Financial Literacy provided by
New Mexico Educators Federal Credit Union

 

Setting Goals

All of your life people have been telling you that you should have goals, and if you are like most people you have been putting them off…all of your life. The bottom line is, however, that goals can help give your life meaning. They give you a reason to get up in the morning. They help you to go to class when you would rather play video games all day long.

Few things are as enjoyable as being able to celebrate the fact that you accomplished your goal.  Take a few seconds to think back to your high school graduation. Now think ahead to your college graduation. Now doesn’t that seem fun. Imagine how satisfying your life would be if every day you had a small taste of that same satisfaction.

If you set goals that are SMART, that is what your life would be like. By SMART we mean:
Specific,
Manageable,
Attainable,
Realistic and
Timely.

If you can have small goals each day and break down the large goals into smaller chunks — whether those goals are personal, professional, or financial — your life will be a whole lot more meaningful. Read on to get a lengthier, detailed and inspirational version of what you just read.

1. Put your goals in writing.

  • This makes each goal more substantial and easier to remember.
  • Post each goal somewhere visible like your refrigerator or bathroom mirror so you'll be sure to see it everyday.

2. Create daily or weekly action items to make your goals achievable.

  • For financial goals, this could be putting a portion of your paycheck into a savings account each payday, or simply giving up that daily $6 Venti Mocha Latte and making coffee at home.
  • For personal or academic goals, you might want to reserve some non-negotiable time on your calendar each day or every other day that you'll use specifically for addressing a given goal.

HELPFUL HINT: Be sure you eliminate distractions during this time. Turn off your cell phone, IM and e-mail alerts.

3. Share your goals with another person.
 Involving others gives a network of support. If you don’t make it to your goal or need help, then they will be there to lend a helping hand.

FOR EXAMPLE:

  • If you've made it a goal to lose weight, give them a picture of your "before" self in a swim suit. If you don’t make it to your goal weight/size, then they have permission to post that picture on your myspace page.
  • If you open your mouth and share your goals with someone, you might find that person has similar goals in mind as well. If it is to lose weight, you can start working out together. If it is to save money, you can have a competition to see who can accumulate enough to buy the newest iPod first.

4. Review each goal before beginning the planning process .
Make sure they are realistic and feasible.

FOR EXAMPLE:

  • If you are planning on being a millionaire by the age of 25 and you don’t have a job, a hobby, or even a major selected that will put you on track to achieve that goal, you may need to re-evaluate your timeline.
  • If you want to write your personal memoirs, but hate to talk about yourself and you don't know how to type, you might need to do some soul searching.

5. Each week, make smaller goals that relate to your long-term goals.
If you break each big goal into smaller goals that are easier to achieve, you can more easily track your progress and feel that you are getting somewhere.

FOR EXAMPLE:

  • If you need to save $500 for a trip to Mexico for Spring Break, itemize that goal into each necessity: $200 for plane tickets, $100 for hotel, $300 for food and “beverages,” etc.
  • Then choose one of those items to work towards each week, so you can start to check them off the list.

6. Check your progress on a regular basis.

  • For Short-Term Goals (3-6 months away), make sure you are making progress on a daily or weekly basis.
  • For Long-Term Goals (6-12 months or more), review them on a weekly or monthly basis. For goals that are a long way off like retirement, check your progress on a semi-annual basis.

7. Let your goals inspire, not haunt you.
Goals should be something to look forward to and something you want to achieve.

FOR EXAMPLE: If your parents want you to be a doctor but you hate the sight of blood or needles — or just other people in general, maybe a career in the medical profession isn’t right for you.

8. Include Personal, Academic (Professional), and Financial Goals in your plan.
This will help keep your life balanced. If you focus too much on one area over another, something or someone is bound to suffer.

FOR EXAMPLE:

  • By focusing too much on grades, you are likely to miss out on all of the fun experiences college provides.
  • If you put too much focus on the fun stuff, while you're still working on all of our Prerequisites, your brother (who is five years younger) will be finishing his MBA/JD Dual Degree Program at Anderson.
  • If you don’t start planning for retirement the day you start your first job, you are going to have to keep working until your younger brother the Lawyer/Business Consultant is willing to let you move into his guest house or pay for your nursing home expenses.