How to Achieve Your Financial Goals and Non-Financial Goals in 2026

As the new year approaches, we start thinking about our goals. Which ones have we met? Which ones were left behind? And, most importantly, which ones will we set for next year?

When it comes to goal setting, money is a big part of the picture, since you are probably setting financial goals for yourself or need a budget to accomplish them.

On the one hand, financial goals may include getting out of debt, completing your emergency fund, or saving for retirement. On the other hand, goals that require money to be achieved may include going on vacation, taking a course, or donating to charity.

You see, money is something you must consider when you are setting New Year’s goals. The problem is that you sit down, write down your goals, and maybe even create your budget. Then the new year hits, with its own set of worries, the hustle and bustle of day-to-day life, and the unexpected events that just happen.

In the end, you are left with nothing but a list of good intentions and perhaps a good-looking spreadsheet with your budget. At that point, it can feel like budgeting is something you are supposed to do, not something that actually helps you live the life you want.

That cycle repeats year after year. Eventually, you may assume you are bad with money, bad at budgeting, or both, no matter how successful you are in life. In reality, you are just lacking clarity on your finances. This can be addressed with financial literacy, reflection time, and a budgeting system that focuses on the big picture, such as using our free budget template.

The issue is not discipline or motivation. Most budgets fail because they focus on tracking expenses instead of supporting the goals that actually matter to you.

This post will show you how to think about money when setting goals for the upcoming year, how to translate those goals into numbers, and how to build a budget that supports them. The focus is on aligning your money with your priorities, rather than tracking every expense. Hopefully, this will help you feel calm and confident with your money, without tracking every dollar or cutting out everything fun.

Financial Goal Setting

Financial goals are the specific money-related outcomes you want to achieve, such as paying down debt, building savings, or preparing for retirement.

Before starting to work on your budget, you want to think about the financial goals you want to reach in the upcoming year. Ideally, these goals should help you feel financially secure and less anxious about money.

These goals are the foundation of financial stability and reduce stress by preparing you for both expected and unexpected events.

Remember, not every financial goal needs to be fully completed in one year. The purpose of goal setting is progress and direction, not perfection.

Even though we all come from different backgrounds, some common financial goals include:

Getting Out of Debt

Debt, especially consumer debt like credit cards, is a financial burden. After all, you are paying for something you already used, plus interest.

Paying down debt is an important financial goal not only because monthly payments can take up a large portion of your income, but also because carrying a debt balance can make it harder to find financial stability in the long term.

Reducing debt also increases your flexibility, giving you more options and breathing room when life changes.

You may not be able to pay off all your debt in just one year. This depends on how much debt you have and how much of your income you can dedicate to extra payments. The first step is to align your long-term vision with a simple goal: getting out of debt completely.

To achieve that long-term vision, you should make a commitment to yourself. Your debt balance, meaning how much you owe, should always go down and never up. This principle can help keep you on track when things get difficult.

Now that you have committed to getting out of debt, you can set realistic goals for the upcoming year. For example, instead of aiming to eliminate all debt, you might set a goal to reduce your total balance by a specific amount or percentage by the end of the year.

Think of the entire year as a milestone toward your long-term goal. To do this, you need to figure out how much of your income you can use to pay down debt each month.

Somethings to consider when setting this goal:

• How much you are required to pay each month according to your lender.
• How much of your income is going toward debt.

Some advisors recommend following the 50/30/20 rule, which suggests allocating 20 percent of your income toward financial goals like paying down debt. This is a guideline, not a strict rule, and your ideal percentages may look different. You can read more about this here: CNBC.com

• Make sure you leave money for other financial goals.

Achieving goals like building an emergency fund or saving for things you want can help you stay out of additional debt.

• If you can afford to pay more than the minimum payments, consider debt repayment methods like the snowball or avalanche approach. This Investopedia article does a good job explaining them.

Emergency Fund

An emergency fund is money you have saved to cover unexpected expenses or a loss of income, from your car breaking down to losing your job. In other words, this is your peace-of-mind money.

If you do not have any emergency savings, building this fund often makes sense before aggressively paying down debt or investing. Without emergency savings, even small surprises often lead back to credit cards or loans, undoing other financial progress.

When building your emergency fund, experts recommend aiming to save between three and six months of expenses. This amount of time is often enough to help you figure out your next move when things get difficult.

Something to consider when setting up your emergency fund:

• Three to six months is a general guideline, but it depends on your situation. For example, if your income is unstable, you may want to aim for nine or twelve months.
• You do not need to complete your emergency fund in one year, but you should be working toward it. If this is your first year, aiming for one month may be enough.
• Make sure this money is kept in a safe account that you can access easily and without penalties.
• Savings lose value over time due to inflation, so try to earn some interest. Without sacrificing safety or accessibility, consider a high-yield savings account or a certificate of deposit.

