Goal-Setting for Financial Victory: Getting What you Want!

What would you pay someone to tell you how to succeed in getting the things that you most desire? Well, you don’t have to pay anything; it won’t cost you more than your own time, because this article will show you how.

Financial Victory

Money is only a tool. Money is not love, it’s not security, it’s not power, it’s not generosity; it is merely a tool that we can use to get some of the things we want in life. Financial Victory is using the tool of money to get what YOU want.

Step One: You Can’t Get There if You Don’t Have a Destination!

How can you get there if you don’t know where you’re going? If you follow the steps in this article you will have a much, much greater ability to successfully reach your goals. The first step is to identify a long-term goal that is the most important to you. If you could pick only one, would it be money for retirement, a house, savings for your children’s education, long term care insurance, or what?

Next, pick a short-term goal. What do you want to accomplish with your money in the next year or two? Pay off your debts and save to avoid using credit for a vehicle, a vacation, electronics or new clothes? It’s your goal; you get to choose.

Goals are Individual: They Represent Our Personal Values

Most of us can’t have everything we want; our money is not limitless. So we have to prioritize what’s most important to us. Hummingbird recommends that you have at least one short-term and one long-term goal at all times. You can certainly have more. Some experts believe you should have goals to be achieved in 1 year, 5 years, 10 years, and a lifetime goal. Before setting your goals, make sure you have your needs (as opposed to wants) and essential goals taken care of. If not, these must come first and be your first goals! If you don’t have your needs and essential goals covered, you are risking the loss of anything else you achieve. Check Hummingbird’s spending plan and essential goals if you’re not sure.

The Importance of Communication and Agreement

Most, but not all, of us have someone that we should consult about our goals. It may be a spouse or partner; it may be a parent or child. This is a person who you want to agree with and support your financial goals. If they don’t, communicate honestly until you can work out a goal that you can both fully support.

Step Two: Make Your Goal Specific and Measurable

Saying, “this year I want to save more money” is neither specific nor measurable. To make this goal specific and measurable you would have to say, “I want to save a thousand dollars by the end of this year.” Unlike the vague goal of “saving more,” the second goal lets you measure where you are in relation to accomplishing your goal and lets you know when you have reached it! Once you have done this, write down your goal.

Step Three: Reality Check!

Before continuing, check to be sure that your goal is challenging but achievable. If your goal doesn’t require effort, you’re not aiming high enough and it’s not really a “goal”; it’s more like something you would put on a “to-do” list. (Example: This year I will return all my library books on time to avoid fines). On the other hand, if your goal requires you to do things that you can’t realistically imagine yourself doing, it’s too challenging and is likely not achievable. (Example: I will become the next Ambassador to the United Nations). You want your goal to be something you can realistically achieve, but only with some effort.

Step Four: Obstacles to Reaching Your Goals?

Brainstorm things that might cause you problems as you reach for your goal. Money leaks, specific temptations, over-spending at holidays or for social occasions, or a family member that keeps asking for loans are all examples of obstacles you might face in reaching your financial goals. If you anticipate these obstacles, you can be prepared with ways to overcome them! Once you have thought of some possible obstacles to your goal, write them down.

Step Five: Possible Solutions to Obstacles

Now use your problem-solving skills to think of ways to overcome the obstacles you’ve written down. How much your goal means to you will determine what and how much you’re willing to do to reach your goal. Are you willing to track your spending for an entire month to reach your goal? Can you think of ways to have a simpler holiday with more fellowship and thoughtfulness and less spending on gifts?

Temptations can often be managed by simply reminding yourself of your goal. After all, you chose it as being most important to you. A good way to do this is to keep a picture that reminds you of your goal with you all the time, in your wallet, posted at your workplace, in your vehicle, next to the clock, wherever. For example, if you were saving for a down payment on a house, you’d put a picture of the house everywhere. When all else fails, think of the three P’s—Prioritize, Planning and Patience. Prioritize and plan your purchases and remember that it takes patience to reach a goal... to get what you want most.

Once you’ve developed some strategies to deal with the potential obstacles to achieving your goal, write down these strategies!

REMEMBER:
People Who Write Down Their Goals are MUCH More Successful!

Step Six: Work, Review and Adjust

Now you know where you want to go and you have a written map to get there. Remember to keep yourself motivated, stay positive and “work your plan.” An important part of this is to look at your written plan, obstacles and solutions often to gauge whether you’re on the right track or need a course correction. As you work toward your goal, you will find or think of other obstacles and other solutions. Continue to add to your written goal plan. Looking at it weekly is a great way to stay on track for success. To review:

The "Secrets" to Getting What you Want

Identify a goal. Communicate and reach agreement with anyone else that should be involved.

Make the goal specific and measurable so you can gauge your progress. Write it down!

Check that your goal is challenging, but achievable with effort.

Think of problems that could interfere with you reaching your goal. These are “obstacles.” Write them down!

Think of solutions to the obstacles you have identified. Write them down!

Work your plan, review your progress weekly with your written goal plan and add to what you have written. Maintain a confident, positive attitude and keep yourself motivated with visual reminders of your goal.