Financial Goals

Goals Require Action

Just like a budget requires action.
You can create goals or a budget but unless you actually take steps toward reaching your goals or move money to various accounts, you will make little headway.

So how do we break down a goal to make it achievable?
How do we create a budget that isn’t overwhelming?
How do we move forward?

Ultimately it comes down to creating SMART goals and then writing out the steps necessary to reaching those goals.
Breaking a goal down into manageable steps is key to success.  When I break down a goal I try to come up with 3 KEY actions I can do to move forward toward that goal.  I may not actually achieve the goal by the end of those 3 steps if it’s a huge goal, but I will be much closer to where I want to be.

An example of a SMART goal is:

Build up a 3 month emergency savings fun over the next 12 months totaling $10K.

So let’s break this down into manageable steps.
1. Figure out how much out of each paycheck needs to go into savings.  Based on this, $193/week needs to go into a savings account.
2. Open a savings account at a local credit union or bank.
3. Review budget and see if this is doable and manageable.  See if there’s an area that needs to be cut back or reworked to make this doable.

Once you’ve taken the time to do these first 3 steps, then go on to the next steps until the goal is reached.

It can be hard to break down a goal into manageable steps if you don’t know where to start, so I always recommend starting with the most obvious first step. With a financial goal you have to have a dollar amount involved.  So break down that dollar amount into a manageable number.  Set up a time table for when you want to achieve the goal and divide the dollar amount you need by the number of weeks, months or years you plan on spending reaching your goal.

Always make sure you write your goals down so you know what you’re working toward.  It makes breaking down your goals into manageable steps, much easier and attainable.  Most people who write down their goals are much more likely to succeed.