What is a financial goal and how do I set one?

A financial goal is a specific, measurable target — not "save more money" but "save $10,000 for a house down payment by December 2027." Use the SMART framework: Specific, Measurable, Achievable, Relevant, Time-bound. Break big goals into monthly savings targets. Assign each goal its own account or sinking fund. Connecting spending decisions to your specific goals makes it far easier to stay motivated.