Setting Goals that Empower Your Financial Future
Dreams – whether they be of winning this month’s NCAA Men’s Basketball tournament or securing the presidential nomination – cannot be achieved without first setting goals. Establishing goals is paramount to accomplishing any successful endeavor, including realizing the financial future you envision. Setting attainable personal financial goals and establishing a system of accountability are vital steps to financial security that require time and thoughtful consideration.
So many individuals go through life blindly throwing money at savings accounts, 401(k)s, and investment portfolios but you can be wildly successful by setting realistic, attainable goals. Those without plans, often fail because they don’t have clear financial purpose or direction.
Here are five key strategies consumers can use in setting successful financial goals.
- Create goals that are motivational but also realistic. Setting goals that are impractical and out-of-reach have the consequence of keeping you stuck exactly where you are.
- Plan goals for the short and the long term. Without tackling the immediate problems of debt or failure to save, you will never get a chance at realizing your long-term financial vision.
- Establish priorities. Each of your goals may be realistic on their own, but the decision needs to be made at the outset of your planning as to which are more important to you.
- Recognize the importance of time. It’s a common mistake to specify a future goal in terms of today’s dollar amount. By not specifying the right goal, you set yourself up for choosing the wrong financial strategies later in the planning process.
- Be flexible. New opportunities, unforeseen personal circumstances and volatile markets may occur, requiring you to reset your financial destination, in terms of where you want to arrive and by when.
Put your goals in writing. It’s been established by research studies time and time again that when you have written goals, as part of a written financial plan, your chances of financial success go up significantly.
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