Setting and Measuring Non-Financial Life Goals in Planning

Why non-financial life goals matter

Financial planning traditionally emphasizes numbers: retirement dollars, investment returns, and taxes. But people make—and stick to—financial choices for reasons beyond money. Non-financial life goals give those choices context. When a plan reflects what you want to do, be, and experience, it becomes easier to prioritize spending, saving, and trade-offs (American Psychological Association, 2020: https://www.apa.org).

In my practice over 15 years, clients who articulate non-financial goals—like weekly family dinners, a morning fitness routine, or a 10-year plan to write a book—make better trade-offs during spending shocks and feel less regret about sacrifices they make for long-term objectives.

Authoritative resources that support linking values to planning include AARP’s guidance on balancing money and dreams (AARP, 2021: https://www.aarp.org/money/budgeting-savings) and professional standards from financial-planning organizations about client-centered goals (CFP Board: https://www.cfp.net/why-work-with-a-cfp-professional).

A practical framework for setting non-financial goals

Use a structured approach so goals are clear and measurable. I recommend combining SMART with a habits-and-metrics overlay:

• Specific: Define the activity or outcome. “Improve sleep” becomes “average 7 hours of sleep five nights per week.”
• Measurable: Attach clear metrics—frequency, duration, or a binary milestone (completed/not completed).
• Achievable: Confirm resources and constraints. Is it realistic with your job and family commitments?
• Relevant: Tie the goal to your larger life purpose or financial plan. Why does this matter?
• Time-bound: Add dates or review periods.

Overlay: For each goal, pick leading (process) and lagging (outcome) indicators. Leading indicators are what you do (exercise minutes/week). Lagging indicators are results (BMI, job promotion, book manuscript completed).

Example goal setup:

• Goal: “Deepen social relationships.”
• Leading metric: Host or attend 2 social gatherings per month.
• Lagging metric: Self-rated relationship satisfaction survey every 6 months.
• Financial alignment: Budget $600/year for social activities; reallocate entertainment budget.

Measuring progress — concrete metrics and tools

Pick metrics that are objective or consistently self-reported. Useful categories include:

• Time-based: hours per week spent on an activity (reading, volunteering, family time).
• Frequency: number of events per month (date nights, fitness classes).
• Completion milestones: certificates earned, course modules finished, manuscript chapters done.
• Well-being scores: short validated scales (e.g., 1–10 life satisfaction) recorded monthly.
• Financial proxies: how much you budget/spend to support the goal (travel fund, tuition, class fees).

Tools you can use:

• Habit trackers and apps (e.g., Strava for exercise, Duolingo for learning streaks).
• Shared calendars for family goals (Google Calendar, iCal).
• Personal dashboard spreadsheets to track metrics and budget impact.
• Quarterly planning reviews with a planner or accountability partner.

Aligning non-financial goals with the financial plan

Non-financial goals should influence resource allocation, risk tolerance, and timeline decisions. Consider these practical alignments:

• Budget: Create a dedicated line item for goal-related expenses (education, travel, therapy).
• Emergency fund sizing: If a non-financial goal depends on income continuity (e.g., entrepreneurship), increase liquid reserves.
• Investment time horizon: If your priority is freedom to travel at 55, lock in a retirement savings cadence that funds that lifestyle at that age.
• Insurance and contingency planning: Health goals may change insurance needs or long-term care considerations.

A straightforward exercise: list your top 3 non-financial goals and ask, “What is the annual cost, and what behavior changes are needed to fund this?” The answers let you add realistic numbers to your financial plan.

Examples — real-world scenarios

1) Family time and vacations: One client I worked with wanted two week-long family trips each year. We quantified costs, set a dedicated sinking fund, and reduced discretionary spending elsewhere. The client reported higher life satisfaction and less resistance to saving afterward.

2) Career pivot with retraining: A mid-career client wanted to become a teacher. We tracked course completion (modules finished per month) as leading indicators and teaching certification as the lagging outcome. Budgeting for course fees and temporary income gaps was integrated into the cashflow plan.

3) Health improvement for longevity: A client targeted a sustained fitness routine (150 minutes/week). We used wearable data for leading metrics and annual healthcare metrics (blood pressure, cholesterol) as lagging indicators. The plan included reallocating gym and meal-prep spending while modeling potential long-term healthcare savings.

Common measurement mistakes and how to avoid them

• Vague goals: “Be healthier” becomes meaningless. Use specifics and metrics.
• Over-reliance on outcomes: Waiting for a promotion (lagging) can hide the value of process steps you can control. Track leading indicators.
• Ignoring cost: Non-financial goals often have financial implications. Model costs early to avoid future trade-offs.
• Too many goals: Spread focus thin. Prioritize 2–4 goals for a planning horizon (12–36 months).
• No review schedule: Goals evolve. Build reviews into your calendar (quarterly or when life changes occur).

Integrating with life stages and events

Different life stages shift which non-financial goals matter most. For new parents, relationship and time-with-child goals may dominate; for pre-retirees, purposeful contribution and travel may take precedence. See related FinHelp guides on “Life-Stage Financial Planning: Adapting Strategy at Every Age” and practical SMART planning in our article “SMART Goals for Financial Planning” for templates and examples:

• Integrating Financial Planning with Life Milestones: https://finhelp.io/glossary/integrating-financial-planning-with-life-milestones/
• SMART Goals for Financial Planning: https://finhelp.io/glossary/smart-goals-for-financial-planning/

These resources help translate personal milestones into planner-ready inputs.

A sample quarterly review template

• Reconfirm top 3 non-financial goals and any new priorities.
• Record leading metrics for the quarter (habit adherence, hours, certifications completed).
• Record lagging outcomes (achieved milestones, satisfaction scores).
• Compare budgeted vs. actual spending related to goals.
• Decide one small experiment for the next quarter (e.g., reduce commuting one day/week to add family time).

Professional tips I use with clients

1. Start small: Turn large aspirations into 30–90 day experiments. Short cycles produce faster learning.
2. Use both subjective and objective measures: Combine feelings (satisfaction) with hard counts (days exercised).
3. Budget to protect meaning: If a goal is important, make it automatic (recurring transfers to a vacation fund, prepaid class fees).
4. Translate goals into decision rules: If family time is the priority, set a rule like “No work after 7 pm on weeknights.”
5. Rebalance: Treat non-financial goals like asset classes—review and reallocate time and money annually.

When to consult a professional

If your non-financial goals imply significant financial commitments—career retraining, early retirement, business startup—it’s wise to work with a certified planner to stress-test assumptions and model cashflows. Organizations such as the CFP Board provide guidance on working with planners (CFP Board: https://www.cfp.net/why-work-with-a-cfp-professional).

Resources and further reading

• American Psychological Association: relationship between money and psychological well-being (https://www.apa.org)
• AARP: balancing money and dreams (https://www.aarp.org/money/budgeting-savings)
• FinHelp articles: “Integrating Financial Planning with Life Milestones” (https://finhelp.io/glossary/integrating-financial-planning-with-life-milestones/) and “SMART Goals for Financial Planning” (https://finhelp.io/glossary/smart-goals-for-financial-planning/)

Professional disclaimer

This article is educational and not personalized financial advice. Use these frameworks to organize thinking and consult a qualified financial planner or licensed professional for recommendations tailored to your situation.

By turning non-financial aspirations into measurable, time-bound steps and mapping their costs and trade-offs, you make your financial plan reflect the life you want to lead—not just a target balance. Take one small goal this week: write it down, pick a leading metric, and schedule a 15-minute review in 30 days.