
  3. Daily Practice: Dedicate 1-2 hours daily to learning and building a portfolio.

Action Step:
Use a calendar or planner to outline weekly tasks that move you closer to your goal. For example, if you want to improve your credit score, start by checking your credit report this week.

Balance Saving and Spending

It’s tough to save while managing expenses, but even small changes can make a difference.

Tips for First-Timers:

Tips for Fresh Starters:

  • Rebuild credit with a secured credit card. Use it for small expenses and pay it off monthly.
  • Prioritize needs like housing and utilities before tackling long-term savings goals.

Action Step:
Set a short-term goal to save for emergencies while paying down debt. Allocate small amounts consistently to build momentum.

Learn from our expert!

Tools and Resources to Stay on Track

You don’t have to do this alone! The right tools and support can make all the difference.

Sam’s Journey:

Before his first digital marketing paycheck, Sam met with First Alliance Credit Union. Together, they:

  • Created a budget using the Zero-Based Budget method.
  • Discussed secured credit cards to build his credit responsibly.
  • Opened a  WINcentive® Savings Accounts  to set aside money.

Sam appreciated that First Alliance didn’t try to sell him a product but instead worked with him to achieve his goals.

Tools You Can Use:

  • Budget Calculators: Plan your monthly expenses effectively.

  • Club Savings Accounts: Save for specific goals like a car or apartment.
  • Community Support: Join online platforms or local groups for mentorship and advice.

Action Step:
Visit First Alliance Credit Union to explore tools and resources that fit your needs. Remember, our mission is to show up, listen to your story, and provide possibilities.

Celebrate Small Wins

Every step forward deserves recognition. Celebrate progress to stay motivated.

Sam’s Win:

By month five, Sam landed an internship in digital marketing, paying slightly more than his waiter job. It wasn’t his dream role yet, but it was a step closer. He treated himself to a coffee date with friends to celebrate.

Action Step:
Set small rewards for reaching milestones, like enjoying a nice meal after hitting a savings goal.

The Long Game: Stay Focused on Your Vision

Setting long-term goals can feel overwhelming, but remember, progress is a journey. Keep revisiting your "why" and adjust as needed.

For First-Timers:

  • Save for a down payment on your first car or apartment.
  • Build credit by keeping your credit utilization below 30%.

For Fresh Starters:

  • Rebuild savings after financial setbacks.
  • Focus on long-term security, like retirement planning or buying a home.

Action Step:
Review your goals every three months. Are they still relevant? Do you need to adjust timelines?

First Alliance Credit Union: Your Partner Every Step of the Way

At First Alliance Credit Union, we believe everyone deserves access to possibilities. Our mission is simple: we show up, we listen to your story, and we provide possibilities that fit your unique journey. Whether you’re just starting out like Sam or rebuilding after life’s challenges, we’re here to help.

Let us help you turn your dreams into achievable goals. Visit First Alliance Credit Union today and take the first step toward your brighter future!

Have more questions about how to set goals? Ask us!