Setting Financial Goals 2015 – 6 Sure-Fire Ways to Help You With Setting Your Financial Goals!
Do you have financial dreams? Or do you have financial goals? What’s the difference?
It has been said that while these two may sound like the same thing, they’re actually not the same. A financial dream is something you hope for; while a financial goal is something you’ve planned for and prepared for, and are committed to executing until achieved. See the difference? It is your planning – not the hoping – that turns your financial desires into your financial reality.
So, what exactly does a financial goal look like?
Essentially, a financial goal is a guide or map if you will. A well-structured goal will consist of, but is not limited to, the following:
- A clear definition of what you plan to accomplish
- A basic understanding of what resources you’ll need to make it happen
- A written time frame for which you’ll need to make it happen and,
- A simple outlook on how you plan to make your goal fit into your overall budget and life
Follow these easy steps to get going.
1. Make a List of Your Financial Goals.
Categorize them as short-term, mid-term and, long-term. Your short-term goals for example, can be achieved between 6 months and 1 year. To achieve your mid-term and long-term goals will take 1 to 3 years and 3 to ten years respectively.
2. Calculate The Cost of Each Goal.
Each goal comes with a price tag (figuratively speaking). When we commit to a goal generally there is a sacrificial cost meaning, you’re probably going to have to give up some things to realize your goal. Most goals worth achieving usually come with sacrifices. Weigh your options and be prepared to give some things up for the realization of the goals you committed to. Do your best to estimate each one.
3. Set a Date.
A goal without a deadline is not a goal. Any intention without a desired completion date is just a dream and we’ve already determined that you are not a “dreamer” but a “doer”. Come up with target dates for each goal listed and work your butt off to achieve them.
Now that we have some targeted goals, we can move into creating a plan.
4. Begin by looking at the “price tag” of each goal and how many weeks or months until your target date.
5. You can now determine how much money needs to be saved or generated each week or month for that specific financial goal by working in reverse from the completion date.
6. With this information you can now compare your goal to your current budget and make adjustments as needed.
Some final thoughts and things to keep in mind while setting your financial goals:
*Make sure your goals have some real value and meaning to you. If your goal doesn’t excite you, it will make it that much harder to achieve.
*Make your goals realistic… to you and only you. Only you know your situation and budget. Be willing to stretch yourself however, while your financial goals should stretch you as a person, it should not overwhelm you.
*Lastly, don’t throw in the towel and give up. Things will come up in life to throw you off track because that’s what life does. Don’t be so hasty to call it quits. Address the unexpected happenstance, and reset your target date and go. Aim for the feeling of satisfaction you will receive once you’ve reached the finish line!
The good thing about numbers is that they never lie… and I mean NEVER! Setting financial goals can be as easy or as difficult as YOU want them to be.