Some people call them New Year resolutions, I simply call them goals. I personally set goals for many areas of my life: personal, family, career, financial, spiritual and social. I believe that each area is connected, and to make any lasting changes we have to focus on the whole person. I’m not saying that I completely remake myself every year, but I do try to make little changes across the board to help me achieve my ultimate goal.
Have you set goals for 2011 or have you sworn off making resolutions because they never work? I would like you to forget about past failures and think about goal setting in a new way. My friend Jane Pollak is the ultimate goal setter. She tells her coaching clients that their goals need to be specific with a measurable timeframe.
How do you take a vague long-term goal and make it more specific? Start with baby steps. Here are some examples:
Bad Goal: Save more money this year
Wait! That looks like a great goal, doesn’t it? Sure, but let me show you how to make this goal specific and measureable.
Good Goal: Save a specific dollar amount per week for one month. Repeat each month for the entire year.
Why is this better? We took the original goal and made it specific and measurable. Resetting the goal each month also helps you work around changes in your budget. Some bills are quarterly, there are weddings and holidays, slow seasons and busy seasons.
For example, your goal for January might be to save an additional $20 per week because you have holiday bills to pay. When you achieve that, you can pat yourself on the back and plan for the next month. In February, your goal might be to save an additional $50 per week. Whatever you decide, make your goals achievable according to your budget and needs. Don’t set yourself up for failure by setting impossible goals.
Bad Goal: Pay off debts
This is too vague and might not be achievable.
Good Goal: Pay extra on one debt until that debt is paid in full. Then move on to the next debt.
Why is this better? You are focusing on paying off one debt at a time. This is more achievable. Remember to make your payment plan achievable according to your budget and needs. Don’t set yourself up for failure.
Setting Multiple Goals
I have told you that I tackle multiple goals. How do I do that? Easy, I don’t start all of them in January. That would make me crazy. Each month I reevaluate the previous month’s goals to see how each one is coming along (remember the measurable standard) and then I make adjustments if necessary. When I’m ready, I add another step to my monthly personal assignments. So, in the examples I gave above, I might have started my savings plan in January, but waited until April or June to begin my debt payment plan.
Breaking your goals down into achievable tasks is the key to success. By taking small steps, you will be building on your accomplishments and continuing to meet your goals versus setting your eyes on something so big that you stop trying. The momentum is what keeps you going. You don’t climb to the top of the mountain without taking many steps to reach the top. The same is true with improving your finances.
Jill Russo Foster is the author of Cash, Credit, and Your Finances: The Teen Years. She provides practical tips for every day finances. Learn more about protecting your credit and living within your means, with Jill’s popular free reports and bi-monthly ezine, available here ==> CashCreditandYourFinances.com
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