How to Set Great Financial Goals and Keep Them

Setting financial goals is a great way to set your sights on a bright financial future. But, often, people set goals that are too broad, like:
These goals are difficult to track and even harder to stick with. Great financial goals are clear and specific, enabling you to work towards establishing better financial habits.
The Art of Goal Setting
Setting financial goals enables you to see how your money is working for you. And, often, seeing progress in reaching your short-term goals can motivate you to stay on track for the long term.
The best goals follow the SMART process. Using this acronym will help you to create financial goals that are:
Using these steps, let’s go back to the broad financial goals above and turn them into great goals.
How Can I Stick with My Financial Goals?
Make them real: Writing down your goals is the first step in bringing them to life. The more you see them, get familiar with them, and talk about them, the more real your goals become. And goals that seem real are more likely to be achieved.
Automate if you can: If you can set up an automatic payment towards an online loan or transfer to a savings account, do it! The best way to ensure you’ll stick with goals is to make sure it happens in the background, so you’re not faced with the consistent decision of whether or not to put money towards your goal.
Get an accountability partner: This might be your significant other, best friend or mom. Ensure that the person you choose as your accountability partner will support you to stay on track with your financial goals. Avoid choosing your happy-hour buddy who may want you to blow it “just this once” so you can grab drinks.
Remember why you started: The “relevant” piece of goal setting is critically important. When you’re faced with the choice of sticking with your financial goal or spending money elsewhere, remembering why you chose the goal and what it will mean when you hit it can be the best motivation.
Reflect on progress and celebrate: It’s essential that you reward yourself for hitting milestones and achieving your goals. If you’ve successfully saved your goal amount to pay towards your student loans for six months, check out that account and see how drastically your payoff date has changed. Then be sure to reward yourself with a favorite movie, a fancy coffee drink, or whatever small reward makes you feel celebrated.
If you miss a month of saving towards your new home, that’s okay. Reset and get back on track next month. Nobody is perfect, so give yourself grace, and remember that keeping with your great financial goals over the long term is what matters.
Notice: Information provided in this article is for informational purposes only. Consult your financial advisor about your financial circumstances.
Source: iQuanti, Inc.