7 ways financial planning could help you set realistic goals

 

As 2026 begins, it’s a good time to think about what you want to achieve in the coming months. A tailored financial plan can help you set realistic goals.

Creating goals on your own can be challenging, especially if they bring together several different parts of your financial plan or have a long-term time frame. If you’re overly ambitious, it can be disheartening if you don’t reach the target you’ve set. On the other hand, if you’re too cautious, you could miss out on opportunities.

Here are seven ways a financial plan could support your goals in 2026.

1. A financial plan can help you assess your starting point

A valuable aspect of a financial plan is understanding your current financial position. To assess what’s possible, you first need to know where you are.

A financial plan might involve reviewing your assets and budget so you’re in a better position to identify where changes could be made.

For example, if your goal is to retire in 10 years, you may benefit from increasing your pension contributions. By understanding where your money is going, you might find that you could reduce your day-to-day spending or divert some of your savings to your pension.

2. Your goals are at the centre of your financial plan

While managing your finances often conjures thoughts of figures and calculations, what’s really at the centre is your goals.

Working with a financial planner can create a space to explore what matters to you. Some goals might already be clearly defined, such as supporting children when they want to get on the property ladder or retiring by a set date.

However, other goals might become apparent through discussions with your financial planner, such as being in a position to overcome a financial shock or achieve peace of mind.

3. A financial plan can translate goals into numbers

Once your goals are set out, it’s time to consider what you’ll need to achieve them.

If you set a vague goal, such as “retire comfortably”, it can be difficult to assess if you’re on track.

A financial plan can help you get to grips with the numbers. So, your goal might become “to secure a retirement income of £40,000 a year”. You can then take it a step further to calculate what the size of your pension pot will need to be at retirement, and how you might need to alter current contributions.

4. A financial plan can help you balance multiple goals

Most people don’t have just one financial goal. It’s common to have several, often competing, priorities.

You might be paying off your mortgage, saving for retirement, putting money aside for your children, and hoping to go on holiday at the same time. A financial plan can bring together these different goals, so you’re able to strike the right balance between short- and long-term objectives.

5. Creating a cashflow model can help you visualise your changing wealth

One challenge of creating an effective financial plan is that you’ll usually need to consider how your finances will change over decades. It can be difficult to assess how the decisions you make today could have a positive or negative impact in the future.

A cashflow model is a tool that allows you to visualise how your wealth might change in different scenarios. For instance, you might use the model to see how adding different amounts to your investment portfolio each month will change your ability to reach your goals.

6. Working with a financial planner allows you to consider factors outside of your control

It’s not just the factors you can control that will affect the outcome of your financial plan. Sometimes, external influences, like the rate of inflation or stock market performance, might have an impact.

While you can’t know for sure what outside factors will occur, you can use a cashflow model to test different scenarios. For example, when investing, you might model several different average annual rates of return to assess what they’d mean for your goals.

This allows you to consider how your finances would cope in different scenarios, and you may be able to take steps to help ensure your goals stay on track.

7. A financial plan can create accountability

Every year, thousands of people make and break a new year’s resolution. According to a YouGov poll (17 December 2025), only 38% of people who made resolutions at the start of 2025 had kept all of them.

Working with a financial planner means you’ll have regular meetings and someone who can hold you accountable. With a clear strategy to follow, you’ll know when you’re straying from the path that could turn your goals into reality. As a result, you might be less likely to break the commitments you’ve made.

Talk to us about your goals for 2026

If your goals have changed or you’d like a review to understand whether you’re on track, please get in touch to arrange a meeting.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

The Financial Conduct Authority does not regulate cashflow modelling.