Goal setting is something everyone must do. Not only for personal and work goals, but financial goals as well. A solid plan will help us get to early retirement, hefty savings and investments, and whatever else our hearts desire. This week I have been doing lots of reading from books like “The Millionaire Next Door.” While being a millionaire is not the ultimate goal for me, it helps put into perspective how much plans, goals, and determination to see them through will help us tremendously in our retirement. Follow along for tips on setting financial goals.
My Financial Goal Sheet
I have a goal sheet. It lists me why, my how, and target savings and investment allocations. It also lists my retirement date and specific goal under each category. I review the list twice a year. I delete the goals I have met, add new ones, and modify existing allocations and goals as needed. A target date for each goal is listed as well. The goals are specific to me, easy to accomplish, and have realistic time frames and targets. These are all things you need to consider when coming up with you.
Start by, determine what your goal sheet is for. Mine is a strategy for retiring early. After you have determined “what,” you need to ask yourself, “WHY.” Why do you need to meet this specific goal? My why is, “I want to work because I want to, not because I have to.” After determining your why, its time to get to work.
Breaking Down Your Goals
You need to break down all your goals next. You can list as many or as little as you want. I currently have four. They include reducing all debt, setting a solid investment strategy, land acquisition, and increasing my wealth score. After you have established your goals, its time for specifics. Under each goal, you need to list the steps you have to take to achieve the goal. Include tools you will need, steps you must take, and a target date of completion.
Many of my goals have a one-line explanation. For debts example, I only had two small debts. They included a $200 credit card bill and a $980 doctor bill. I wrote out each bill and cost and how much I would allocate towards the bill each month and date to complete the task. The biggest and most detailed portion of my plan centers on savings and investments. I list my assets, current monthly contributions, and new monthly contributions goals, etc.
The more detailed the plan. the easier it will be to follow. Start with small goals. Work towards big goals, through smaller goal task. When you complete a task, celebrate and write in a new one. Also, keep the cycle going, by refreshing and updating you plan regularly. If you keep at it, you will meet your goals before you know it.