Practical Strategies to Set and Achieve Your Money Goals

“The secret of getting ahead is getting started. The secret to getting started is breaking your complex overwhelming tasks into small manageable tasks and then starting on the first one.” - Mark Twain

Introduction:

In our previous article, we started the journey to “Set Powerful Money Goals”. We drew inspiration from two extraordinary women, Sara Blakely and Sheryl Sandberg. We got the basics down – what money goals are and why they're a big deal. Now you're probably thinking, "Alright, I'm all in for setting money goals, but how do I actually do it?" No worries, we've got you! And, if you need a quick refresher on 'why' setting powerful money goals is important,  just hop back to our previous article, “Set Powerful Money Goals”.

Now, let's get to how to actually create these powerful strategies. Let’s learn how to stay dedicated, how to break those giant dreams into bite-sized pieces, and how to avoid common mess ups. Plus, we'll tackle the big one: sticking to your goals even on those 'meh' days. Get ready, because we're about to make goal-setting not just effective, but totally doable. Let's get into it!

Crafting Concordant Goals

When it comes to setting goals, especially money ones, it all starts with being honest with yourself. It's about peeling back the layers to discover what genuinely matters to you. Why do money goals matter in your life? This introspection is crucial because goals do more than just set a target; they help prioritize your life, giving your brain both direction and supervision. Think of it as setting your internal GPS – you need to know your current location to effectively navigate to your destination.

Aligning Your True Self with Your Money 

Creating concordant goals is about aligning your personal values with your financial situation. It's like finding that perfect pair of shoes – the ones that are not just comfortable and stylish but also reflect who you are. The process begins by asking the hard questions: "What are my core values?" "What brings me fulfillment?" Maybe it's the security of owning a home, the challenge of starting a business, or the joy of exploring new places.

Consider this example from my life. A friend of mine drives a brand-new Lexus LX600F, a car worth over $100,000. I could set a goal to buy the same car by the end of the year, influenced by how much she loves her car. But here's the catch – cars don't really matter to me. I don't get a thrill from driving a luxury car or fantasizing about owning one. Sure, it would be great if such a car just appeared in my driveway, but I don't want to do the work to get it. More importantly, I'm not willing to make the trade-offs required at this stage in my life.

Buying this car wouldn't be like receiving an Amazon package at my door; it would require significant financial commitment and sacrifice. If I did buy it, I'd constantly be thinking about all the other things I could be doing with that money, like investing towards financial freedom or enjoying memorable family trips. Yes, I want a reliable, decent car, but I wouldn’t be motivated to work for a luxury car because, in my heart, it just doesn't matter.

This example illustrates a fundamental truth: you won’t be motivated to achieve goals that don't resonate with you personally. To set goals that ignite your passion and drive, they must be deeply personal and meaningful. They should be in touch with what you truly value and want in life. That way, you're not just willing to do the work to achieve them; you're personally invested in that journey because it's intrinsically tied to who you are and what you genuinely care about.

Staying Commitment to Your Goals

Committing to your financial goals is like signing up for a marathon. It’s a long, enduring race where maintaining motivation is crucial. But how exactly do you keep that spark of commitment alive? The first step is understanding the 'why' behind your goal. Why is this change important to you? What drives you to want this change, and why now? 

For instance, one of my personal goals this year is to really understand my spending habits. In the past, I had a tight spending plan, monitoring it each month. Over time, I’ve lost touch with this practice. I’m not a big spender, and I don't struggle financially at the end of the month, but I’ve stopped tracking my expenses. This unconscious spending has led to unchecked Amazon purchases whenever something catches my fancy. My goal now is to track my spending and understand where my money goes. Why? Because I’ve realized I’m probably wasting money on things like monthly subscriptions and impulse buys, which detracts from spending on things I genuinely care about, including savings and investments. As I get older, it becomes increasingly important to be on top of my finances, to ensure I can retire comfortably. This realization hit home after a significant business setback last year, making it clear that now is the time to reassess my money habits.

