How to Set (and Stick To) Your Financial Goals

Setting financial goals isn’t just about numbers—it’s about creating a plan that supports the life you want to live. Whether you’re working to pay off debt, save for something important, or simply get better control over your spending, having clear goals can make all the difference.

At Credit Canada, we help Canadians build confidence around money by breaking big financial goals into small, achievable steps. Sometimes, the biggest shift happens before the first dollar is saved or the first payment is made—when there’s a mindset change. That moment when something “clicks,” and suddenly your goals feel possible.

This year during Financial Literacy Month, we’re inviting Canadians to “Flip the Switch” on their money by discovering their financial lightbulb moment. 

It’s based on something we hear often: “I know what I should be doing with money—budgeting, saving, paying down debt—but I can’t seem to follow through.” We know knowledge alone doesn’t drive change. Insight does. When you uncover the belief, habit, or realization behind your money behaviour, the actions start to make sense—and stick.

That’s the purpose of our campaign: to help Canadians unlock personal insights that lead to real behaviour change. If you are ready to explore your own financial “aha!” moment and take one clear, manageable step forward, visit creditcanada.com/lightbulb.

After you’ve had your financial lightbulb moment, the next step is to put that insight into action. Setting clear, achievable goals helps turn awareness into momentum—and mindset into measurable progress. 

Why Setting Financial Goals Matters

Financial goals give your money a purpose. Without them, it’s easy to operate on autopilot—paying bills, reacting to expenses, and hoping things will fall into place someday. Clear goals move you from reacting to planning. They help you make decisions with intention, whether you’re choosing how to spend, save, or manage debt.

When you know why you’re making a change—and where you’re heading—financial decisions feel less stressful and more empowering. Goals also help reduce uncertainty. Instead of wondering how you’ll ever get ahead, you have a plan to follow and milestones to measure.

There’s also a practical benefit: research consistently shows that people who write down their financial goals are more successful in achieving them. For example, one well-known study found that individuals who wrote down their goals and tracked their progress achieved them at significantly higher rates than those who only thought about their goals. Writing goals down creates clarity and accountability—it turns good intentions into a tangible plan.

If you're managing debt, rebuilding after a financial setback, or simply trying to create more stability, goal-setting brings structure and focus to the process. It reminds you that improvement is possible and gives you a path forward.

“Setting goals is one of the most important steps toward achieving financial success. We all have dreams, but without a clear plan to reach them, they may never become reality. Start by setting small, achievable goals to build momentum and confidence in your ability to succeed. Your future self will thank you when those goals turn into real accomplishments.” - Mike Bergeron, Counsellor Manager, Credit Canada.

How to Set Financial Goals That Stick

Many people have good intentions when it comes to money—save more, spend less, pay down debt—but intentions alone rarely lead to lasting change. Here’s how to set goals that feel realistic and achievable.

Start With Your “Why”

Ever have that moment when something just clicks? That’s what our Flip the Switch campaign is all about—helping you find that light bulb moment. It’s that simple insight that changes how you see money and reveals one clear step you can take today to feel more confident, clear, and empowered in your financial decisions. 

At the heart of this is understanding your purpose for money—your “why.” Everyone’s purpose is different. For some, it’s about feeling secure. For others, it’s about supporting family, having freedom, or building a future that feels fulfilling. Once you understand your purpose, your goals stop being tasks on a checklist and start being stepping stones to what truly matters to you. 

Before setting your goals, take a moment to discover your “why” by completing our Purpose of Money quiz at Credit Canada. 

Ask yourself:

• Why do I want to achieve this goal?
• What will my life look like when I reach it?
• How will I feel when this financial stress is lifted?

For example:

• “I want to pay down debt so I can stop feeling anxious every time bills come in.”
• “I want to build savings so I feel secure when unexpected costs arise.”
• “I want to save for travel to spend time with family abroad.”

When your goal connects to your values—security, family, freedom, peace of mind—it becomes more meaningful, and you're more likely to stay committed.

“If your “why” isn’t meaningful or connected to your core values, it becomes easy to set your goals aside. A strong and purposeful “why” keeps you motivated—because when it’s weak, the cost isn’t just financial; it can also impact your future success.” - Mike Bergeron, Counsellor Manager, Credit Canada

Use the SMART Framework

SMART goals are

• Specific
• Measurable
• Achievable
• Relevant
• Time-bound

Instead of saying “I want to save more money,” try, “I will save $5,000 in 12 months by transferring $417 each month into a dedicated savings account.”

SMART goals provide clarity and structure, turning a wish into a plan.

Prioritize and Plan

It's common to have multiple financial goals, but trying to do everything at once can feel overwhelming. Prioritize based on urgency and impact. For many people, the biggest priorities are reducing high-interest debt and building an emergency fund.

As you decide which goals to focus on first, think back to your “why.” Which goals best support what matters to you most right now? Maybe it’s gaining a sense of security, creating breathing room in your budget, or freeing up resources for family or future plans. Let that purpose guide your priorities so your financial actions stay aligned with your values. 

Then, once your priorities are set, break them down into smaller tasks. 

For example:

Goal: Pay off $3,000 in credit card debt by March 31, 2026

Plan: Pay $250 every month, track progress weekly, set reminders for payment dates

Big goals become less intimidating when they're divided into manageable steps.

Don’t Set Too Many Goals at Once

Ambition is great, but too many goals can lead to burnout. Choose two or three goals at a time. Focus until they become habits, then move on to the next.

Slower progress that lasts is better than fast progress that fades.

Prioritize Debt Repayment and Emergency Funds

If you're working to regain financial stability, these two areas usually come first. High-interest debt can limit your financial flexibility and create stress. Meanwhile, a small emergency fund prevents you from relying on credit when unexpected expenses arise.

