To Achieve Financial Stability, Start With Small Steps
Setting specific and manageable goals — and celebrating your successes — can make your financial journey much less daunting.


The journey toward achieving financial stability and reaching long-term goals can often seem overwhelming. However, I advocate for an approach centered on small, manageable steps. This method is not about overnight transformations; it's about cultivating consistency, patience and setting achievable short-term objectives that cumulatively lead to significant long-term results.
Embarking on your financial journey
For those defining their financial journey in 2024, the initial step is crucial — designating a family chief financial officer (CFO). This role entails a comprehensive assessment and ongoing monitoring of the family's financial status, including income, expenses, debts and savings.
It’s essential to set clear, realistic goals, whether it's saving a specific amount, reducing debt or making wise investments. The family CFO should also develop a simple, realistic budget that aligns with these goals, ensuring the family's financial aspirations are grounded in their current financial reality.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Setting financial goals at the beginning of a new year can be a game-changer. The key is to make these goals specific and measurable. Some potential goals include:
- Build and maintain an emergency fund. Commit to setting aside a fixed amount from each paycheck to build an emergency fund, or utilize direct deposit to systematically save for unexpected expenses that pop up throughout the year. Putting aside $75 to $100 each paycheck can end up making a difference when you least expect it. If that feels like too much, designating any amount toward savings will always set you ahead.
- Reduce credit card debt. This requires a strategic approach. Calculate your total debt and plan monthly payments, aiming to significantly reduce, if not entirely clear, the debt by year-end. Be sure to account for limited use of your credit cards through the next 12 months. If eliminating all of your debt seems out of reach, consider paying down 50% or 75%.
- Keep close tabs on your financial standing. Monitoring your credit score and continually educating yourself about personal finance are also vital components of this process. Regularly review and adjust your financial goals, be it monthly or quarterly, to ensure you maintain focus and keep yourself accountable. The family CFO can be responsible for sharing key information with the family, as well.
Budgeting: A cornerstone of financial planning
Effective budgeting is a cornerstone of financial planning and aligns perfectly with the philosophy of taking small steps. A practical approach is the 50/30/20 rule, where 50% of income is allocated to necessities, 30% to wants and 20% to savings or debt repayment.
This strategy, however, is not set in stone; it requires regular adjustments to adapt to life's ever-changing circumstances. Small, monthly budget tweaks are far more effective and manageable than overhauling your budget sporadically or insisting your budget remain the same, despite changes to bills or your lifestyle.
Tools to help: Professionals, technology and education
Financial institutions, particularly credit unions, play a pivotal role in supporting members on their financial journey. Many credit unions offer personalized advice, educational workshops and a range of resources tailored to individual needs. Engaging with financial experts at your institution can provide insights and direct you to relevant tools and information, enhancing your financial literacy and decision-making skills.
Financial education is fundamental in understanding the importance of small steps in your financial journey. It empowers you to make informed choices, fostering a sense of long-term financial responsibility. Understanding financial concepts, tools and strategies not only helps in setting realistic goals but also in identifying potential shortcuts and avoiding pitfalls.
In today's digital age, technology is a valuable ally in tracking financial progress. Budget-tracking apps and financial tools can provide a clear picture of where you stand in relation to your goals, allowing for timely adjustments.
Overcoming obstacles and celebrating successes
One common challenge in financial planning is the tendency to set overly ambitious goals. Break down your goals into smaller, more manageable milestones to maintain motivation and momentum. You can manage both by setting clear, meaningful goals and celebrating small victories along the way.
My team at Affinity Federal Credit Union has witnessed numerous success stories where individuals and families have achieved significant financial milestones by focusing on small steps. One inspiring example is a family who treated financial planning as a collective activity. They held monthly family meetings to discuss progress and challenges, involving everyone in the decision-making process. This not only kept them on track toward their financial goals but also instilled positive financial habits in the younger family members, preparing them for future financial success.
The path to financial stability and achieving your goals doesn't have to be daunting. By embracing small, manageable steps and leveraging the support and resources available, you can confidently navigate this journey. Remember, it's the cumulative effect of these small steps that leads to significant achievements in your financial life.
Related Content
- Are You Overlooking Your Financial Institution’s Resources?
- Five Tips to Boost Your Financial Wellness This Winter
- Three Ways to Lessen Financial Stress and Create Work-Life Balance in 2024
- Five Steps to a Stronger Financial Plan
- Five Ways You Can Assess, Manage and Pay Off Debt
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Kevin Brauer, a distinguished finance industry professional with over three decades of experience, has been at the helm of Affinity Credit Union as CEO and President since January 2023. His substantial contribution to Affinity over the past seven years has been instrumental in propelling the firm's value proposition and innovating its financial well-being initiatives. Brauer leads Affinity's dedicated team of 500 employees at its Basking Ridge, N.J., headquarters and throughout its 18-plus branches.
-
Is Trump's Tax Plan Speeding Up the Looming Social Security Funding Crisis?
Social Security Social Security's combined retirement funds are running out of cash, and its insolvency date is expected to occur in less than a decade.
-
How to Keep Your Work Friends After You Retire
Work friendships can boost teamwork, lift your spirits, and make the job more fun. But when you retire, these friendships can fade. Here's a look at why that happens and what you can do about it.
-
Here's Why Munis Aren't Just for Wealthy Investors Now
Buyers of all levels should be intrigued by municipal bonds' steep yield curve, strong credit fundamentals and yield levels offering an income buffer.
-
I'm a Financial Planning Pro: Do Your Family a Final Favor and Write Them a Love Letter
Specify your preferences in this personal document that shares your wishes on how you want to be remembered and celebrated. Your family will thank you for easing an emotional time.
-
The Future of Financial Advice Is Human: Gen Z Trusts Advisers, But AI Skills Matter
Graduates entering the workforce trust human advisers more than AI tools with their financial planning. But AI can still enhance the client/adviser relationship.
-
I'm a Wealth Adviser: If You're a DIY Investor, Don't Make These Five Mistakes
Even though you may feel confident because of easy access to investing information, you may be making mistakes that could compromise your long-term performance. Here's what you should know.
-
Building a Business That Lasts: The Critical Steps to Avoid Blunders
'Another Way' author David Whorton offers advice on how to build an 'evergreen' business that endures by avoiding common pitfalls that can lead to failure.
-
I'm a Financial Pro: Why You Shouldn't Put All Your Eggs in the Company Stock Basket
Limit exposure to your employer's stock, sell it periodically and maintain portfolio diversification to protect your wealth from unexpected events.
-
How Will the One Big Beautiful Bill Shape Your Legacy?
The One Big Beautiful Bill Act removes uncertainty over tax brackets and estate tax. Families should take time to review estate plans to take full advantage.
-
Should You Claim Social Security Early or Late? A Financial Adviser Weighs In
There isn't a wrong age to start claiming Social Security, but there are factors that everyone should consider to avoid leaving money on the table.