Goal Setting 101 (Part 2 of 2)

Can you guess what is in the secret sauce?

The secret is in the sauce for Goal Setting 101…

In our last post, we talked about the first three steps to creat clear financial goals. Today, we are going to reveal the last three steps AND the secret sauce ingredient….

Step 4 of  Goal Setting 101 – Add the secret sauce.

Imagine that it is the date that you established in Step 2. You have the amount from Step 3 for your fund named in Step 1. You have achieved YOUR goal. What are three words that describe how you are thinking and feeling? Stop and consider this question carefully. Really get into that vibe. Own it! This is powerful stuff. No room for doubts here.

Step 5 of Goal Setting 101 – Make it visible.

Now that you have all the required elements, write it down and make it visible.

  • I, <your name>, have saved <$$$> by <mm/dd/yy> for my <sexy goal name> Fund. I feel <word #1>, <word #2>, and <word #3> to have achieved my goal.
  • I, Betsy Biggoals, have saved $1,000,000 by 12/31/2055 for my Hasta La Vista Corporate America Fund. I feel proud, grateful and excited to have achieved my goal!

Step 6  of Goal Setting 101 – Lather, Rinse, Repeat.

Congratulations! You have created your first financial goal. Ask yourself if there are any other goals that you want to meet. It is possible to have more than one goal at a time. Once you have created all of your goals, you are ready to crunch the numbers and make any necessary adjustments. For now bask in the sunshine of your success and give yourself a big pat on the back! Well done. Bravo. Hooray!

What? You need a link to do the math? Okay no problem.

Here is one for a spreadsheet.

Here is one for an online calculator.

One other handy tool I’d like to recommend is goalgami. They have a household balance sheet that simplifies the big picture. You can run various what-if scenarios and check on your goal affordability. There is a timeline to show you how your goals stack up and you get a clear picture of your financial future.

Interested in specific tips for specialty goals like college savings and retirement planning? Stay tuned for future posts on these and many other financial topics. Have a burning question? Leave a comment or use the contact page if you prefer not to share your question publicly.

 

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