Have you set your goals for the year? In my January vlog I talk about achieving your financial goals in 2013 by establishing new habits. Don’t forget that we also have mexican viagra a Review and Planning Officer to help with goal setting. If you’re on top of your debts and bills and starting to wonder about future goals, the Review and Planning Officer can help you.
Over the last few weeks, I’ve been writing about goal setting and how it applies to personal finance. Here’s a link to my articles on the importance of goal setting and a step-by-step guide to goal setting for money management.
So what are the keys to staying on target? Why do some people achieve so much with so little, while others never seem to get ahead?
Here are my top 20 tips to goal achievement. These principles have worked for me when it comes to money, work and life in general. I hope they work for you, too. They are in no particular order.
1. Give yourself permission to be excited and passionate about your life and finances.
2. Keep your goals somewhere you can see them regularly: on the fridge, behind the toilet door, in your office, taped to your bedside table…
3. Create a symbol or talisman to represent your goals, and keep it close. This could be something as simple as a red dot stuck inside your wallet.
4. If you’re frightened of failing, acknowledge the fear and do it anyway.
5. Keep your goals to yourself if you think others would not respect or understand them.
6. Visualise the outcome of your goals regularly. Feels good, doesn’t it?
7. Take one step at a time. Break big goals into a series of smaller ones. One MyBudget client says she writes her big goals in the centre of a paper flower and the mini-goals on petals around the outside. Every time she completes a milestone, she gets to remove a petal!
8. Stay positive. If you find yourself focusing on negative thoughts, spend 10 minutes writing down all the reasons you can achieve your goals.
9. Do something goal-minded viagra generic every day. (Bring your lunch from home, buy nothing new, walk instead of drive…)
10. Focus on the behaviours and actions (practical things) that will move you towards your goals.
11. Embrace change and learn from your mistakes.
12. Graciously accept assistance and advice from others if you think it could be helpful.
13. Graciously decline assistance and advice from others if you think it could be unhelpful.
14. Keep your goals simple. If they feel complicated, difficult or boring, redefine them.
15. Don’t let your goals become a monster. You control them; they don’t control you.
16. Balance your financial goals with other goals in life.
17. Adopt a warrior attitude. Fiercely defend your goals from the enemies of temptation and distraction.
18. Flow like a river. If an obstacle blocks your path, go around it, over it, under it.
19. Keep going. If you miss a milestone this week/month/year and stay focused, you’ll get it next time.
20. Call MyBudget and speak with our customer service team. We’re here to help!
The aim is that by the end of this five-step process, your goals (combined with your MyBudget budget) will represent a money map for the year(s) ahead.
Step 1: Visualise your goals
What does your ideal life look like? Visualise where you’d like your money to take you and start jotting down some ideas. (You may have already completed this step last week.)
Does it include being debt-free? Perhaps there are places you’d like to visit, concerts you’d like to attend, sports or hobbies you’d like to be involved in. Maybe you see yourself driving a new car or a boat or renovating your home. You might want to send your kids to a different school or take them on a holiday.
Think big and small. Your goals do not have to be grand or complicated to be worthwhile. In fact, it’s important to have a mix of big and small goals.
This is your life and your financial goals are yours for the choosing!
Step 2: Get practical about your goals
I. Avoid goals that are unattainable
As you review your list, you may notice that some of your goals seem easier to achieve than others. There’s a name for goals that are nearly impossible to achieve: stretch targets. Stretch targets can be useful for changing unwanted behaviours or negative thought patterns, but having too many of them in your goal list can be demotivating. It’s better to have goals that are realistic and achievable.
II. Avoid goals that are too general
Goals need to be specific and actionable. For example, if your goal is to be debt-free, specify exactly which debts you’re going to reduce this year and by how much. If your goal is to have savings, specify how much you’re going to save and how often.
III. Avoid goals that are outside of your control
A goal becomes shaky if it relies on factors outside of your control—eg. getting a pay rise, a new job, a big bonus cheque, winning the lottery. Focus only on things you can control. For example, if your goal is to find a higher paying job, focus instead on the behaviours required to get a job. You could rewrite your resume, send it to 20 top companies and follow-up with phone calls.
IV. Prioritise your goals in order of importance.
Ask yourself what goals can I buy soft viagra start working towards now? It would be nice to be able to achieve all of your goals simultaneously, but life isn’t like that. The reality is that you have to attack your goals in order of priority.
V. Break big goals into smaller, more manageable goals.
For example, if your goal is to save a $70,000 house deposit over the next seven years, break it into 28 three-month segments of $2,500. Smaller goals are easier to measure and keep on track — and you get to pat yourself on the back more often!
