Mar 15th, 2008
Goal Setting - How to set the RIGHT kind of goals
I love setting goals. I have set all sorts of goals in my life, as I am sure you have too. I am talking about reasonable goals too…not “I am going to become a gigantic movie star, bodybuilder, and then become a governor of California and eventually run for president” kind of goals. Its simply not possible, unless you are Austrian and built like a wall. I am talking about “I am going to get in better shape.” or “I am going to save some extra money.” kind of goals.
The problem Ive had with goals is that I have not made them specific enough. This is a problem a lot of people have and it is the #1 reason that you do not achieve what you want to achieve. Goals have to be both realistic and trackable. If something isn’t tangible and trackable, you will not see any progress, and probably give up.
Example of a badly set goal:
“Im going to get ripped.”
Probably not.
Example of a well set goal:
“I am going to lose 5 lbs this month by eating chicken for dinner instead of frozen pizzas and by running at least 3 times a week.”
So lets apply this to personal finance. Lets say you want to start putting away money into a savings account.
Bad:
“I am going to start saving some money.”
Good:
“I am going to start transferring $25 per paycheck into my savings account.”
This is solid and accomplishable and you can track yourself. If you transfer the money into the account, you know you have succeeded.
- One Comment
- Motivation
This is actually a principle that we’ve had to apply to ourselves with finances, diet, etc. as well. Having quantifiable goals is the basis of many successful business transactions, and I finally brought that practice home before we managed to see any kind of progress.
It’s amazing how stupid I was to be so successful using the same approach at work for years…yet just recently started doing the same at home. Good observation.