Good morning Dinks. Let me ask you a question, do you have goals? I told my co-worker that I really want to go to Italy but it just never seems to work out. She asked me why I’ve been planning and saving for so long to which I replied “Because it’s one of my goals.”
She proceeded to inform me that she doesn’t have goals. She lives her life one day at a time and if an opportunity to do something (like travel) comes up she’ll go, but she doesn’t plan for it – or for anything for that matter.
That is definitely one way to live, I prefer to set goals and have something to work towards but I don’t just set any old goal. I set smart financial goals. There’s nothing worse than not achieving a goal; it’s sad, it’s make me feel bad about myself and it’s discouraging. Smart financial goals are definitely the way to go.
Here’s a step by step guide to setting smart financial goals:
Set realistic goals
First off a good goal is realistic. If your goal isn’t realistic then it’s just a dream. I like to research and find out exactly how much my goals will cost then I can start planning from there. If I know how much my goal costs – such as a trip to Italy for example – I know how much I need to save and that will determine when I’ll be able to go.
I don’t want to over extend myself saving for a vacation because that means I may fall behind on my current bills. I will save moderately and if that means waiting an extra six months for my trip then so be it.
Make sure your goal is worth the cost
I’m a big believer in spending money wisely, in my world that means great experiences and something with a return. I don’t mind spending money on a vacation, but I won’t overspend. I will have the trip of a lifetime in a really great city with comfy accommodations but I will search the web for deals to get it. I try to never pay full price for anything because it makes me sick to pay for something knowing that I could have done it cheaper.
I also don’t mind spending on something that gives me something in return such as education or a home. I feel better about spending a lot of money if I get something back. That may be selfish or it may be smart, but either way that’s just me.
Do it right the first time
It’s rare that we get a second chance on things in life so if you’re going to set a goal don’t half-step it. Do it big and do it right the first time. I don’t want to go to Italy and miss out on things just to save money. I am probably only going to get one chance to go to Italy and I’m willing to spend a little extra money to have the trip of a lifetime.
What’s your goal?