Posts Tagged ‘Goals’

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.



Goal Setting 101 (Part 1 of 2)

You know about SMART Goals.

Are your goals SMART?

Goal Setting 101

You even know about SMARTER Goals.

Have you created a SMARTER goal?

Goal Setting 101 v2.0

But do you know how to create clear financial goals?

<cue drum roll>

GOAL SETTING 101 Formula

Can you guess what is in the secret sauce?

Goal Setting 101 v3.0

I am about to show you the secret to creating clear financial goals. Are you ready?


Step 1 of Goal Setting 101 – Give your goal a sexy name.

It is not a retirement fund. It is a “Work Optional Fund.” Think “Future Longhorn Fund” for the kid’s college savings. Make it personal – something that resonates with you. Which sounds better to you? “Home Improvement Fund” or “Feather My Nest Fund”?

Step 2 of Goal Setting 101 – Pick the specific date you want to meet your goal.

This is your first draft. You can crunch the numbers later and adjust. Milestone birthdays work particularly well. Special anniversaries are another favorite. Planning for college?Remember to pick a date that lines up with tuition deadlines.

  • 11/12/2013
  • 1/1/2015
  • 12/31/2030

Step 3 of Goal Setting 101 – Quantify your goal.

Again, this is your first draft. In an ideal world, what do you want? Be precise. Add the bell and whistle options. For instance – if you are saving for a home – include the extras like moving expenses and a monies to decorate your new living space. Go big or go home.

  • $1,333 a month for 4 years
  • a lump sum of $128,125.19
  • $100,000 a year for 30 years

We are halfway there. Ready for the secret sauce? Stay tuned for tomorrow’s post where I reveal the secret ingredient and the last three steps…

Be sure and comment below. I would love to hear what names you create for your goals. Have fun with this!

Need one-on-one coaching on this topic? Schedule a complimentary session with Money Mentor Coach, Dedra Murchison.