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I want to talk about something that completely changed my personal financial journey. The power of setting financial goals.
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Welcome back everybody. I pray you all are having a blessed day. I want to talk about something that completely changed my personal financial journey. The power of setting financial goals. Now I know when people hear the words financial planning or financial goals, they think like, man, that must sound boring or too complicated, but let me tell you this.
This actually one of the most powerful and freeing things you can do because once you set the goals, your money finally starts to work for you instead of you always having to work for for your money. So, let's talk about why having a plan matters and what it can look like in real life.
Hi, my name is Prince Chenou. I'm a certified financial planner candidate and I work in wealth management at a major financial institution. I create these videos to make personal finance simple, practical, and accessible for people just like you and me. My goal is to break down financial and money topic as much as I possibly can so you can make decisions with confidence.
So, let's jump in. Let's imagine two people. They both get paid the same exact amount of money. Let's say $2,000. Person A gets the paycheck and right away they spend the money paying off credit card debt, car loans, mortgages, and other bills while also spending on going out for things like bars, clubs, restaurants, you name it.
By the end of the month, they barely have any money left and the little that they do have can go towards savings and investing. Or maybe even they might need to swipe their card again if they've ran out of money. Then they have to wait till the next month to do it all over again.
Now, compare this to person B and take that same $2,000, but they do something different. The very first thing that they do is they put some money aside for savings and investing. Why? Because they have goals that they're planning for. Maybe they want to build up emergency fund or maybe they want to buy a house.
Maybe they want to retire a little bit earlier. After that, they pay for their fixed expenses and whatever is left is what they use for their fund. Here's the thing. Both of them are living on the exact same paycheck. But do you notice the difference of how the money is being spent and prioritized?
Person A is funding the past, which is credit card debts, car loans, then the present with keeping up with friends and partying, and then the future, while person B is prioritizing the future first, then the past, and then finally the present. Between the two, which one do you think would be in a better spot 5 years from now?
I'm putting my money on person B. That's the power of a plan. It's not about how much money you make, it's how you manage that money. Now, seeing the differences between these two different people really highlights why having a plan matters. It's not just about how much money, it's about giving your money a direction.
That brings me to the next point. A plan just doesn't help you get ahead financially. It gives you intention and focus. When you have a plan, you no longer are just reactive. You're being intentional and proactive. Instead of your money running for you, you're the one running your money. Take something simple like your fund spending.
Let's say that you decide for the month that you're only going to spend $500 on going out, buying clothes, or hanging out with friends. basically the stuff that brings you enjoyment but isn't essential. Once you set that number, you start paying attention. Every dinner, every concert ticket, every impulsive Amazon purchase you make is pause and you ask yourself, is it really worth it?
That pause is the power of a plan. It forces you to think instead of just swiping. Now, compare that to living without a plan. Every text from your friend saying, "Let's go out." Every flash sale, everything that you see through scrolling through your phone is pulling you in different directions. You end up saying yes to everything, but in reality, you're spreading yourself so thin that nothing gets closer to your goals.
Here's a picture for you. Imagine if I threw up 10 markers in the air and I told you to catch all of them. You'll probably drop most, if not all of them. But if I said, "Hey, focus on catching just the red one." You suddenly have more clarity. You're locked in and you're actually going to be able to catch them.
That's exactly what a plan does. It narrows your focus so you stop chasing everything and instead grab and hold on to things that really matter. When you know what you're aiming for, your nos and your yeses become more clearer. You stop wasting energy on things that don't move you forward and you start to put your best energy into things that do.
That's how people make progress. Not by doing everything, but by doing the right things consistently. And here's the cool part. When you start living with this kind of clarity, something else happens. You begin to see things that you didn't notice before. This leads you to the next benefit of having a plan. It opens your eyes up to opportunities.
Think about it. Have you ever bought a new car and then all of a sudden you start seeing the exact same car everywhere? It's not like the world has suddenly bought the same car overnight. Is that your brain is now tuned in. Basically, your mind play pays attention to what is not considered important.
