Setting financial goals can feel overwhelming. It is often hard to decide where to start and what to focus on.
We're going to cover how to give you the confidence you need to set financial goals that are attainable and exciting!
Get Clear on Your Why
When it comes to any type of goal setting you have to get clear on why you want to achieve a personal goal. A good thing to do is to create a vision for yourself and your life.
A vision is a description, or detailed picture of what you want to achieve in the next five to ten years.
These can be written in paragraph form, or be lists. Some people may prefer making a vision board with images or magazine cutouts of things you want to do, be or have in your life.
There is really no right or wrong way to create your vision.
The best thing about a vision? Anything is possible! You don’t have to know how your goals will be attained, you just need to get clear on what you want to occur in your life.
For example, you may want to set a goal to be debt free, but your $10,000 in debt so this goal may feel unattainable.
The first set is to simply set the goal, then work through actionable steps that can make that particular goal a reality.
Set Clear Action Steps for each Goal
Once you have created an exciting financial vision for your future, you can now begin creating an action step to achieve each goal.
Let’s say one of your goals is to buy a house in 2025. In order to successfully achieve this goal you will need to set mini goals along the way.
Here is an example: On a conventional loan you have to put 20% down, meaning on a $200,000 home you would need to put $40,000 down. This means you have to save $8,000 over the next 5 years to reach this goal.
You would need to save roughly $700 a month over the course of a year to reach your goal of buying a home. Depending on your financial situation, you would either need to reallocate those funds from spending to a high yield savings account or figure out a way to make an addition $700.00 a month to save up.
50% is a Passing Grade when it Comes to Goal Setting
This may come to a shock for many people, but if you’re only achieving half of the goals you set for yourself you are actually doing it right!
The reason is, if you were achieving 100% of the goals you set for yourself you aren’t stretching yourself enough.
In addition, if you are achieving less than 50% of your goals, you are most likely
There is definitely a fine balance. You are on the right track if you set a goal and it makes you a little nervous!
Reward Yourself Along the Way
Sometimes when you are working towards a goal that requires savings or cutting back in other areas, it can feel a bit frustrating. After all, achieving your goals does take sacrifice and commitment.
But don’t forget to celebrate your tiny wins along the way. For instance if you attain your goal of saving $700 a month for 6 months in a row, take the time to acknowledge your hard work.
Celebrate with a girlfriend over wine or treat yourself to a mani/pedi! Mini rewards along the way will help keep you focused on the overall end goal and keep you motivated to keep up the good work.
We wish you all the luck in creating and attaining your financial goals for 2019 and beyond!