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You know you should set money goals, but you don’t know where to start. There is too much information out there, but none of it is makes sense to you.
First of all, congratulations! You’re here, so I can only assume you want to get a better handle on your money and get your financial house in order.
Let me tell you, creating money goals is no small feat.
Setting yourself up for financial success is going to take more than luck and a good money mindset. But you got this!
There’s so much out there. That much Information can get overwhelming, so we don’t know where to start.
Setting money goals may seem like an intimidating activity.
I get it. Money can be emotional, money can be overwhelming.
But, setting goals is an important step in achieving any goal. You know what you’re aiming for, you know where you need to get to.
Stop seeking perfection
Many times the shear amount of information that is out there is excessive and overwhelming. All it does it is confuses us. We don’t know which way to go, or whether it will truly happen.
But go in with the mindset to learn and continue to be better, and you’ll succeed.
Your money life, just like other parts of your life is constantly evolving. It’s not going to be a one and done activity.
Don’t wait for the right time to set money goals
Waiting for the new year, or the next pay raise isn’t going to make setting money goals any easier.
The earlier you start, the more time you’ll have to get the knowledge you need, to do better.
Money is important, it touches so many parts of your life. And it’s difficult to distill it down to one or two things at the end.
It’s about the long game
Setting and achieving money goals is no small feat. It is a longterm game, that will take time to figure out. It’ll take time to fine tune your plan. And as you achieve certain thigns, new goals, and plans will come your way.
So grab a cup of coffee, a notebook and pen, and let’s get started!
Five steps to set your money goals
ONE: Set time aside
Be intentional, put it in your calendar, your to-list, your bullet journal, or whatever you use to stay on track! You want to make this step count. If you put the effort up front you’re also more likely to stick to your plan.
TWO: Write down your goals
Don’t overwhelm yourself by saying you want to pay down all your debt, and invest 50% of your income. Start small. This is not a plan that you have to commit to for the rest of your life.
Once the first few things work, then you’ll be able to review and tweak your plan.
Tie them to your overall vision
The best way to start with creating money goals is to look at your overall life goals.
Look at your vision board, your goals in other parts of your life.
Maybe your life goals include starting a business, buying a new home, or going back to school. All of these goals will have implications on your financial life.
Set money goals that will help you with your goals in other parts of your life!
THREE: Rank your goals and set a due date
Prioritize what’s important
Understand that your goals may be in conflict
Short-term/medium term/long term
Keep in mind that not all your goals will be achieved in a year. Maybe some goals will take three years, but other goals will just six months to cross the finish line.
FOUR: Create an action plan
Set up a schedule of tasks with due dates to help
Communicate with anyone who it might impact
If you live in a household of dual-income, you would likely have to communicate with them
FIVE: Review & Tweak as necessary
Set time aside to review your plan, whether it’s monthly or quarterly, schedule it in your calendar so you don’t lose sight of them.
At this point, you can see how well you’re tracking against the timeline you set for yourself, and tweak your plans to make sure that they are still working for you.
Maybe an emergency came up, and you weren’t able to set aside the $500 for your vacation fund. Don’t give up. Tweak your plan, and set up a new due date.
Tips to set money goals that will stick
A popular framework for goal setting is SMART Goals
SMART stands for Specific / Measurable / Attainable / Relevant / Time-Bound
Specific
Be specific with what you want.
They can be things that bring you joy, like travel, or items that fulfill your life goals, like opening a coffee shop!
I want to …
- take two vacations this year
- pay off my credit cards
- buy a house
- open a coffee shop
Measurable
How will you know you got there?
This is the importance of metrics. Yes, I’m a nerd with numbers. But I’m here to tell you that when you measure your goals, you also have reasons to celebrate your successes.
Give each goal a dollar amount, a timeline, or a metric. That way you’ll know you’ve made it to the finish line, and can actually celebrate.
It is important to measure the way you would know you have reached your goal
Achievable
Ask yourself, is it really possible?
Yes anything is possible, but you need to make sure you’re not going to be stretching yourself too thin with your goals.
Challenge yourself, but also make them something you can work towards.
If your goals are not achievable, you might just abandon your plans altogether.
Relevant
Do they align to your goals, or your life?
For example, if your goal is to invest 30% of your income, but your focus is paying credit card debt, then your goals are not aligned.
Time-bound
Have you set a due date ?
If you don’t schedule it, you might never make it!
Next Steps:
And there you have it!
You’re just five steps from setting your money goals!
Comment below if this post helped you! I’d love to hear your process of setting money goals.
Cheers,
