Today we chart out the process of saving for your goals, and what does this process look like. 

If you're looking for a trusted source to help you stay on top of the ever-changing financial world of investing, retirement and estate planning, and asset protection, whether it's for you and your family or your small business, you're in the right place. This is the 1715 Treasure Coast Financial Wellness Podcast, where we'll keep you up to speed with the latest market news and conditions every week. Now here's your host, Thomas Davies. Well, hello, and welcome to another edition of the 1715 Treasure Coast Financial Wellness Podcast.

My name is Thomas Davies. I'm a wealth advisor here in Stewart, Florida, and welcome. Boy is it hot. I think I said that last week.

Man, the temperatures just keep climbing, and I think they said August 8th is the heat index peak for the summer. I can't get here soon enough. It's like a hot, wet blanket outside. But besides that, some great news this week and last week and the weeks before.

The equity markets are rallying. Nice to see an upturn in the markets. Some news that the Fed may be letting their foot off the gas a little bit, although there may be some more interest rates rises here in the next couple months. But we will see.

Ben Bernanke came out and said that he thinks this last interest rate rise would be it. We will see. Other people are saying there's maybe one or two more in the cards as we go along here. But it's been a nice uptick in the markets, seeing equities rally.

The probability of recession has gone down, drops to about a 20% according to Goldman Sachs. They just feel that recession is not going to be on the table. It's only a 20% chance of that coming out. But equities are in the optimism phase, and that's those four phases of the market cycle.

Despair being the bear market. We'll call that 2022. Hope which is a strong, short, and probably the most volatile as we uptick there. And then we got growth, which is basically recovering.

Right now we're probably about 10% off those all-time highs, getting back to normal a little bit. And then the optimism phase, which is right now as we get to higher valuations and some analysts think that's where we are. So does that mean that we're going back to despair anytime soon? Maybe.

Time will come. We still have August, September, and October to deal with the markets. It wouldn't surprise me to see a 5%, maybe 10% pullback. So if you have equities that have risen and you've made a little bit of cash, it makes sense to take some cash off the table, take some profits, and wait until valuations come down a little bit.

If they do, come those typical worst months of the market in August, September, or October. Another thing that's going on, and I mentioned this last week, or I should say the week before, are CDs. CDs are creeping up 5% to 5.5%. But don't allocate those to your long-term goals.

They're for your short-term goals, and that's something that we're going to talk about today is setting goals, and that's going to be the basis of the podcast, is setting goals. But CDs, attempting 5%, 5.5% for that one-year CD, six-month, one-year, it's great to use that for your short-term goals. If you want to have cash set aside for something you may be purchasing in the next year, that is a great place to put it. It's a great short-term place to park, but don't fund that for your long-term goals.

Your long-term goals generally are going to outperform that 5%, 5.5%. So you want to make sure that you're in the right places there and allocate them to your risk. So with that, we want to talk about setting goals. Steve Jobs had the famous saying that if you don't write them down, they are just a wish.

So today we're going to talk about setting up your financial goals and setting a financial strategy and understanding the importance of financial goals. It's a game changer. And today we're going to guide you through the step-by-step process of setting up effective financial goals to pave your path towards a brighter financial future. So let's dive in.

Well, before we get to the how-to, let's understand why setting up financial goals are so crucial. Financial goals serve as a roadmap directing your efforts and your resources towards specific achievements. They help you stay focused. They help you stay disciplined and motivated on your journey towards financial success.

By having well-defined goals, you can measure your progress, celebrate milestones, and make informed decisions about your spending and your investments. Well, the first part of setting up goals is what is it that you want to do? You've got to identify your aspirations. Take a moment to ponder what you truly want to achieve financially.

It could be saving for that dream vacation, buying a house, starting a new business, or planning for retirement, which I talk about all the time. But remember, the key is to make the goals specific, measurable, achievable, and relevant, and time-bound. That's also known as the SMART criteria. Now that you have your aspirations, it's time to prioritize them.

And that means making them short-term goals, mid-term goals, or long-term goals. Prioritize each goal's urgency and the importance it is in your life. Some goals might be short-term, like building an emergency fund, while others could be long-term, such as retirement planning. By prioritizing your goals, you can allocate your resources wisely and avoid spreading yourself too thin.

