We all have goals. Some of them are unspoken, goals we just keep in the back of our mind. Others are very clear, goals we pursue every day. But how many of us create solid goals when it comes to our finances?
The power of goal setting has been proven over and over. There are even books and movies that talk about it, including The Secret and Write It Down and Make It Happen. Most people set up large goals, like becoming rich or famous. Often it is the small goals that get forgotten and yet are just as important.
So how do you set up goals around your finances?
1.Write down goals and then break them into short-term, mid-term and long-term. Short-term goals are goals you can achieve in one to three years. Mid-term goals from three to ten years and long-term goals are goals that take over ten years to achieve.
2.Make your goals specific. Try to be as concise as possible when writing down what it is you want to achieve. Becoming rich in five years is not specific enough. Try, "I want to earn over $500,000 a year in five years" or "I want to have enough money to travel around the world in two years."
3.Give your goals timelines. Assign dates to your goals. Determine which goals are to be achieved in one year, two years, five years, ten years, etc.
4.Make your goals action oriented. Making a goal action oriented means that there is something you can do to take action toward achieving your goals. If you want to retire at the age of 40, make an action to contribute more money into a retirement fund.
5.Take action now. Once you have written your goals down, set dates and times to them and specific actions, start now in working toward meeting your goals. Whether it means making a phone call, gathering more information or talking to friends or family - take action now.
Setting up goals may seem intimidating as none of us want to fail or have what seems to be too high of expectations. But as the old saying goes, 'People never plan to fail; the just fail to plan' shows us that those who don't achieve the things they want in life is often due to the fact that they expect everything to come to them. They don't realize they have to meet opportunity half way. When we plan and set goals we recognize opportunities more quickly, we meet the right people and circumstances often change for us.
So get out your pen and paper now and start deciding how you want your finances to look now.
