Have you ever thought, “Financial planning isn’t for me. I don’t have any Big Goals.” Or maybe you are actively involved in financial planning but think, “I don’t have any Big Goals right now – why am I even doing this?” 

I hear you. I’m an example of a person who currently doesn’t have any Big Goals like buying a home, pursuing further education, or starting a family. And the handful of goals I do have can’t be clearly defined in financial terms like learning to play the guitar well or deepening my yoga practice. However, I still have a robust financial plan for three reasons: One, I want to maintain a strong financial foundation so emergencies don’t take away from my potential goals; two, I want to invest in what brings me joy today; and three, I want to give my future self the freedom to dream up and pursue new Big Goals. (I’ll get into each of these reasons in more detail later on.)

Having and working toward Big Goals shouldn’t be the only reason you have a financial plan. A good financial plan helps you resolve the ever-present tension between what you need and want today and what you’ll need and want in the future, including when the future is unclear. 

If you’re currently wondering how to financially plan when you don’t have any Big Goals, this blog post is written for you. 

Focus on Big Priorities First

Many of our clients first come to the financial planning work with goals like understanding where to put their cash, creating a plan to pay down student or credit card debt, or learning how to save money during a recession. They might think these are Big Goals – which they certainly seem to be – but I recategorize them as Big Priorities. The difference being that Big Priorities need attention immediately, while Big Goals are on the horizon. Sometimes, people don’t have Big Goals because Big Priorities are constantly in the way, blocking their view of what they’re really striving for. Knowing the difference is an important reason why financial planning is so valuable. 

In my case, building up my Emergency Fund is my Big Priority right now. I tapped into it when I went back to school for financial planning (my Big Goal). Changing my career wasn’t so much of an “emergency” as it was an opportunity, but that’s exactly what that bucket of cash was for. As part of my financial plan, I’ve set a target amount to replenish. Automatic cash transfers from each paycheck ensure that I slowly, but surely, reach my target. This way, when I decide to focus on goals, I won’t be compromising my financial security.

When Big Priorities are resolved, you can focus more energy on designing your life. Most of the time, you can tackle Big Priorities at the same time you pursue Big Goals. If you don’t have any Big Goals, that’s okay. Focus your planning on the foundational items that will give you the space to have Big Goals.

Invest In What Brings You Joy Today

My yoga practice and learning guitar are two things that bring me joy these days.  Last year, they were two Big Goals to simply start learning guitar and to find the right yoga studio. Now that I’ve completed them, maybe I’ll find a new Big Goal, like going on a yoga retreat or performing a genre of music I really like. I’ll discover those in time. For now, I’m enjoying my life and don’t need to force myself to create Big Goals for the sake of having them. 

Remember my Big Priority of building up an Emergency Fund? Technically, I could tackle it faster if I diverted money away from learning guitar and paying for a yoga studio, but then my financial plan would be out of balance. 

The core of a financial plan is your cash flow picture–i.e. all of the money that’s coming in the door and going out the door. Once you understand how much you spend on a monthly basis compared to your income, you can figure out how much bandwidth you have to save money, chip away at debt, and spend money on things (including people and experiences) that bring you joy. A well-rounded financial plan helps you take care of Big Priorities as they come and go, helps you maintain a sustainable standard of living, and builds toward more freedom down the road. 

Give Your Future Self Flexibility

Because I don’t know what kind of Big Goals I’ll have decades from now, I’m laying the groundwork for options in my long-term investments. This includes making regular contributions to my qualified retirement plan (a 401k in my case). To use old-fashioned terms, this is the “retirement planning” part of my financial plan. Will I fully stop working at 65? I don’t know. But I want to stay flexible for my future self. And my retirement account is one way I can build wealth for the long-term. This way, I can collect more than just Social Security and thus potentially do a lot more when I’m older. 

Another way to give your future self flexibility is to live within your means. Do you have a plan for when you get your next raise? If not, you might experience lifestyle creep, where your discretionary income almost subconsciously rises to match your new level of income. One part of my financial plan is to increase savings whenever my income increases. Again, I balance this with my current needs. When my income goes up, I automate my paychecks to increase the amount I divert into long-term savings. I know how much I can divert into savings versus spending, because I have a good sense of what I want to spend my money on, and what I’m willing to forego (e.g. more dinners out, a bigger apartment, etc.) to build that long-term flexibility. 

If you don’t have any Big Goals, that’s perfectly fine. You still have a lot to plan for! Work on building a financial plan that’s firmly rooted in your values, one that addresses the Big Priorities, facilitates the kind of life that brings you health and joy today, and allows you to save toward Big Goals (or just the space for them), all at the same time.