Financial goals without stress: a fintech expert told how to build a long-term savings system

The beginning of the year is usually a reset point for personal finances. After all, it is during this period that people most often think about how to put their budget in order – close old financial "holes" and start moving towards specific goals. At the same time, practice shows that most financial plans "break down" after a few months, either due to vaguely formulated goals or due to the lack of a money management system. Fintech expert, co-founder of Concord Fintech Solutions Olena Sosedka told UNN how to set financial goals for the year correctly and what personal budget planning models actually work.

Where to start financial planning?

According to the fintech expert, the key mistake is to start planning not with analysis, but with desires.

A financial goal cannot exist on its own. First, you need to honestly answer the question: how much do I actually earn, how much do I spend, and where exactly does the money "dissolve"? Without this, any goals turn into fantasies

The fintech expert advises starting planning with a full audit of income and expenses for at least the last six months, even if it is unpleasant or seems trivial.

It is the study of financial statements that will help identify "gaps" in the budget, understand the main items of mandatory expenses, and find out if there were impulsive purchases that could have been avoided.

How to choose a financial management scheme?

After the audit, you can proceed to choosing a financial management scheme. Olena Sosedka notes that there is no universal model for everyone; the chosen system must correspond to a person's lifestyle.

Some people prefer the classic 50/30/20 rule, where 50% of income goes to basic needs, i.e., mandatory budget items, 30% to desires, and 20% to savings and investments. Others find it more comfortable to keep detailed records of each expense category or use the "first to the piggy bank" approach, where a portion of income is automatically set aside immediately after it is received.

The main thing, according to her, is not the ideal table, but the stability of adhering to the chosen budget management model.

How to formulate a financial goal?

Olena Sosedka advises paying special attention to the formulation of financial goals themselves. According to her, abstract formulations such as "I want to earn more" or "I need to save money" will not work.

The goal must be specific, measurable, and time-bound. For example: accumulate 150 thousand hryvnias by December or invest 10% of annual income during the year. When a goal has a number and a deadline, the brain begins to perceive it as a task, not a dream, and automatically proceeds to its execution.

She calls the division of goals into levels an important element of planning. Short-term goals for 3-6 months, medium-term goals for up to a year, and long-term goals for several years. This approach, according to Olena Sosedka, reduces psychological pressure and allows you to see progress.

When a person sees that small goals are being achieved, trust in their own financial system and confidence in their abilities appear. This is much more effective than one global plan that is constantly postponed.

How to simplify the savings process?

Automation will help simplify the process of saving money. Olena Sosedka advises removing the human factor from this process as much as possible.

Automatic deductions to savings accounts, investment services, or digital deposits will significantly increase the chances of achieving goals, both short-term and long-term. We are less tempted to spend money that we do not see in our current account.

At the same time, she warns against excessive rigidity and too strong budget restrictions. A financial plan, according to her, should be a living document.

Incomes can change, unforeseen expenses appear, war and macroeconomic instability also affect our financial behavior. It is necessary to understand that it is normal to review goals once a quarter and adjust them, instead of blaming yourself for a "failure."

Properly set financial goals are not about strict restrictions, but about conscious control. A full audit of finances, clear goals, a properly selected accounting and expense distribution system, automation, and regular review of plans turn financial planning from stress into a tool for stability and savings. This approach, according to the expert, allows not only to plan your financial year, but also to gradually build financial stability in the longer term.