Long-Term Savings

Long-term savings usually refer to retirement savings. This is money you save and invest over many years, often using accounts that offer tax advantages, such as a Roth IRA. https://www.investopedia.com/terms/r/rothira.asp

Thinking about retirement can be challenging because you are giving up money today for a future version of yourself you cannot fully picture. Still, even small contributions create long-term impact, and your future self will likely be grateful you started.

Make sure your budget includes savings for retirement. How much you save depends on your age and when you plan to retire.

 If you are young and retirement is decades away, even small contributions can make a difference due to compound interest. Even setting up a small automatic contribution can be enough to get started and build consistency.

If retirement is closer or you want to retire early, you may need to save more aggressively. Reflecting on this is a good opportunity to think about how you envision your future and how you plan to support it.

Something to consider when setting your retirement goal:

• Do not skip saving or investing. Even if you are unsure about retirement, setting an annual savings goal, even a small one, is better than nothing.
• Try to understand the retirement and tax laws that apply to you. This can improve both investment returns and tax efficiency.
• Set an annual retirement savings goal and decide whether you will distribute it evenly across the year.

The three financial goals discussed here, paying down debt, building an emergency fund, and saving for retirement, are all essential for financial success. Each one takes time before you see real results. Progress builds gradually, so do not get discouraged. Working on one goal can help you gain momentum that supports the others.

If you want help seeing how these goals fit into a full-year plan, our free MoneyMapLab budget template is designed to connect income, goals, and priorities in one place.

Non-Financial Goals

While financial goals create stability, non-financial goals are often what bring meaning, motivation, and enjoyment to everyday life.

When you think about goals for the upcoming year, money is not the only thing that comes to mind. You may want to visit a new country, lose weight, or return to school.

These goals are not directly financial, so it is easy to leave them out of your budget. However, most things still involve money. For example:

• Losing weight may involve gym memberships or healthier food.
• Traveling includes transportation and accommodations.
• Studying can involve tuition or memberships.
• Spending more time with your partner may involve dining out or occasional getaways.

There are often cheaper or free alternatives, but if you want your budget to support both financial and non-financial goals, you need to determine whether additional expenses should be included.

When these expenses are planned for in advance, you can pursue your goals without guilt or the feeling that you are “breaking” your budget. A good budget does not eliminate enjoyment. It allows you to spend intentionally on what matters to you.

For example, if you want to lose weight, you might choose to run in the park or hire a personal trainer. One option is free and the other costs money. Which one is right for you depends on affordability and personal preference.

List the goals you are setting for the year and determine whether they require money. Research your options, estimate the cost, and consider how often you will need to pay for them.

Accounting for the cost of non-financial goals helps you stay on budget. More importantly, it makes you more likely to achieve them, since you are forced to think through what they require ahead of time and cannot rely on money as an excuse later.

How to Include Your Financial Goals and Non-financial goals in Your Budget

Once you have clarity on your financial and non-financial goals, you need to assign numbers to them for the upcoming year. Determine how much you will put towards:

• Paying down debt,
• Building your emergency fund,
• Saving for retirement,
• Funding non-financial goals.

This is where having a clear annual view of your finances can make the process much simpler. To make sure your budget supports your goals:

• Include these numbers in your budget
• Make sure your income can cover your expenses and goals.
• Revisit and adjust expenses, income assumptions, or timelines if needed

This last point  may involve finding new  income sources, cutting expenses, or adjusting goals.

Once your goals are included, you do not need a perfect budget or to stress about every small expense. You simply need to ensure you are moving toward your goals.

Instead of tracking every cup of coffee, review your progress at the end of the month and check whether you are meeting your goals. For instance, check that your total debt balance has actually gone down from the previous month, that your emergency fund increases and that any automatic transfer you set up is working properly.

This check-in does not need to take more than a few minutes and can often be done by simply reviewing your account balances.

Starting with long-term goals and breaking them into annual milestones helps ensure your budget serves a real purpose, not just organization.

The Budget Template That Adapts to You

If you are ready to set goals for 2026 and want a budget that helps you in  real life instead of rigid rules, our free Excel template may be helpful.

It is designed for people who want clarity and direction without micromanaging every dollar, helping you see your entire year at a glance and connect your income directly to your goals.

Conclusion

Goal setting is exciting, and it is important for achieving what you want in both the short and long term. Budgeting is a tool that helps you reach your goals, but it is not meant to make you feel stressed, small, or behind. If it has, that does not mean you failed, it just means you need an easier approach.

When you shift from abstract goals to ones that align with your life vision and reflect them in your budget, you are far more likely to achieve them. A budget that supports your goals should help you feel calm, intentional, and in control of your money.

👉 Download the free MoneyMapLab budget template to create a budget that actually works for your life. Calm, flexible, and designed to grow with you. A budget that supports your goals should make you feel grounded and in control, instead of overwhelmed.

We have a whole post on how to use it, you can read it here.