Ever wonder why it is important to set goals? According to a study by the University of Scranton in the Journal of Clinical Psychology, 30% of New Years resolutions are money related. It also states that 45% of Americans make a resolution and that only 8% are actually successful in achieving the goal they set forth. Why is that the case?
The main reason is that they don’t write them down. When you have clear & concise written goals, you know what to strive for and you can devise a plan to achieve them. The criteria that I use for making written goals is called “SMART goals.”
What are SMART Goals?
Specific – Your goal can’t be vague. It has to be pointed and have a specific purpose.
Measurable – It has to be quantifiable, otherwise how do you know if you have truly achieved it?
Attainable – It has to be something that is achievable. Saying you want to fly to the moon tomorrow, is not likely to happen, so make sure your goal is attainable. It is OK if it is difficult to attain, but just don’t write down goals that are improbable. You will just get frustrated and you are likely to give up.
Relevant – It has to be a goal that is relevant to what you are trying to accomplish in life. Again, if you say you want to fly to the moon, yet you are a CPA with no desire to do the astronaut training, you may want to re-think this goal.
Time Sensitive – It has to have a deadline attached to it. This way you have a time-frame in order to plan how to achieve your goal.
Here is an example of a SMART goal that Kim and I used which we were able to accomplish:
“We want to pay off $52,000 in debt in 18 months.”
This was Specific because it was clear and precise. It was Measurable because there we specified an amount which allowed us to gauge our progress. It was Attainable because we had a car to sell that would pay off $18,000 of that debt as well as I had a commission based job where the harder I worked, the more I got paid. It was Relevant because it applied to us and it was something that we really wanted to do. Lastly, it was Time Sensitive because we listed that we wanted to pay it off in 18 months.
What are your financial goals? Do you have them written down on paper? If not, today is a good day to start.
I have a scratch pad that I keep in my bedside table drawer. It’s where I calculate monthly budgets, come up with rough estimates of payment plans, plot out my next mortgage. It’s not official, but it’s a whole lot of writing! I don’t often include your “T” – but maybe I should. It’s good to set a deadline.
I know would you mean about avoiding the “T” for time sensitive. But I truly believe that having a deadline can be the difference between achieving a goal and not. Let me know how it goes!
You’re welcome, I’m glad you liked it.
Absolute bulls eye! Each aspect is so very important to reaching success. Great blog!
Thanks Connie!
I’m still learning from you, but I’m trying to reach my goals. I certainly love reading all that is posted on your blog.Keep the aarticles coming. I enjoyed it!
Thanks Larita for your feedback. Glad to hear you like it.
[...] Set goals – Tracie Taylor leads Millionaire U which is a three-day real estate training course for “advanced” students. In the class she states, “People with goals are the ones who succeed.” Tracie is not the only one who says setting goals is important. Mary Kay Ash was also an advocate of goal setting. Mary founded Mary Kay Cosmetics, which at the time of her death, had over 800,000 representatives in 37 countries and total annual retail sales over $2 billion. Listen to what she had to say, “We must have a theme, a goal, a purpose in our lives. If you don’t know where you are aiming, you don’t have a goal. My goal is to live my life in such a way that when I die, someone can say, ‘she cared.” For more on this, check out The Importance of Setting Goals. [...]
[...] 5. Have written goals and post them where you can see them. [...]
[...] in achieving their goals. Will you be the 8%? One of the best ways to achieve your goals is create a written list and post them where you can see them. This way the goals are on the forefront of your mind and you [...]