4 Tips to Help You Achieve Your Financial Goals
There are few things that can offer greater personal satisfaction than achieving a goal you've been working hard to reach. The problem is that it can be easy to lose focus, causing your goals to fall by the wayside. There are a number of reasons ...
There are few things that can offer greater personal satisfaction than achieving a goal
you've been working hard to reach.
The problem is that it can be easy to lose focus, causing your goals to fall by the wayside. There are a number of reasons why people don't wind up reaching the goals they've set for themselves. Fortunately, there are things you can do that can help increase the chance you'll reach the next financial goal you set for yourself.
• Set small milestones: Rather than thinking about your goal in one lump sum, consider breaking it down into installments. For example, if you want to save $6,000 over the next year, consider thinking instead about saving $500 every month or about $115 every week. You'll find that these goals are much more obtainable, and you'll feel like you're making significant progress towards your long-term goals. The psychological boost you'll receive from achieving these small goals can have a tremendous emotional impact and will help you stay motivated.
• Automate your goals: Pay yourself first. It's something we talk about on a regular basis, and with good reason: It works. Some people plan to save whatever is left at the end of the month. What often happens is that there is simply no money left at the end of the month that you're able to save. Having your savings automatically deducted from your paycheck into a savings or retirement account will help you avoid the temptation of spending the amount you've allocated for saving. Not only will it keep you on track to reaching your savings goals, you may also have greater peace of mind knowing that your monthly savings goal has already been taken care of when you get your next paycheck.
• Be realistic: It's absolutely okay to have big dreams for your future, but it's also important to establish legitimate goals that you have the capability to reach. Being too ambitious with your goals can set you up for failure, and failing to reach a goal can be so discouraging that you let other good habits fall by the wayside, creating a domino effect. Instead, set yourself goals that will be obtainable within your current financial situation.
• Prioritize your goals: Some of us have a seemingly infinite number of goals we'd like to accomplish, but all of us only have a limited number of resources available to actually achieve them. Write down what your goals are, create a hierarchy to see which goals are the most important, and then prioritize working toward them. This is when thinking about your values is crucial; a good understanding of your core values can help you focus on what matters the most to you.
Finally reaching the goals you've worked so hard to achieve doesn't just provide a sense of accomplishment - it can also provide lasting benefits for years to come. Follow this framework to help you reap the rewards from reaching those goals.
Bruce Helmer and Peg Webb are financial advisers at Wealth Enhancement Group and co-hosts of "Your Money" on KLKS 100.1 FM on Sunday mornings. Email Bruce and Peg at email@example.com . Securities offered through LPL Financial, member FINRA/SIPC.