The same thing happens when you set financial goals. Let's say your financial goal stay for a home. You suddenly notice down payments assistant programs, first-time home buyer work workshops, or conversations about real estate that you used to ignore. Or maybe you'll realize that your local credit union is offering lower mortgage rates than you would have thought.
If your goal is to start investing, you'll catch yourself leaning in when someone's talking about stocks, real estate, bonds, or even your co-workers mentioning their 401k. You might notice news articles, podcast, tips that you scrolled in the past not coming to present. If your goal is to pay off debt, you might spot side hustles like tutoring, freelancing, ride sharing that gives you extra income, maybe even things around your home that you can sell for extra cash.
Before those opportunities blended into the background, now your brain highlights them because you have a filter in place. That's the power of setting goals. They act like a spotlight. They bring the right opportunities into focus and help you ignore distraction. Without goals, everything feels random. With goals, your brain is consistently scanning for things that aligns with where you want to go.
Once you start seeing these opportunities line up with your goals, you begin to feel more in control of your future. But here's the flip side of it. When you don't have a clear goal, life starts to feel a lot scarier. That brings me to the next point. Having a goal is that scarier than not having one at all.
Here's a truth that a lot of people don't realize. Not having a goal is actually scarier than having one. Let me explain. If I said, "I want to be rich." What does that really mean? $100,000 a million enough to not worry about bills again. It is so vague that your brain doesn't know where to start.
And when something is vague, it doesn't just feel confusing. It feels overwhelming. Your mind starts thinking about all the things that could go wrong. What if I don't have make enough? What if the market crashes? What if I fail? That's why having no clear goal can actually create anxiety and it leaves you feeling out of control like you're floating aimlessly.
Now, let's make it specific. Suppose I say I want to save $100,000 in two years. Suddenly your brain starts to break that down into actionable steps. $100,000 in 24 months, that's $417 a month. Now it's tangible. You can have a plan. Maybe you cut $50 from dining expenses or selling things that you didn't use or pick up small hustles that you can make a difference.
What once felt overwhelming now becomes manageable and empowering. Here's another example. Imagine two people. One say, "I want to get fit." The other one says, "I want to run a 5K in three months. Start with walking 30 minutes three times a week and then gradually start running." The first person might never start because the goal is too vague.
The second person has a clear road map and small wins along the way. Which one do you think is likely to lead to success? The second one hands down. Life is always throwing curve balls, unexpected expenses, emergencies, or opportunities that you didn't see coming. We can't control those. But when you have a plan, you take back some of that control.
It acts like an anchor. Even when life tries to toss you around, you have a target to aim. You know exactly what you're working towards. And that makes the journey less scary and a lot more intentional. So, let's bring it all together. Having a financial goal does more than just give you the numbers to chase.
It gives you direction. It helps you focus. It helps you to see opportunities. And it removes a lot of fear of the unknown. When you know where you're going, it's easier to make decisions with the confidence. rather than reacting to every bill, sale, or impulse that comes your way. Think about it. If you don't tell your money where to go, it will disappear on its own.
That's $100 of you thought that you could save for fun might quickly get eaten up by taking out screening services or last minute purchases. But when you give your money a purpose, it changes everything. Suddenly, every dollar has a job. Whether it's to build for an emergency fund, chipping away at debt, or growing your investments, you feel more in control, more confident, you have more motivation because you're actively steering your financial life instead of being tossed around by it.
Here's a simple way to start. My challenge for you today is to take just 10 minutes today and write down one financial goal. Doesn't have to be huge or life changing. Maybe it's just save $50 a week, paying off a single credit card, or investing $25 in your retirement account. The key is to pick something specific, measurable, and realistic.
The sooner that you give your money the direction, the sooner you'll see and feel like you're actually moving forward. And here's the bonus. That small step today starts a rippling effect. Small wins build momentum, and the momentum grows into habits, which over time can completely change your financial future. That's how financial freedom begins.
If you found this video helpful, please like, comment, subscribe, and I really do appreciate you all.
This video is for general educational purposes only and is not personalized investment, tax, or legal advice. Every situation is different. Talk with a qualified professional about your circumstances before acting. PLC Wealth Partners is a registered investment adviser. See our disclosures.