Step 3: Write down your S.M.A.R.T. goals
What is a SMART goal? A SMART goal is one that is specific, measurable, attainable, relevant and time-bound. The idea behind a SMART goal is that it should capture the behaviours and actions that will lead to the end point you desire.
S = Specific (What do I want to accomplish? Why? When? Who with?)
M = Measurable (How much will it cost? What will the goal look like when it’s complete?)
A = Attainable (Is this goal achievable/affordable?)
R = Relevant (Is this what I should be focusing on?)
T = Time-bound (How long will it take? What is the timeframe and target date?)
Goal: To have savings in the bank.
SMART goal: I am saving $100 from each pay for my emergency fund. By the end of 2013, I will have $2,400 in my emergency sub account.
Goal: To cut back my socialising after the New Year.
SMART goal: For January and February: I am taking my lunch to work three days a week; budgeting $80 a week for going out which I will pay myself in cash every Friday (when it’s gone it’s gone!); going to after-work drinks only once a month; taking my credit card out of my wallet and using only cash.
Goal: To save $70,000 for a home loan deposit in the next seven years.
SMART goal: I am saving $420 per pay into my house deposit sub account so that within seven years (2121) I will have $70,000 to use as a loan deposit. 2013 milestones: $2,500 by April; $5,000 by July; $7,500 by October; $10,000 by Dec 31.
How many goals?
The number of goals you set yourself is up to you. Some people will only write down their big goals, others will prefer to write down every little goal that comes to mind. Either approach is great. The most important thing is to not let the goal setting process become overwhelming or so difficult that you give up.
Start with little victories and watch them add up.
If you’ve been discouraged about goal setting in the past, keep it simple. Pick just one small goal to start with — perhaps taking your lunch to work for a week.
Financial fitness is a lot like physical fitness. If it were your aim to run a marathon, your first training session would not involve a 40km run. The same principle applies to your money. Little, regular steps will quickly add up to a marathon distance.
Remember, you can always add more goals to your list or tweak the ones you’ve got.
Step 4: Review your goals often
Review your goals regularly. Are you on track? Do you need to tweak your plan? Are you progressing towards your goals faster than you expected?
It’s okay to make adjustments. Your plan needs to be flexible to accommodate life’s changes. You might get a pay rise that boosts your budget and shortens your timeframes. On the other hand, your car might need costly repairs that eat into your savings. The plan may change, but the goal remains the same!
Step 5: Celebrate your victories
It’s mandatory to celebrate every time you hit a goal or a mini-milestone. That doesn’t mean blowing your budget on champagne and flowers, but it does mean patting yourself on the back. You deserve to feel happy, motivated and excited about your achievements.
Sticking to the plan
Next week, I’ll write about making your goals stick — tips for staying on track, keeping motivated and seeing your goals through to completion.
In the meantime, it will help you to stay focused if you think about your goals often. Keep your goals list somewhere you can read them once a day.
Goal setting support for MyBudget clients—contact the Review & Planning Officer
As you get on top of your bills and debts, you’ll find that your mind starts turning towards other financial goals. What will you do with the extra funds as your debts are paid off? Save for a house? A holiday? Pay down other loans? Top up your super? Enrol in a training course?
If you’d like help reassessing your financial goals, contact MyBudget’s customer service team and ask to speak with the Review & Planning Officer.
For many people, money management feels like stumbling through a dark forest. They find themselves navigating without a map in unfamiliar territory. Part of the problem is that most people don’t have a clear destination in mind. With no specific purpose they might wander for years, covering a lot of ground but never really getting ahead. It’s a fact that only a small portion of the population live on a budget.
MyBudget clients know that budgeting cuts a clearer path through the money jungle. With a budget in place, you know where you’re heading and how cheapest cialis online you’re going to get there.
But even MyBudget clients can sometimes get distracted, especially when they find that their debts are being paid off more quickly than they expected. After years of struggling to make ends meet, they suddenly have savings and surplus funds to play with. What comes next? An investment property? A private school for the kids? Topping up super? An overseas holiday?
The solution is goal setting
Goal setting is a vital component to success in life as much as in personal finance. The statesman Henry Kissinger once said, “If you don’t know where you are going, every road will get you nowhere.” Managing your money without specific goals is like going on a road trip without a destination. There’s a good chance that your route will be pitted with detours and back roads.
The benefits of goal setting
Goals provide focus. You move towards the things you focus on. Have you ever ridden a bicycle through an obstacle course? The surest way to collide with the witches hats is to focus on them. On the other hand, if you keep your head up and eyes focused on a point in the distance, you’ll find that you weave through the hats quite effortlessly. The same principle applies to your finances: you can let your focus wander or you can set your sights on a target.
