Setting Financial Goals
We so struggle in this area! Days come, then weeks and years, and so many of us don't have defined goals. We may have financial goals or a development plan at work, but in our personal lives it's just a hard practice to set up and follow. Evidence clearly shows that those with written goals have higher levels of achievement, but so few of us do it.
I'm not pointing fingers at anyone; it's hard for us all.
But let's take a moment to review and get encouraged. Would you commit by the time you finish this article to spend some time on goal setting?
Why should we have precise, documented goals?
1. General goals lack clarify. "I'll try to save more" or I'll get out of debt" - these goals are not specific enough to measure progress. Write down the goals, and make them specific. Financial goals should have specific dollar amounts and timelines with dates.
2. Written goals can be broken down into manageable chunks. A big goal may appear unattainable, but divided into smaller pieces can be achievable. Perhaps instead of listing all your credit card debt, you divide it by 12 months and try to reach that goal. If your goals are divided into smaller pieces, you will get satisfaction from attaining each segment bit by bit.
3. Monitoring is easier when your goals are clear and documented. If your friend asked you how much weight you lost on your diet, you would reply in pounds or clothing size. In the same way, quantifiable goals can be measured more easily.
4. Fixed financial goals are a motivator. You could put a bar chart on the refrigerator or on the bathroom mirror and tick off the milestones.
5. If you have written specific goals, you can make better decisions. Can you afford that vacation or new sofa? That may depend on how you are progressing step by step toward your goal.
Now is the time for action. If you do not have any written financial goals, would you take ten minutes and jot down some ideas? You may need a buddy to help; most people do. But any time you spend will be well worth it because written goals enhance our success down the road.
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