"Hi I work for a Debt Agreement administrator. There are 3 ways to end a debt agreement, you pay it out in full, you can apply to have the agreement terminated (however interest backdates from the start of your agreement), or you can offer to make a…"
FatCat's MoneyConfessions - helping you save (& make) money, one click at a time
Financial goal setting. Key points.
Taking charge of personal finances begins with setting financial goals. But where to start and how to achieve them?
Self-made multi millionaires Justin Herald and Danial Ahchow (both of whom are profiled on FatCat) offer the following advice. Herald says, “be realistic and choose tangible goals”; Ahchow says, “it’s not about the money, it’s about creating the vision”.
Professor Chris Jackson, Australian School of Business, University of NSW recommends setting a hard and specific goal “because that will allocate your cognitive resources towards achieving that goal”.
He says; “those who have no idea what they want to achieve tend to drift”.
Suggested steps:
1) Identify your goals – short-term and long-term - in order of priority. Compounding interest will assist in attaining long-range goals. Money stashed in interest-earning savings accounts or invested in stocks and bonds grows and compounds.
2) A financial goal requires a road map and a journey needs a destination so one of the first decisions should be determining how you want your financial profile to look in 5, 10 and 20 years time. Consider putting pen to paper and diarising this because seeing it in black and white grounds it.
3) Ascertain what needs to be done on a weekly and monthly basis in order to achieve your goals and create a financial breakdown, budget and schedule accordingly.
4) Pat yourself on the back when you accomplish even tiny steps towards the ultimate goal. This will give you the motivation to retain focus and drive.
5) Begin now! Be prepared for change! Don’t let three steps forward and two back deter you. Keep going!
Self-made multi millionaires Justin Herald and Danial Ahchow (both of whom are profiled on FatCat) offer the following advice. Herald says, “be realistic and choose tangible goals”; Ahchow says, “it’s not about the money, it’s about creating the vision”.
Professor Chris Jackson, Australian School of Business, University of NSW recommends setting a hard and specific goal “because that will allocate your cognitive resources towards achieving that goal”.
He says; “those who have no idea what they want to achieve tend to drift”.
Suggested steps:
1) Identify your goals – short-term and long-term - in order of priority. Compounding interest will assist in attaining long-range goals. Money stashed in interest-earning savings accounts or invested in stocks and bonds grows and compounds.
2) A financial goal requires a road map and a journey needs a destination so one of the first decisions should be determining how you want your financial profile to look in 5, 10 and 20 years time. Consider putting pen to paper and diarising this because seeing it in black and white grounds it.
3) Ascertain what needs to be done on a weekly and monthly basis in order to achieve your goals and create a financial breakdown, budget and schedule accordingly.
4) Pat yourself on the back when you accomplish even tiny steps towards the ultimate goal. This will give you the motivation to retain focus and drive.
5) Begin now! Be prepared for change! Don’t let three steps forward and two back deter you. Keep going!
Tags: Goals, budgeting, prosperity
Views: 66
Replies to This Discussion
-
Permalink Reply by Bandwidth on -
Hello Jill
Good summary of the goal setting process
In my experience I have fone the time frames that most people seem to work best in is 18 month 3 years and 7 years, why I don't know.
What i have presents is 18 months is do-able 3 years is achievable and 7 years is plausable. This eems to hel people set the right goals.
Any other thoughts
-
Permalink Reply by Vonny on -
I remember a school experience where the teacher asked us to draw out our timelines and what we wanted to do when. This is probably the very very first experience I had of goal setting and I had no idea since I hadn't even thought about this before. A sneak peak at a friend's work showed that she had listed when she'd get married, have kids, get a job etc. Maybe she'd had some practice at this before?
Fast forward to now, and it seems like I am no longer a stranger to goal setting. Really it is about what you want to do when and then you slowly formulate how you will do it. If it is a financial goal, you will need to find out how much you need to save or make each day/month/year to get there. If it seems feasible by your calculations then you work to achieve the goal. While you work towards your goal, you check every once in a while to make sure you're on the right track. Are you falling short and need to work a little bit harder to get there or are you ahead of schedule?
