3 Tips For Setting Goals You Can Actually Achieve

Note from the editor: As we round out 2017, many people will be setting goals and intentions for the year ahead. To help with that, our blog team will be sharing their take on goals throughout the week — we all have a different opinion! We hope you enjoy hearing how each of us approaches the idea of goal-setting and New Year’s resolutions. From Erik:

It’s that time of year again when many people make New Year’s resolutions only to see them become a source of disappointment and disillusionment. Is there anything you can do to set goals that you’re more likely to achieve? Here are 3 tips that I’ve seen work for financial goals and can be applied to other goals as well:

1. Set the right goals. Make sure the goal you’re setting is actually important to you and not just something that you’re “supposed” to do. Otherwise you won’t feel motivated enough to take action.

  • What are the things that most bother or worry you?
  • What would bring you the greatest amount of happiness?

Focus on the outcome that you want rather than what it will take to get there. For example, one of my top financial goals is to spend less eating out in order to achieve financial independence earlier. The goal is financial independence, not just spending less eating out.

2. Break each goal into achievable action steps. We often start with an ambitious, exciting goal and then feel too overwhelmed to take action. For the goal of financial independence, don’t just calculate how much money it will take. Break that number down into how much you need to save per year and per month. It will look a lot more doable that way.

3. Figure out the price you’re willing to pay. My grandmother used to say that you can have anything you want as long as you’re willing to pay the price. While not literally true, almost every goal does have its price.

Once you’ve broken it down into the action steps, ask yourself what price you’d have to pay and whether you’re willing to pay it. If not, don’t just give up. Instead adjust your goal until the price is right. If the price of financial independence at 50 isn’t worth it, try 60. Otherwise, you may end up waiting until 70 by default.

The 3 important questions

So what goals are most important to you? What steps do you need to take to make them happen? Finally, what price are you willing to pay?

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