The second step in maintaining commitment is figuring out the 'how'. What skills do I need to develop? What’s the specific plan? For me, it involves exploring different approaches to spending plans, discovering budgeting apps, reading books on conscious spending, and setting a goal to establish my own spending plan by the end of next month. I also plan to institute a monthly 'money date' to track and review my finances.

Answering both the 'why' and 'how' is crucial for making this change stick. Interestingly, this process engages different parts of the brain. The 'how' involves the planning aspects of the brain, like the prefrontal cortex. The 'why' taps into the dopamine reward system, providing the motivation and satisfaction in achieving these goals. 

In addition to these introspective strategies, visual reminders can also play a significant role in staying on track. Whether it’s a picture of your dream house on the fridge or a savings tracker on your phone, keeping your goals in sight can help ensure that your mind stays focused on them. Consistency is key – align your daily actions with your long-term objectives. Imagine your goal as a destination, and your consistent actions as the steps that get you there."

Avoiding Common Goal-Setting Mistakes

When it comes to setting financial goals, it's easy to fall into a few common traps that can derail even the best intentions. Let's explore these pitfalls and how to avoid them.

1. Losing Sight of the 'Why: A common mistake is focusing solely on the 'how' and forgetting about the 'why'. For instance, you might feel pressured to achieve something and end up giving up, reinforcing the belief that you don’t keep promises to yourself. This starts a downward spiral. Remember, your 'why' is the driving force behind your commitment. Without it, your inner rebel might take over, pushing back against your goals. Treat your goal like an experiment, focusing on how achieving it could change your life.

2. Setting Too Many Goals: It's tempting to try and change everything at once – save $10,000, make a million dollars, change jobs, start a business, write a book, learn Spanish – all in one go. But this is like punching yourself in the face. Focus on 1-3 goals at a time, choosing ones that not only improve your life but also boost your self-esteem and confidence. Too many goals leads to overwhelm and you end up ditching all of them. 

3. Goals That Are Too Hard or Too Easy: Balance is key. Don't set goals that are so ambitious they're unattainable, but also avoid ones that don’t challenge you. They need to be just right. For example, with my goal of having a better relationship with money, I resisted the idea of an elaborate, time-consuming monthly money date. Instead, I committed to a more manageable 30 minutes each month to review one aspect of my finances. This feels achievable yet ambitious, providing a significant commitment without overwhelming me.

4. Vague Goals: Goals like 'having a better relationship with money' are too general. You need to define what success looks like. For me, success means spending 30 minutes each month on a money date, delving into some aspect of my finances. It’s specific and measurable.

5.Using a Range for Your Goal: Instead of a fixed target, consider setting a range. For instance, I’ll spend 20-40 minutes each month on my money date. This approach feels more flexible and doable, making the goal more appealing and less daunting.

By avoiding these common mistakes, you can set financial goals that are clear, achievable, and aligned with your personal values and aspirations. Remember, goal setting is not just about reaching a destination; it's about the journey and the personal growth that comes with it.

Conclusion: Crafting a Path to Financial Success

As we wrap up, let's recap. Creating concordant goals is the foundation. This alignment ensures that your goals resonate with you, making them more meaningful and attainable. You need to stay committed to your goals by knowing your  'why' AND  the 'how'. Lastly, learn how to avoid common goal-setting mistakes. 

Looking Ahead: Building Your Tactics And Habits

In our next article, we will delve deeper into creating tactics and habits for achieving your money goals. This roadmap will include topics like earning, spending, saving, and investing. We’ll explore how to break down your big goals into manageable steps and create sustainable habits that lead to success.

Keep working on your goals and taking the steps to transform your money dreams into reality.

Legal Disclaimer: This content is not financial advice and is for informational purposes only. Always consult with a qualified financial professional before making any financial decisions.