While we all love to set goals, sometimes, setting goals and achieving them is easier said than done. Ask anyone who has tried dieting but struggled to keep at it.
The same applies to setting financial goals. It is easy for people to fall off track, especially due to the many distractions life throws at them like owning that fancy car or going on that overseas vacation.
Other times, we just lose motivation or merely get stuck in a rut. To improve your chances of achieving those financial goals, here are 13 tips to help you develop more achievable financial goals.
One mistake people make when setting financial goals are being overly ambitious. As a result, they only set themselves up for failure before they even start. Make sure to set realistic financial goals that are doable to give yourself the best shot at success.
Your goals should be clear and not just hazy statements like I want to lose weight, or I want to be rich in 5 years. A clear goal is something like, I want to save $10,000 in 2 years, or I want to lose 15 pounds in 6 months. Clear goals are much more effective and achievable.
Since you may not be able to achieve all your goals at once, start working on them one by one starting with the top priorities. Outline all your goals, see which ones are vital to you and then rank them from the most important ones going down.
Your financial goals should be important and fulfilling to you and not meet someone else’s dream. You need to set goals that really mean something to you. Otherwise, you might get demotivated.
Set realistic timeframes
A whole year is a long time to commit to a goal. So, break your goals down into shorter more achievable goals. This will help keep you motivated.
Formulate a budget
Most experts agree that budgeting comes first when setting financial goals as it enables you to get a clear understanding of the amount of money you have and where it is going each month. As a result, you will be in a better position to manage it better and stay on track.
Setting automatic direct debits from your current account into a savings account or managed fund before you get a hold of it and spend it is another great way to keep you on course.
Do not be too rigid
Just like a diet that is too strict is certain to be broken, so is a financial goal that does not allow you to splurge occasionally. Remember, life is too short not to enjoy and spoil yourself a little.
Life is full of the unexpected. So create goals that can change according to circumstances.
Review your progress
Keep re-examining both your goals and progress towards achieving them regularly. Congratulate yourself whenever you reach a milestone or meet a goal.
Be held accountable
Look for a family member, friend or even a financial planner to act as your accountability coach for you to report back on your progress. This will help keep you motivated to reach your goals.
Get back up
If for some reason you find yourself going off track, do not despair or give it all up. Instead, learn from your mistakes and work your way back on the horse.
Finally, consider getting professional help from a Certified Financial Planner as The Farm Protectors. These professionals are highly trained to help people work out their financial goals. They will educate you on the best ways to achieve them and are experienced in assisting customers to stay on track.