Steps to Achieving Your Goals

Here’s a guest post from MollysBrother. He writes over at Molly’s Brother on a Budget and also has a free e-book on personal finance. Thanks MollysBrother for the guest post!

Often times, when I sit with psychotherapy clients, I try to have them identify one area of change that they would want to work on. Together, we then create and articulate goals related to that specific area of behavior change. Following a session with a client the other day, it dawned on me. Many of these same practices related to attaining goals are easily transferred to establishing and attaining financial goals. In fact, they are the same steps.

Once mired in any mount of credit card debt, it seems as though our financial situation can’t be changed. The simple fact remains, it is completely flexible. But, only you can change it. Here’s how:

Establish Attainable Goals — Articulate the broadest possible goal you have. Once you have done that, figure out a way to achieve these goals by breaking them up into smaller, more attainable tasks. Now, breakdown those goals into smaller objectives and tasks. For example, you might decide that you want to have a net worth of $1 million (dream/overall goal). To do this, you might realize that you first have to own a house (smaller goal). In order to own a house, you might have save money for a down payment (smaller task). In order to save money for a down payment, you might have to reduce your credit card debt (smallest task). Therefore, in order to reach your large goal, first concentrate on the attainable short-term goal of eliminating your credit card debt.

Start Small — As mentioned above, starting small will give you the skills, building blocks, and confidence to reach your goals. Start small and expand from there. If you have a goal of paying down X amount of money this year, but you have never paid off such a large sum before, then start small and build off your success. Pay the minimum balance. Then, each successive month, raise the payment by $5 or $10 or $25. When you feel that you can pay the balance + $25, up it $5 more. When that becomes a comfortable amount of money, raise the payment again.

Or, if you want to save money, but you have never successfully saved in the past, use this strategy. Try to set aside 1% of your paycheck. When that is a comfortable amount, up it to 5%. When that has become comfortable, raise it to 10%. Many stop at 10%, but you may want to extend it to 15-20% of your paycheck.

Work Through the Setbacks — As with most things in life, there will be setbacks. Face this fact early on and arm yourself with the necessary mindset right away. Know that these hiccups will come along the way in reaching your financial goals. Be confident that you will be able to work through the setbacks and that you will be able to keep your eyes on the prize.

If you establish goals–attainable goals–you will build the necessary habits and develop the ideal skills to make your financial dreams a reality.

Thanks MollysBrother for the guest post!

Posted by Tricia on December 26, 2007 at 4:44 PM in General Personal Finance |
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  1. Mollysbrother responded:
    Posted: December 27th, 2007 at 4:18 am

    Thanks for the mention, my friend! Hope you had a Merry Christmas and I wish you the best in the New Year!

  2. Ryan S. responded:
    Posted: December 28th, 2007 at 12:29 pm

    Thanks for the reminders on making steps toward your goals. Sometimes small steps are the ones that help the most…
    -
    Ryan
    http://uncommon-cents.net/

  3. The Chef responded:
    Posted: December 29th, 2007 at 12:48 am

    Nice Post… It gave a sense of Universal Truths. Yes! I feel all the points metioned here are unversal truths and can be applied in different fields of life; personal, professional alike.

    The first point I feel is very subjective when it comes to attainable goals. The word attainable may be different for the same person at different points of time (the time difference may be as close as one hour)

    Also if you are setting attainable goals then there is no scope for stretching yourself to achieve those. Setting a slightly higher goal than the attainable, will be a good goal to work for and stretch to the limits.

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