A goal is a declared result where you must put forth some level of work in order to achieve the declared result. Goals can be anything that you desire. They can be an interpretation of your dreams. For example, maybe you’ve dreamt of having a beautiful home that you imagine you and your family living in, well, buying that home can be your goal. Goals are a crucial part of wealth building because they help give us direction and motivation.
Success is hard to reach without goals. There have been many times in my life where I’ve witnessed people who worked really hard but didn’t have any defined financial goals. Many years later these people wondered why they weren’t getting ahead financially even though they were making good money at their job. They ended up squandering their money without really even noticing it. I’m sure that we can all relate to not knowing where the money goes at times, but all that changes with goal setting and planning.
After you set your goals create a plan in order to achieve your goals. When you’re setting goals for wealth building make a forecast (see April Blog post and Financial Tools link) so that you have a way to measure your financial progress. I like to use spreadsheet software like Excel. Computer spreadsheets are easy to customize and make adding the columns and rows easy. They’re also great for long term planning because they can be easily reproduced to forecast years and years into the future.
A goal and a plan are crucial parts of building wealth because they act as our roadmap to building wealth. Goals are the most useful for building wealth building when they are: clear, measurable, attainable, intimidating, inspiring, rewarding, difficult, and motivating.
The following steps can be used to help you create the financial future you’ve been dreaming of.
The 7 steps to Financial Goal Setting:
Step 1: Figure out what your dreams are.
Step 2: From your dreams identify your goals.
Step 3: Create a plan in order to achieve your goals.
Step 4: Track your progress so you know how you’re doing.
Step 5: When you reach your goals, stop and enjoy your achievement.
Step 6: Focus on your next goal on the list.
Step 7: Remember to enjoy the journey at every step!