There is one significant difference between people who succeed in life and those who struggle; their ability to set goals and achieve them. To have what you want in life, you can’t just sit back and expect it to happen.
Success means different things to different people and when it comes to setting financial goals, success is much more than having a lot of money in the bank.
A big bank balance is only a good thing if you set out amass a lot of wealth just for the sake of it. Ideally, if you want to enjoy life the aim is to have enough money on hand at the time you need to spend it.
What are goals for?
The purpose of goals is to give you a long term vision and to increase your short term motivation. Having goals focuses your mind on what you need to know and do to be successful, so that you can make the most of your life.
Goals should be precise, clear, and meaningful
Set your goals too high and you will quickly lose motivation if you don’t succeed.
Make your goals too easy and won’t be motivated either. You are much more likely to achieve your goals if you write them down and if you break them down into small steps so you can measure your progress.
Setting Financial Goals
When it comes to setting financial goals, it is hard to contemplate achieving long term goals if you find yourself unable to save or you’re burdened with short term debt. In that case, you need to set goals in two stages.
In the first stage, focus on what you can control. Plan to get rid of debt first and foremost and work out how you can put something aside as in a small savings plan.
There’s an outstanding book by Paulo Coelho called The Alchemist that is a must read at this stage in your financial development. It is the story of a young boy experiencing hardship and eventually working out what he wants and how to get it.
Taking care of what you can control is empowering and once you have your debt repayment plan and a savings plan organised, you will be in the right mindset to move forward and set longer term goals.
Go to our mindset category for more relevant articles.