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Tips for Setting Goals

– Jennifer Streiff

Having trouble meeting your goals? Can't stick to those resolutions that you made? Here are some tips to help you better define your goals, and help you reach them!

  1. Be specific about what you want to accomplish. Avoid subjective goals such as, 'I want to save more money each month.' Instead make it a specific goal. In this case, 'I want to save 10% of my income every month.'
  2. Set realistic goals. If you are currently overspending your income by 10% each month, as most Americans are, you can't expect to save 10% in the first month. But you could get to that point in 6 months.
  3. Break your goals down into measurable, manageable steps. It may seem overwhelming to think about reducing your spending in all of your budget categories at once. However, if you cut your spending a little each month in first one category, and then two, etc. it has a domino effect and you can see the benefits right away. Seeing the results immediately helps to keep you motivated and on the path towards your bigger goal.
  4. Think about your short-term goals and your long-term goals. Make sure they are in harmony with each other. If one of your long-term goals is to eliminate all your consumer debt within 5 years, than make sure that one of your short-term goals is to put a certain percentage of your income each month into debt reduction.
  5. Be flexible in your goals. For example, you have a goal of setting aside 3% of your income into your 'emergency fund' each month until it reaches a balance of $3,000... and then you have an unexpected car repair that requires you to use all the money. Just stay on track and keep depositing that 3% each month. After all, that's what the emergency is for, unexpected emergency expenses.
  6. Review your goals periodically and make adjustments if needed. When you check your progress, you may find you are reaching your goal faster than you thought. Why not use this extra motivation to increase the goal? Set those expectations a little higher!
  7. And last but not least, always write your goals down! Putting them in writing will help you to remember them, help your commitment level and help to keep you motivated.