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Why Money Needs Goals

When it comes to making the most of your money, setting goals may be one of the most effective things you can do to set yourself up for financial success (however you define it). When you have goals, you can map out a path, giving your money direction and purpose. Goals allow us (and your money) to grow and expand – and hey, that’s what we’re here for isn’t it - to grow, expand and transform ourselves?

November 1, 2020

When it comes to making the most of your money, setting goals maybe one of the most effective things you can do to set yourself up for financial success (however you define it).

When you have goals, you can map out a path, giving your money direction and purpose.

Goals allow us (and your money) to grow and expand – and hey, that’s what we’re here for isn’t it - to grow, expand and transform ourselves?

Goals …

o   are something you want to accomplish and focus on

o   give your money direction (it needs it!)

o   provide the ‘why’ and an opportunity to think about and plan for your future self

o   bring satisfaction and accomplishment when we achieve them

o   are results-oriented and create unconscious, as well as conscious, movement in their direction

o   are unique to you, allowing you to put you and your needs first rather than being driven by other people’s agendas

As a former financial adviser and now as a Money Coach, an important part of work I do with clients is to set and priortise financial goals.  

I’m always amazed when I meet people and ask them about their goals, often their response is, “we don’t really have any goals”, or if they do have goals, they’re quite vague and not a source of focus or attention.

Establishing specific financial goals allows you to articulate where you want to go, keep you focused and hold you accountable.

I want to share with you my 5-Step strategy for Goal Setting &Goal Getting:

1.     Examine where you are today

2.     Visualise where you want to be in the future and why that’s important

3.     Write goals out (the easy part)

4.     Set behaviours, the environment and attributes required to achieve your goals

5.     Create Action Plan

Want more on goals….

When setting your goals categorise them into short, medium and long term.

Set big, small and in-between goals.

Typical goals include: financial independence or security, own a home – debt free, transition from full-time to part-time work or retire early and comfortably.

Goals like these are called long-term goals because… they take time to achieve.

There’s plenty of smaller financial goals, that are equally important like, clear credit card debt, save for a holiday, build up an ‘emergency’ savings account of 3-6 months living costs.

These are called short-term goals that, can also help you reach your long-term goals.

Short-term financial goals are equally important and easier to achieve in less time. Once you’ve realised these goals it releases our ‘happy hormones’ –dopamine, oxytocin, endorphins and serotonin – all working to motivate you towards your bigger goals.

You don’t need to wait until you’ve reached your goal either, to pat yourself on the back – be proud of every step you take in the direction of your goal.

It’s important to not have too many goals.  Prioritise them into 1-3 goals that have different timeframes ie. within 12 months, 3-5 years and a 5-10 yr goal.  

If you have too many goals, it will be difficult to maintain focus.

Money is merely a tool. It can take you wherever you wish, but it won’t get there without your directions.

 

A simple, yet important step (my #3…) is to write them down.

Based on a study#  … “you are 42% more likely to achieve your goals if you write them down”

So why does writing out your goals help? You’re probably thinking it seems like a lot of extra work to write something down, when you can just store it in your brain, right?

Writing down your goals makes them easier to visualize, and creates accountability. Study after study have shown that people who write down their goals are significantly more successful in achieving them, compared to those who just think about their goals.

When you write a goal down, your subconscious brain begins to actively think about bringing into your life the resources, people and knowledge you need to achieve them.  

We remember things better when we write them down, right? Right.  You don’t have to be neuroscientist to figure that one out!

 

“WRITE YOUR GOALS LIKE THEY MATTER, AND THEY WILL…”

 

Writing them down however isn’t going to magically make them happen.  

You need to take action and create accountability.  Introducing step #5 …..

Having a goal is the easy part. What are you prepared to do, to achieve it?  What trade-offs are you willing to pay?

We’d all love a gold medal, but who’s willing to get up early and train like an Olympian?

Goals are more manageable and attainable if you break them up into more actionable, concrete steps.

 

Schedule your goals into your calendar: your goal finish time (end date) and book in a regular required actions ie. weekly allocation of your time to work on what you need to do to achieve it.

 

Tell someone what you’re doing – it creates accountability.

 

Ready to take the first step and learn how to set goals you will achieve? get in touch today – hello@womentalkingfinance.com.au

At Women Talking Finance, we can help you define what’s most important to you, then formulate strategies that are best suited for your needs and current situation, whether you are just starting out or retirement is getting closer.

 

 

# Study conducted by Dr. Gail Matthews, a psychology professor at Dominican University in California, on setting and writing goals - 267 participants 

Warmest,

Karen Eley is a financial coach with more than 20 years’ experience as a financial adviser. Through her business, Women Talking Finance, she helps women to be confident and knowledgeable about all things finance. Karen translates complex financial concepts into simple digestible ideas.

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