Well, now that you have made your goals and aspirations, it's time to understand also your financial situation. So you got to make those goals realistic goals. It's essential to have a clear understanding of your current financial situation. Create a budget to track the income and expenses, assess your debt and your savings.

Knowing your financial strengths and weaknesses will help you gauge the feasibility of your goals and make necessary adjustments if required. You got to set achievable timelines. That's probably going to be the next step here. Time is a critical factor when setting financial goals.

Determine a realistic timeline for achieving each goal. Once again, make it a short-term, mid-term, and long-term. Keep in mind your current financial situation and any potential life changes. Be patient with yourself as some goals might take longer to accomplish.

Just be patient. That's all you have to do. Sometimes it takes a while. But setting achievable timelines prevents frustration and encourages you to have consistent progress.

Now let's talk about the big goals and break those down. Some financial goals may seem daunting at first glance. I always like to say a thousand-mile journey in the desert starts with that first step. Make them more manageable.

You want to break them down into smaller, actionable steps. For instance, if your goal is to pay off a significant debt, focus on paying a specific amount each month. Smaller milestones act as building blocks and give you a sense of accomplishment along the way. Once again, small steps to achieve the big step.

Sometimes you have to adjust your goals. Maybe the goals that you made yesterday aren't going to be the same goals that you make tomorrow. Life is unpredictable and circumstances change. Don't be afraid to adjust your financial goals if needed.

Maybe you received a promotion or perhaps you encountered an unexpected expense and you got laid off. Regularly reassess your goals to ensure that they align with your current financial situation and aspirations. We're talking about building an emergency fund. You have to have an emergency fund.

I mentioned I like six months. Some people like three months, but if the car breaks, the refrigerator, the oven blows up, you get hurt, you want to have some money in the bank. Use that rule of three. I like the rule of six, but the importance of building an emergency fund is just because of life's uncertainties can throw you unexpected challenges along your way.

Having a safety net can prevent you from derailing your progress. If all of this seems just too much and you're like, I can't handle it, get professional advice. Come see a person like myself. I have software tools that will help you plan along the way for these goals and really be able to earmark money for those goals and achievements.

If you feel overwhelmed and you're like, I just can't do this, it's too much, it's too much to write down, too much to task, seek for help. Ask for help. Go out and get financial help. Contact myself, financial advisor, and get financial advice.

We can provide personalized guidance tailored to your unique situation and help you make informed decisions. That's what we're here to do. You want to track your progress. That is really important.

Congratulations. You've set up your financial goals, but the journey really doesn't end there. You got to regularly track your progress to stay on track. Have I hit those small actionable steps in my long-term goals?

Maybe you've achieved some of those short-term goals and it's time to reassess and make some new short-term goals. Use tools like spreadsheets. I mentioned some software that as a financial advisor I have, which are some of the different financial applications to monitor income, your expenses, and your savings. There's a lot of great tools out there.

I have some of my own that I use with my clients, but seeing your advancements will motivate you to keep pushing forward. Well, and there you have it, fellow financial enthusiasts. Setting up goals is the cornerstone of a successful financial journey. Remember to dream big, but start small.

Prioritize and remain adaptable. By being mindful of your financial situation and following these steps, you'll be well on your way to achieving the financial freedom that you deserve. As always, I thank you for watching. I hope you found this helpful.

Give it a thumbs up. Give it a like. Hit that subscribe button. That will conclude the 1715 Treasure Coast Financial Wellness Podcast.

Once again, my name is Thomas Davies. I am a wealth advisor here in Stewart, Florida. Have a great weekend and we will talk to you soon because I am out. Thank you for listening to the 1715 Treasure Coast Financial Wellness Podcast.

If you enjoyed this episode, share it with a friend who might like it, and please rate, comment, and subscribe. If you'd like to contact us, find more information, or if you'd like to keep up with us on Facebook, Instagram, Twitter, or LinkedIn, check out our website at www.tdwealth.net. Have a great day and we'll talk to you next week.