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Short and long-term financial goals

Financial goals can be short to medium term, like clearing an overdraft or paying off a loan, or long-term like saving enough for retirement. Your goal might be linked to a purchase, like buying a car or house, or to the desire to know that you can provide for your dependants in the future.

To help you identify financial goals that could form part of an overall financial plan you can take the Money Advice Service's financial health check.

Bear in mind that you may have to set new financial goals if something changes unexpectedly in your life, like divorce or loss of a job.

• Use the Money Advice Service's financial health-check tool Opens new window

Money to help meet your goals

Once you've identified your goal or goals your first step is to see what finances you have available to put towards them. You may find that you can meet one or more of your goals from existing funds.

The Money Advice Service website offers tips on how to get to grips with your money, and an online budget calculator that will tell you how much income you have left each month. It also offer tips on how you might be able to boost your income.

• Managing your money on Moneymadeclear from the FSA Opens new window

Buying suitable financial products

If you need to save or invest in a financial product in order to meet your financial goal, the one that's most suitable will depend on a number of factors including:

If you need help with this you may consider getting professional financial advice.

• Getting financial advice - information from the Money Advice Service Opens new window

Shopping around or getting advice

Once you've identified the right type of financial product, you can shop around yourself and compare deals or get financial advice. If you buy without advice you have less protection than if you buy with advice. Read our related articles under 'In this section' below.

Reviewing your finances and goals

Remember that as things around you change, your financial goals may need to change too. You'll need to review short to medium-term goals regularly and longer-term goals, like repaying your mortgage or pension fund contributions, yearly. You'll also need to review them if your circumstances change.

More useful links

• The Money Advice Service - impartial information about your money Opens new window

Useful contacts

• Money, tax and benefits contacts