Goals…. what they are and how do I set them?
Life goals are defined as the desired states that people seek to obtain, maintain, or avoid. Because our lives include many different parts, life goals can be broad. It can include things like relationship goals, career goals, financial goals, and more.
Today, I am focusing on financial goals.
Setting goals may sound mundane or juvenile but taking that simple action can make a tremendous impact on all areas of your life.
People who set goals live more fulfilled lives and stand a better chance of attaining financial security. The best way to get what you want is to plan to achieve it. Depending on the size of your goal, setting up an action plan can take time and effort.
Goals are much more than just targets that we shoot for throughout our lives. They are vital to the quality and direction of our lives, determining where we’re going next and where we will end up further down the line.
So how do you set goals?
It’s important to understand that a goal is clear when it is specific, can be explained easily, and the person who is setting it understands why they want it. Understanding why you want to achieve a personal goal provides greater clarity about your objective, as well as the road to achieving it. You will need to separate them into short-term, mid-term, and long-term goals.
It’s not enough to just say “I want to have an emergency fund,” you must be specific. “I want to start an emergency fund and have $1,000 saved in three months” is a much clearer goal.
Some examples of short-term goals are creating a budget, paying off credit cards, and finally starting that emergency fund that everyone needs to have. Mid-term goals can include paying off student loans, buying your first home, or saving for college. Long-term goals focus on your future once you are approaching retirement.
For instance, paying off your mortgage, estimating your retirement needs, and increasing your retirement savings are some examples of long-term goals. It’s extremely crucial that goals have a time frame or a deadline. Deadlines tell you where you need to be in your progress and they provide more motivation while pushing you to work harder.
Once you’ve set the goal, how do you achieve it? Sometimes obstacles and roadblocks will appear unexpectedly on your path to achieving your goals. These obstacles can either discourage you or teach you. The first option will lead you to slow your progress, or worse, give up altogether.
On the other hand, if you analyze the obstacles that you face, you will likely discover something that needs to change in your life. You may discover things that need to be different in your routine or that need to be cut out completely.
These things can be actions, habits, thoughts, beliefs, emotions, and even relationships. Do you have an unsupportive friend that always encourages you to spend money, even after you have explained how you are trying to cut back on those dinners out?
Keep in mind the reason you set that goal in the first place. If you continuously remind yourself of your financial goals, overspending with friends may be less likely to happen. Surrounding yourself with like-minded individuals, friends who are also money-conscious, will make it easier to stay on the straight and narrow path.
You can refer to your goal(s) over time, track your progress, and eventually reap the reward of seeing your dream become reality. If you have a goal that ultimately will take years to achieve, life will sometimes get in the way. You may need to alter your plans to accommodate life changes.
With a thorough plan for reaching your goal, reviewing how these changes alter your path becomes easier. In turn, you will be poised to adapt more quickly while remaining on course toward the goals. Setting goals doesn’t have to feel like a chore. Reward yourself for making progress and completing objectives.
If you can’t figure out exactly what you need to do, a financial coach can help you succeed in setting and achieving your goals. They will keep you motivated, cheer you on when the journey gets tough, and guide you down the road to the life of your dreams.
Call, text, or email today for a free consultation.