Even saving $20 to $50 per paycheque adds up. The goal isn't perfection—it’s consistent progress.

Create a Supportive Environment

Achieving your financial goals isn’t just about willpower, it’s about setting yourself up for success. One of the easiest ways to stay consistent is by creating an environment that supports your progress. 

Automate as much as possible by setting up recurring transfers to savings, scheduling bill payments, and using budgeting tools to monitor your spending. Doing so removes temptation and helps you stay consistent. 

Accountability also matters. Share your goals with a friend, family member, or counsellor who can encourage you and help you stay on track.

Types of Financial Goals

Once you’ve defined your “why” and started shaping your goals using the SMART framework, it helps to think about when you hope to achieve them. Most financial goals fall into one of three categories—short-term, medium-term, or long-term. Looking at your goals this way helps you balance immediate priorities with your bigger-picture plans.  

Short-Term Goals (0–1 Year)

Short-term goals are the foundation of financial progress. They build momentum and establish habits that support your long-term plans. They also offer faster wins, which helps you stay motivated.

Examples include:

• Build a $1,000 emergency fund by saving $85 per month for a year
• Pay off a $600 credit card balance within six months.
• Follow a monthly budget for the next 12 months to track spending and find savings opportunities.

These goals feel manageable and achievable within months—not years. For someone just starting to regain control of their finances, they create confidence and forward movement.

Medium-Term Goals (1–5 Years)

Medium-term goals often take a bit more time, discipline, and consistency. They often require  consistent saving or repayment habits and a bigger commitment to budgeting and tracking.

Examples include:

• Pay off $5,000 in credit card debt within two years.
• Save $10,000 for a vehicle or home down payment within three years.
• Build an emergency fund equal to three months of expenses within three years.

These goals sit in the middle ground. They’re not as immediate as short-term goals, but they lead to meaningful, noticeable change.

Long-Term Goals (5+ Years)

Long-term goals shape your long-term financial security and future lifestyle. They require commitment and planning over time.

Examples include:

• Contribute regularly to an RRSP or TFSA to build retirement savings.
• Pay off your mortgage within 20 years instead of 25.
• Save for a child’s education by contributing monthly to an RESP.

Even if long-term goals feel far away, starting early—even with small amounts—creates more options and less stress down the road.

How to Track Financial Goals

Once your goals are set, the next step is tracking them. Seeing your progress reinforces your efforts and helps you make adjustments when needed.

Choose the Right Tracking System

Everyone tracks differently, and that's okay. The right tracking system is the one you’ll actually use.

Options include:

• Budgeting apps
• Bank app savings features
• Spreadsheets
• A notebook or planner
• Printable goal charts for visual motivation
• Calendar reminders

Credit Canada also offers free tools, including the Butterfly app and a budget planner, to help you stay organized.

The format matters less than the consistency. Choose something that fits your lifestyle.

Review and Adjust Your Goals Regularly

Your financial goals should grow and change as your life does. Review them monthly or quarterly to see how you’re doing. Maybe your income has changed, your family situation has evolved, or your priorities have shifted. Checking in helps you stay realistic and motivated.

Celebrate Milestones

Progress deserves recognition. When you reach a milestone—like paying off a credit card or saving your first $1,000—take a moment to celebrate. These moments reinforce positive habits and remind you that your effort is paying off.

"Frank came to Credit Canada many years ago hoping for an answer to his prayers. Living on disability for some time, he had relied on his mother’s support whenever things became overwhelming financially. After her passing, Frank felt completely alone, with growing debt, no savings, and no clear path forward.

After connecting with one of our certified credit counsellors, Frank not only regained control of his debt but also built a realistic budget that allowed him to start saving a little each month. He knew he would never be wealthy, but he wanted to prove—to himself and to his late mother—that he could stand on his own.

The last we heard, Frank is doing well, with savings now exceeding a thousand dollars. It took time, effort, and determination, but Frank’s story is a powerful reminder that with the right plan and perseverance, anyone can overcome financial hardship." - Mike Bergeron, Counsellor Manager, Credit Canada

Credit Canada Can Help You Achieve Your Goals

You don’t have to reach your financial goals on your own. Credit Canada’s certified Credit Counsellors help Canadians every day with free, confidential advice and practical tools to manage debt and build financial confidence.

We’ll help you:

• Create a budget that supports your goals
• Build an emergency fund plan that fits your income
• Develop a strategy for paying down debt faster
• Track your progress so you stay on course

Talk to a Credit Canada expert about your financial goals or explore our debt relief options that align with your long-term plans.

People Also Ask

What is the 50/30/20 rule?

The 50/30/20 rule is a simple and practical budgeting guideline that helps you allocate your after-tax income into three categories:

• 50% for your needs — essential costs you must cover, such as housing, groceries, utilities and transportation. 
• 30% for your wants — non-essentials that make life richer, like streaming services, dining out, travel and subscriptions. 
• 20% for savings and debt-payments — money set aside for your future (emergency fund, retirement, investments) or used to pay down high-interest debt.

It’s a rule of thumb rather than a rigid formula, meaning you may need to adjust the percentages depending on your income level, cost of living or financial goals. 

Setting financial goals is one of the most meaningful steps you can take toward financial independence and peace of mind. 

At Credit Canada, we’re here to help. 

Whether you’re looking for personalized advice to set realistic financial goals or exploring debt relief options that support your long-term financial health, our certified credit counsellors are ready to assist.

Speak to a Credit Canada counsellor or call us at 1(800)267-2272 and take the next step toward building a more confident financial future.