Do you ever find yourself feeling stuck in a rut of your daily routine? Does work sometimes feel like a repetitive cycle of earning money, paying rent, buying necessities and paying bills, all to do it all over again? It’s important to reflect and focus on what’s actually driving us. Is it raising a family? Is it becoming wealthy? Is it leaving our mark? I’m a big believer in setting goals, and believe that setting goals for yourself financially can both keep you motivated and on track!

So, how does one set financial goals for themselves? The important thing about goals is that they must be personalized to you, otherwise you’re just following someone else’s goal and that won’t motivate you for very long. Don’t let society or anyone else tell you what your goals should be! It’s important to do a value assessment, dream a little and come up with your own goals which will be your motivating and driving force. Let’s explore what this goal setting process can look like.

Aiming Your Sights High

The old adage “shoot for the moon and if you miss you head for the stars” is a bit corny but there’s a great deal of truth to it. If you set goals that are too easy, you won’t stay motivated long enough and will too quickly achieve them. It’s important to aim your sights at the potential life you wish to lead, because then you can focus your orientation towards it. Think ambitiously. If you’re not able to question if this is realistic or not, you might not be thinking high enough! Some financial examples you could be dreaming of are: paying your house off early, retiring from your job early, buying a vacation house, having an emergency fund or paying for your kids college. These are all very lofty goals that should scare you a bit – but that’s the point!

Setting up a realistic plan

I always say that if you don’t have a plan to get where you’re going then you’re certainly won’t get there! Planning your dream can be important, but also should focus on actual facts. Take for example the dream of moving to a paradise, whether a beach or mountain or quiet spot away from the city. Would you love to live in the Palm Springs Real Estate environment? Start thinking through what steps and how many you need to take to achieve that goal. Start at the end and work backwards. Figure out how much would it cost, when do you want it to happen, how much do you have now, and start running the numbers. Same goes with early retirement, paying off a house or saving for a kid’s college. Figure out how much you should be earning and putting aside each month and allowing for reasonable growth of your money (i.e. stock market or savings account) and write that down as your plan. If you’re in a relationship, it can also be worth sitting down with your partner and truly planning your financial output, assets on your books, and then concentrating them at your goals. Working together to the same goal is more powerful than just one person working towards it!

The Value Of Earned Effort

It’s extremely true that you can only really appreciate things when they are earned. It’s essential to understand that finding your own personal goals means carrying it around with you, not always chasing it somewhere out in the world. Write the goals down, discuss them with friends and family, and as best you can, make them real. The more real your goals are the more focused you’ll be on achieving them.

It’s also important to have periodic check-ins on your goals. Doing this too often can lead to feelings of “I’m never going to get here” or “I’m not making progress” but doing this periodically allows for more growth to be measured, and celebrated! Consider monthly, quarterly or annually sitting down, pulling up your goals and then reviewing the progress you’ve made. Perhaps you’re ahead of schedule, and can scale back. Or maybe you’re not making as much progress as you’d like to be, and decide to pick up the pace a little. If and when you are making adequate progress, be sure to celebrate and enjoy the progress! Achieving goals is a journey and it’s helpful and motivating to celebrate progress.

Summary

Set loft goals, create a real plan to achieve them and measure and adjust your progress towards them!

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