Pete the Planner: Setting Financial Goals

What is the key to financial success?

Though there are probably several ways to answer this question, the most responsible answer is learning how to set and accomplish financial goals. Sound too simplistic? It’s not! In fact, people tend to ignore this easy advice and make life harder for themselves. Humans are never more overconfident than when they set goals. Here is an in-depth look into how to set financial goals that are reasonable and attainable.

1. Be specific
Financial goals need to have dollar amount attached to them so you can track and evaluate your progress, and the only way to get a specific dollar amount is to jump into your budget.

2. Set a limited time frame
Why are New Year’s resolutions notorious for failing? One simple reason: a year is too long to accomplish a goal. Consider setting a thirty day goal, which will give you time to make real progress without getting burned out.

3. Be realistic
Being aware of your spending trends will help as you look for areas to cut back. Challenge and push yourself, but in a realistic way.

4. Get emotional
Throwing the weight of an emotion behind a goal can help it to feel more immediate and help raise the stakes.

5. Be accountable
Few goals are achieved without a little help from your friends. Maybe you aren’t comfortable sharing intimate financial details with a friend, but few people are successful without a little push and encouragement from a partner.

Setting financial goals is only one piece of achieving financial wellness. Accomplishing those goals is the vital part. For a more in-depth look at these tips, you can view the Pete the Planner Guide on Setting Financial Goals on One Day is Today.