A big part of how we manage our finances is to define our goals and then to go after them with a vengeance. Setting goals is one of the first steps towards learning about the power of saving, building wealth, and balancing what you want and what you need.
Working Together
We believe it is important to work together and to discuss your values and get buy-in from both partners. Communicating with your partner about goals and dreams is really essential. Also remember that it is the process that matters, so be good to each other, and yourself, as you pursue your goals and dreams.
Establish Your Goals
Sit down, perhaps both together and separately, to really consider what it is that you would like to establish as your goals. Remember, this is your life, and setting goals will help you get where you want to go. Setting both short and long term gives gives you a sense of what your long term horizon looks like, but also gives you concrete steps to take today to reach your goals. Remember as well that it is best to make your dreams expansive, sometimes its good to make stretch goals.
Monitor Your Progress
Depending on your goal, it may often take awhile to actually reach it. In the mean time it is very helpful to track and monitor your progress to make sure that you are on track and reward yourself along the way. Also keep in mind that progress is all a matter of perception, inch by inch, its a cinch. You can also judge how you stack up against the rest of Americans. We benchmark how we are doing against our goal of $4,000,000.
How to Do it?
Everyone is different, but generally speaking it holds that you need to be dedicated to your goal, diligent about your saving, and being conscious about spending can make a world of difference. Step back and weigh the short term gains of whatever consumer purchase you may be considering (whether it is gum or a new pair of shoes) versus your goals. Staying motivated is also one of the keys to reaching your goals.
Adjusting Over Time
Goals often sound good to begin with, but life tends to change, and goals often need to adjust with them – even if that means stretching beyond your original goal.
DINKs Goals
Most of the time we are able to achieve our goals successfully, but there are also instances when our goals change, or we have to adjust to the realities of the recent financial crises by weighing our investment options and paying off Miel’s student loans rather than buying real estate as we had hoped. We believe in visualizing your goals and recently set our own five year goals.
Good luck reaching your goals!
Miel&James
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