Financial Goals

“One of the big questions to resolve is whether you have financial dreams or financial goals. While they may sound like the same thing, they’re not. A financial dream is something you hope for; a financial goal is something you’ve planned for. And it’s the planning not the hoping that makes things happen.“

Christmas season is fast approaching and all preparations are in their highest volume. However it’s important to note that as Christmas season is approaching, so also is a new year approaching. A new year comes with a lot of planning and you don’t have to wait till the new year before you start your planning.

This year may not have met up with what you planned, however, don’t be discouraged, find a way to catch up in the coming year, learn from the steps you’ve taken and take a better approach. Here are some tips to help you plan towards achievable goals. I’m sure you’ve most probably heard of the S.M.A.R.T approach but let me shed more light on it. Your financial goals should be:

• Specific- It is very important that you know what you want and you are specific about it. Your financial goals should also have monetary values attached to them. For example, you can’t just say I want have a higher net cash flow in this year. That’s not specific. You have to express it in monetary values.
• Measurable- Your goals should be such that you should be able to measure the progress over time. Once you can have a specific goal with a time frame, you can easily know whether you are close to your goals or not.
• Achievable- You know your capability. We don’t live in a world of fantasy. You have to ensure that your goals are realistic and achievable. To ensure that your goals are achievable, you have to determine the resources you’ll need to make these goals happen and also the steps you’ll need to take.
• Relevant- Your goals should be meaningful and relevant to your needs and lifestyle. Know exactly why you are setting that goal and ascertain its relevance in your life. I once heard of someone who made some financial decisions just for personal exhibitionism and as such neglected more important things.
• Timely- Very important. Your goals should have a time frame. When do you want to achieve these goals. Each goal should have individual time frame. The timing of the goals should also be realistic.

Finally, note these:

• The journey may not be smooth. Don’t be discouraged along the line. Instead, take a new approach, set a new date or find a way to meet up with it.
• Prioritize your goals so that even if you don’t achieve all your goals, you would have achieved the most important ones.
• Plans do not exist in your brain or mind; they exist on paper. Therefore, write them out and keep them close to you to keep you motivated all the way.

We believe in you!

To your financial independence and freedom