How to Set Achievable Financial Goals

Learning how to improve your goal setting.

If you've been a part of the internet for the past five years, especially the aspect of social media, you will have seen the "goals" post. This is a social media post where someone finds a photo of something that would be worthy of achieving, having, or being, and that someone adds the word "goals" to the photo. You can say "goals" about anything, but the real goal that people should have is to make their financing more productive, and by productive we mean make more money. For that reason, in this article we will be discussing the topic of how to set achievable financial goals.

How to Set Achievable Goals

Yes, we know that you've heard about setting "achievable" financial goals, and the reason why we put that same word in the title is because achievable can mean something different to every person. In my own personal opinion, I believe that we are all born with the same amount of potential, but our parents, society, and whoever you listen to has had an impact on how much you believe you can do. If your parents and everyone you've ever known has told you that you need to "be careful", "don't shoot too high or you'll be disappointed", then guess what, you will believe that and do nothing.

I'm here to tell you what all of the successful and wealthiest people on earth know and understand, and that is this: you can have anything you want, but not all at once. What this means is that you do have the potential to achieve your goals, but you simply can't have everything. So, how do we set achievable financial goals? First, by setting a goal that is so big, that you are scared to even tell people. This gives you a target larger than your current one so that you can achieve the goal you originally had, and may even hit the larger target.

The steps that large corporations use to run their corporate goals is called S.M.A.R.T, which is an acronym for specific, measurable, attainable, relevant, and time-bound. You already know your goals will be attainable, and relevant so you have to focus on the other three. Make your financial goal very specific. Don't just say, "I want a Crossover suv" or "I want more money", you have to make it specific such as "I will make $15,000 in the next three months." With that statement you have fulfilled four of the five letters because you specified the amount, you know it's attainable, it's relevant, and you set a date by when you will achieve it. So now you need to make it measurable and the way you do this is by creating steps that can be measured, either daily, weekly, monthly, or however it suits your specific goal. An example of this would be to track the amount of phone calls you need to make in order to make $1,000. Once you know that, then you know that you simply have to multiply your efforts fifteen times to achieve your goal.

Now that we have discussed how to set achievable goals, here's a list of the financial goals you may want to set:

  • Increase your credit score and credit report
  • Create a monthly savings plan for a house down payment
  • Save for future education for your children
  • Pay off any debts you have
  • Create a spending budget

In conclusion, in this article we briefly discussed the topic of setting achievable financial goals. Everyone is different when it comes to what words mean and so achievable will mean something different to everyone. Because that's the case, we decided to make this article focus on the S.M.A.R.T. process of goal-setting to make the job a lot easier.