In 2015, spending less and saving more was the 3rd most popular New Year’s resolution. Also, 34% of people who make New Year’s resolutions have money related goals. However, only 8% of people who make New Year’s resolutions are successful in achieving those goals. February just started, but according to the data, 36% of people who made resolutions have already given up.
There are a number of reasons why people fail to achieve their goals. According to an article by Lifehack, setting vague goals that are not linked to a higher purpose are 2 reasons why people fail to achieve their goals.
In order to position yourself effectively to achieve your goals, you need to practice effective goal setting. Keep reading to learn 5 ways to set effective goals so that you can transform your life and finances in 2016.
- Start With Why. This is extremely important, as this is the reason why you want to make the change. Think about how you will feel when you achieve this goal. Also, think about the feelings that you want to run from and the life that you want to create. This will provide the clarity that you will need to identify your “why”. Your “why” is extremely important because when times get hard your “why” will give you the motivation needed to keep going.
- Keep Yourself Accountable. When setting goals, use the SMART format. The SMART format allows you to set goals that are Specific, Measurable, Actionable, Relevant, and Time Bound. When you set SMART goals, you are able to hold yourself accountable because you have clearly defined exactly what you want.
- Create Your Long-Term Vision. Life and financial changes require a long-term vision. You want to move beyond day-to-day thinking and create a vision for the future that you can use to guide your actions. Think about what you want your life to look like in the next 5, 7, and 10 years. Once you know that, you can determine what you need to do to make that vision a reality.
- Determine Where You Are Now. Once you determine where you want to go, determine where you are now. This will serve as your starting point and dictate the initial steps that you must take. When you are evaluating your starting point, collect your current financial information and engage in reflection to understand your current mindset.
- Set Short-Term Goals. Short-term goals are the building blocks of your long-term vision. Take your long-term vision and then determine the actions that you need to take to achieve that goal. For example, if your long-term vision is to be debt free in 10 years, then calculate all of your current outstanding debt, and then determine how much you will need to pay each month in order to be debt free in 10 years. That total monthly payment will be a line item in your budget. Remember that your short-term goals should also be in the SMART format.
Now that you know how to set effective goals that will stick, what goals will you set this year. Leave a comment to let me know.
Aisha Taylor is a #1 Amazon Best Selling Author of the book “5+5 FNPhenomenal Ways to Save $100 This Week Without Killing Your Lifestyle”, the Founder of FNPhenomenal (Frugal –n- Phenomenal), and creator of The Live Phenomenal Program. The Live Phenomenal Program is a program designed to give you the tools that you need to totally transform your finances and stop living from paycheck-to-paycheck. It’s time for you to be Financially Phenomenal! Book your complimentary 20-minute financial clarity session with Aisha here.
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