Goals provide a map. The more specific a goal is, the more powerful it is. A goal should not only describe the endpoint, it should also detail how you will get there. Perhaps it’s your goal to buy a new car. That’s a great start, now get specific. What make and model is the car? How much does it cost? When will you buy the car? How much do you need to save from each pay packet?
That’s not to say that your plan can’t be flexible. Your old car may break down and need costly repairs or your best friend may invite you to their wedding in Fiji. That’s ok — plans can be adjusted to move with life. The plan may change, but the goal remains the same!
Goals keep you motivated. Problems, challenges and distractions are inevitable, but they’re much easier to overcome when you have a goal to focus on. Sacrifices feel less painful, temptations are less attractive, and obstacles shrink in the face of focus and determination.
Goals turn ideas into action. When you commit to a goal and decide on a course of action to achieve it, it’s like hoisting a sail into the wind. You’ll be surprised by how quickly you start achieving your goals once you get set your mind to it.
Let’s get started…
Visualisation exercise: What does your ideal life look like? Visualise where you’d like your money to take you and start jotting down some notes.
Does it include being debt-free? Perhaps there are places you’d like to visit, concerts you’d like to attend, sports or hobbies you’d like to be involved in. Maybe you see yourself owning a car, or a boat or renovating your home. You might want to send your kids to a different school or take them on a holiday.
Think big and small. Your goals do not have to be grand or complicated to be worthwhile. In fact, it’s important to have a mix of big and small goals.
This is your life and your financial destinations are yours for the choosing!
Start thinking about where you’d like your money to take you and next week we’ll get into the nitty-gritty with a step-by-step guide to goal setting.
In my December vlog I talk about reflecting on your achievements in 2012 and setting your sights towards new goals in 2013. Even if you’ve only recently joined MyBudget, that’s a huge buy cheap cialis online achievement in itself. Deciding to take control of your money is an excellent accomplishment.
What will you do with the extra funds as your debts are paid off?
Save for a house? A holiday? Pay down other loans? Top up your super? Enrol in a training course?
This important question is the reason we’ve created a new staff position at MyBudget: Review & Planning Officer. The Review & Planning Officer’s role is to monitor final payments as clients pay off their debts and help them to reassess their financial goals for the future.
Why is financial goal setting important?
Goal setting is a vital key to success in budgeting, as much as it is to life in general. You may have heard it said that the shortest path between two objects is a straight line. Yet when it comes to managing money, many people take the long way and only a few reach their preferred destination.
Part of the problem is that most people don’t have a clear destination in mind. Their financial goals are positive, but vague: To get out of debt, to save money, to cut back on expenses, to live comfortably.
Specific financial goals are more effective
When goals are specific, however, it’s much easier to create a plan. Your budget becomes a roadmap that plots exactly how you intend to get to your destination.
A specific goal outlines your purpose, details and timeframe—eg. “I will save $250 a month from January to December 2012 so that by the end of the year I will have $3,000 in savings to pay for my February 2013 holiday in Fiji.”
Goals provide long-term vision and short-term motivation. Sacrifices become bearable—even enjoyable!—when we have a goal to look forward to.
What are your financial goals for 2012?
Try setting small goals to start with. It may be as simple as saving to go to a concert. If the concert is in three months’ time and the ticket will cost $60, you’ll need to save $20 a month. Perhaps you’ll need to cut back on a few expenses, but obstacles are much easier to overcome when there’s a reward at the end.
It’s also important that your goals are realistic and that you have control over the outcome. Setting a goal to win the lottery, for example, is unfortunately not very realistic and not within your control. But saving for a holiday—or whatever else you have in mind—might be.
It’s your life, your money and your goals!
Contact the Review & Planning Officer
When you’re ready to reassess your financial goals, contact Customer Service and ask to speak with the Review & Planning Officer. We’re always here to help!
As 2011 draws to a close, I want to congratulate each and every MyBudget client for swimming against the debt current. The fallout from the world debt crisis will continue next year, but you are already taking control of your finances.
Reflect on your achievements over the past 12 months. Even if you’ve only just joined MyBudget, taking that first step is a huge accomplishment. Give yourself the praise you deserve.
As we approach 2012, think of your budget as a roadmap and ask yourself where you would like it to take you. Perhaps debt reduction is still your priority. But as you reduce your debt you may find that your financial priorities change.
This is the time to think about those priorities and to set your goals for the New Year. Where do you want your money to take you in 2012 and beyond? Whether they are big or small, take some time over the coming days to write down your financial goals.
If you would like help with goal setting, contact our new Review & Planning Officer. Review & Planning is just one extra service we were proud to introduce in 2011 and we promise to continue extending our support services throughout 2012.
From my family to yours, I wish you prosperity, happiness and riches beyond money for the coming year!