What are financial goals?
Financial goals are a target you hope to achieve driven by a specific futuristic need based around money. In which you aim to reach and complete in the near, or long-term future in a timely-based manner. In most cases people will set financials goals they wish to achieve by means of writing those goals down and making lists, creating excel spreadsheets, using available apps or available bookkeeping software or seeking financial advice from a financial planner
Why setting goals is important?
Setting goals is very important as it gives you drive and passion of what you hope to achieve in the future and you know exactly what you want to achieve and when you hope to achieve those set goals. If you have no goals you seem to be endlessly going in all directions with no purpose. All individuals need a purpose something that drives them forward, keeps them happy keeps their hopes up that they are getting somewhere and they are moving forward and evolving. It is such an exciting moment to look back over your list of goals that you set yourself to achieve and you have actually achieved them, there is nothing more empowering to your ego and soul, and it makes you feel proud making you drive more and create more goals to achieve, and you feel in control of your life and we all need to feel that.
What are SMART financial goals?
When setting goals, we need them to be specific, measurable, attainable, relevant and time bound. The reason for all of these important factors is because we can sometimes put over expectations on ourselves to be perfect and no one is and it gives you direction and focus.There is a goal setting framework that has been created that everyone follows that is the “SMART” goals framework.
Goals have to be “specific” so you need to specify what goal or goals it is you want and need. List them and right them down but be specific about it put them out there to the universe exactly what you want and then focus your energy on that goal and then everything you do will be directed towards that goal or goals you have specified that you want and need. But don’t just say “buy car” what type do you want? when do you want it? how much do you want to spend? What colour? Etc. be as specific as you can.
A goal needs to be “measurable” so for instance if you want to get in shape then you need to set tasks under your goals such as “ I will work out three days per week” and then make sure you do those tasks and measure if you have or have not done that weekly task. So, you can see if you are on track or not. A goal without a measurable outcome is like a game without a score board who is winning and are you winning? We all like to win and not knowing is frustrating, so set tasks for your goals and track them.
A goal needs to be “attainable” Rome wasn’t built over night so do not say “I will make a billion dollars in one year” good if you can but this is seriously hard to achieve realistically. Maybe eventually you can and of course we all need to dream big and aim for the stars we may just land on the moon. However, we will still need to be grounded and not overdo ourselves with too high expectations putting extreme pressure on ourselves to perform. You want to comfortably achieve your goals too, stress is such a big killer and we all need to be balanced so rest, play and work as well as mind, body soul, need to all be in check.
Goals need to also be “Relevant” goals are important to set but is the goal worthwhile? Is the goal consistent with your other goals you have established and will meeting this goal meet your needs and be rewarding? So, ask yourself is the goal relevant to your overall vision.
Goals need to be “Time Bound” it is essential you have a timeframe and a date of when the goal will be achieved. You will eventually become unmotivated if you have set no end date. Goals can be set in timeframe increments so as you achieve them reward yourself too. You must celebrate your victories.
I have listed below just some examples of the goals that people usually set themselves: –
buy home· financial independence· marriage (save for wedding). tax savings· retirement planning· children’s education· buy a car·Save for a holiday
Personal financial goals·
health goals·relationship goals·start a hobby·career goals·social goals
Financial goal planning, setting and managing how I do that?
So how do you go about the whole process of financial goal setting, planning and achieving? Well firstly you will list your financial goals, secondly you will do a budget up a forecast and then track actual spending (using excel, or the many available online apps in google play apple store, or even there is online templates to use by googling financial goal planning templates etc. or a free bookkeeping software called wave (there are many others too) and then you will check in and keep tabs on that budget that you are sticking to your plans and tasks you have set for yourself. Or alternatively you can use a financial planner they can make wonders happen. I have seen it first hand and heard numerous people speak about how seeking professional financial advice had help them a lot. So now you have been informed on how important having financial goals and even personal goals can be. Get yourself together and start now managing your finances and take back control of your life.
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