Making financial goals that are attainable!

What if you asked someone what were his or her financial goals and the response was to describe a dream to own a three storey house in the hills, complete with its own helipad, private heated pool and a five car garage?

Would you regard that person as having unrealistic goals? Well it depends on a number of factors, for instance are they currently employed and do they have an attainable way to achieve their new status?

How to set financial goals

Financial goals are savings, investment or spending targets you hope to achieve over a set period of time. The stage of life you’re in usually determines what type of goals you wish to achieve.

Once you’ve identified what’s important to you, you need to figure out what is achievable in the short, mid-range and long term; develop a SMART (Specific, Measurable, Achievable, Relevant and Timely) strategy and a tight budget to achieve it; start saving and constantly monitor your success.

Where do you start?

First create a realistic budget. You need to have a good idea on how much money is coming in and how much is going out, then work on the budget and use it to address your goals.

Hopefully your tough, realistic, water-tight budget will show at least a handful of leftover dollars. Whatever that amount is, have it automatically directed into a separate account designed to address the first couple of things on your list of priorities.

Monitor your progress.

Make sure that you are hitting certain benchmarks. If not, take some time to re-evaluate what went wrong. If you find then plug the leaks then you are ensured of saving your money.

Ever so often you might lose motivation. Keep a track of your goals as that will help you to continue with the process. Why not make a goal chart with short term, mid term and long term goals? That way you can tick off what you have achieved.

Some person find that looking at a well placed picture of themselves affixed to the refrigerator door, perhaps simulating that enjoyment of retirement on a secluded beach, or that mansion might make for a nice visual stimulus.

So what’s your take? How do you make your financial goals attainable? Let me hear from you!

Teri Ann Renee Paisley

Gleaner online writer

Tags: budget, financial goals, goals