We all love to have financial goals, but how many times have you set those goals and then not met them? A few, I’m guessing. Let’s come up with a plan to help you not only set your goals, but also meet them.
Here are the four ways to keep on track with your financial goals.
#1 Set S.M.A.R.T goals
It’s easy to come up with a goal but if it isn’t specific, measurable, attainable, and realistic then your chances of actually meeting it, lessen. Here is a great way to think about your goal:
Specific – Save $1M for a second home in Florida by 2042
Measurable – Need to save an additional $2-4k per month
Aligned – Partner and family bought into the savings plan
Realistic – Can set aside $4k per month on current salary
Timeline – Have accumulated $1M in an investment account by 2042
So, check your goals to see if they fit into the S.M.A.R.T framework and if they aren’t then set them up to be.
#2 Track how you are meeting the ‘Measurable’ part of your goal
The best part about setting up a SMART goal is that you have something that is measurable. If we use our example, in order to meet our goal we need to save an additional $2-4k per month.
How’s that going? Are you able to do that, or are you falling short? If you are falling short what needs to change in order to be on track with achieving that? Is everyone else in the family bought into your goal? That’s the aligned piece.
#3 Check if your goal is still ‘Realistic’?
Maybe your circumstances have changed, since you originally set your financial goal. It may be possible that you lost your job, or changed jobs so your financial situation has shifted. That’s not such a big deal, simply shift your goal.
For example, you might have gained a promotion and with that gained a nice big pay rise. Fantastic. That could mean that whereas before you had $2-4k spare each month, now you have more. That in the long term would mean that if nothing else changes, you have the opportunity to make your financial goal a reality sooner.
On the flip side, perhaps circumstances changed and you no longer earn as much as you did 12 months ago. So be realistic and adjust your SMART goal to meet your new circumstances. There is no harm in resetting things. It is actually a good thing to do.
#4 Have fun!
Don’t get so caught up trying to meet your financial goals that you forget to have fun. Enjoying what you do and doing it in a way that makes you happy, will mean you are more likely to be successful in meeting your financial goals, than if you make it a chore.
Enjoy the journey, and don’t hesitate to reach out to us to help you through this process. We’re here for you.