Goal Setting: Planning for Success in 2015
January 5, 2015
By Aaron E. Graham
This time of year, everyone makes lists of New Year’s resolutions. Effective goal-setting is just as important as creating a list of goals. Whether your goals are financially related or not, a well-defined and thought-out game plan will help you get started and remain enthusiastic about the goals you have set for the year. As you prepare your list for 2015, consider the following steps to ensure a year filled with accomplishment.
Setting Realistic Goals
Human nature is often to jump right into working on plans before planning the way to work on them. As you set your goals, do not put constraints on yourself: think of all your goals now; prioritize later. Because finances encompass many other areas of life, make it a point to jot down some clear financial goals along with your other resolutions. Try to be as specific as possible. For example, instead of setting the general goal to have your finances in order, your might commit to having an emergency fund in place by the end of the year, an excellent way to handle whatever unexpected financial situations arise. By setting realistic goals, you will avoid disappointment and you will be more likely to persevere until you have realized each goal.
- Establishing Priorities
Now that you have your realistic goals decided upon, the next step will be deciding which to tackle first. Try separating your goals into needs and wants. For example, many of us want to have enough in savings for a rainy day, take a trip for a vacation, pay down debt, save for retirement, or pay for a child’s education. But which of these are needs, and which are wants? You cannot work on all your goals at once, so have a clear pecking order, and always put your needs first. Do not rush: remember that this is a process, and cannot be accomplished overnight.
- Taking it One Step at a Time
Big goals often include several smaller steps. Break your larger goal into those smaller action items, and tackle that project one step at a time to achieve your goal. For example, saving $100 more per month for retirement may have several steps: contacting human resources, setting up a retirement account, picking investments, etc. Stay focused on the big picture, and make adjustments as necessary. If you find that you are unable to save $100 per month, maybe you can save at least $50 per month. That is still an accomplishment worth celebrating! You are still making progress towards your goal.
- Celebrating Successes
Give yourself credit. All of us can become so busy that we fail to celebrate our successes. Allowing yourself a reward will keep you motivated to keep working towards your goals, and will build your self confidence in your ability accomplish what you have set out to do. Whether you go to a restaurant or take time to enjoy a favorite activity, remember to stop and savor each of your successes. You will look forward to celebrating again, which will motivate you to tackle the next item on your list.
As you set out to accomplish your New Year’s resolutions for 2015, resolve to be realistic, make priorities and stick to them, tackle your goals one step at a time, and celebrate each achievement. By following these simple steps, your year is sure to be filled with much success. Remember the words of the late Jim Valvano as you reach for success this year: “Don’t give up. Don’t ever give up.”
For more information and tools for successful goal setting, check out the following article on Personal Goal Setting or for a more long-range plan on where you want to be in five years, you may want to read 5: Where Will You Be Five Years from Today?, by Dan Zadra.
Aaron E. Graham is a Financial Advisor with Abacus Planning Group. Abacus is a comprehensive, fee-only financial planning and investment counsel firm managing over $850 million on behalf of its 190 clients. Abacus consists of a team of multi-disciplinary experts who work collaboratively to serve its clients in making smart financial decisions. Visit Abacus’s website.
