Where do you see yourself in six months, one year and five years from now?
Do you want to upgrade your living situation? Do you want a nicer ride? Are you picturing yourself on a warm, white sand beach? When you think about your ideal future, what images come to mind?
Those mental images can be your starting point toward setting your financial goals for this year.
Working backward, what will it take for you to get to that image in your head?
- How far into the future are you thinking?
- How much money will it take to get there? (You might have to do some research on this one!)
- How much money per month will you need to save (or earn) to get there?
- What sustainable, practical steps can you take to save or earn that money?
For your financial goals, it’s those sustainable, practical steps that will make it possible to get to that picture in your head!
Sometimes when you set a big goal, like saving for an international vacation or a major purchase, it can seem impossible. But if you go after that goal in little chunks, it’s not nearly as overwhelming.
In other words, worry less about saving $20,000 in the next two years, and think more about specific things you can do to save $185 per week. Those specific things you do could include:
- Bringing your lunch to work
- Switching your mobile phone provider to lower your bill
- Refinancing your car loan for lower payments
- Cutting subscriptions you aren’t using Those small, actionable items can really add up!
Setting a specific goal — and breaking it down into actionable steps — is what can help you keep motivated.
Need more motivation? CommonWealth One is starting a "Financial Fitness Challenge" with a Grand Prize of $3,000. Be sure to check your email in the coming weeks to find out how you can participate!