If you believe a goal is totally fantastical and way out there, it is likely you will not achieve it since it is not feasible (or you don't believe it to be feasible). It needs to be something you need to stretch to be able to do but is doable.
Now I love to set my goals. The blueprint is at the back of my mind and my mind works subconsciously to achieve it. I bring up my goals often in conversations with my partner and he thinks I think too much!
-
Permalink Reply by Bandwidth on
-
Hello Vonny
What other people think of you is none of your business :-)
Your goals have become your passion and as such they are you.
The more people you convince you are going to achieve your goals the more comitted you will become
-
Permalink Reply by Kbot on -
Hey Vonny, your attitude towards goals is why things probably work out for you most of the time in life. The problem for most "unsuccessful" people comes down to nothing more than a bad attitude and lack of focus.
Just out of interest, what's on your list right now?
-
Permalink Reply by Vonny on
-
Hi Kbot,
Yes, things do work out for me most of the time. Well at the moment my next big goal is to buy my own home with my partner so that gets talked about the most so far. In a bit further it's the whole, get married have kids thing. On the financial side, after I buy a house I plan to do some share market investing. I got in at the worst time for a beginner (just after the august 07 drop) but it's a good lesson. In a way it's good it happened now before I put too much in there. In the meantime I'm going to read up and learn a bit more about strategies and all. Careerwise, I got to what I wanted so far and I haven't really figured what I want to do after so I'll lounge around a bit there till I figure that out.
Bandwidth - it's true, the more you talk about your goals, the more committed, excited and closer to achieving them you get. I find that the more you talk, the more details form and that's the visualisation aspect of your goal.
-
Permalink Reply by BanditGirl1200 on -
Hi Vonny,
Sharing your big goals can also have the added benefit of others being able to help or advise. Or your partner may be able to help just by helping you to stay on track!
Cheers,
Sue.
-
Permalink Reply by Warren on -
True BG1200 - once you share it with enough people, you have to go through with it otherwise you run the risk of becoming a "gonna". I find this works well for me - it makes it more real when you talk to others about it.
-
Permalink Reply by T Tokyo on -
Hi Vonny, actually it was probably the best time to get in as a beginner! You would have learnt some important lessons from losing money. I pity the poor sods who start in the midst of a bull market, learn nothing because everything is going up, then lose the lot.
-
Permalink Reply by Bandwidth on
-
Hello Vonny
With the share market have you read this http://www.moneyconfessions.com.au/profiles/blog/show?id=2081871%3A...
It may help
-
Permalink Reply by Ivan Moore on -
I always thought setting goals was a waste of time and energy and cruised through live just taking what fell into my lap. Now I am older and have been stung finacially and have the standard wife,kids & morgtage to think about (instead of myself) I was actually setting myself goals without thinking of it. At present I have had a real good hard look at where I/we are and don't really like it. Because I know I can do better for my family and my wife & I in the future. So I have set goals for myself and have found it empowering telling people of what I/we want to achieve. (just a side note. My wife and two teenage daughters were involved in all discussions and in setting of the goals & procedures of how we are going to get there) I agree with Bandwidth on the time frame. It seems more realalistic somehow. Also telling people. I have found, people who have knocked my ideas, only make me more determined to prove them wrong& not let them drag me down. And people who encourage me actually make me feel real good in myself & want to try even more. Needless to say the latter group of people are the group I socialise with more often than not. Best of luck to everyone. Don't dream it.DO IT!!!
-
Permalink Reply by Bandwidth on
-
Hello Ivan
I have found that the people who knock other peoples goal are often uncomfortabel either with making goals and or their inability to move forward. They then respond by trying to keep others in the same space. This is the "If I can't do it why should you be able to do it" or a derivation of the "Tall Poppy" syndrome
Bandwidth
-
Permalink Reply by Ivan Moore on
-
Totally agree Bandwidth. They only make me stronger.
Latest Activity
Cliff Mearns replied to Cliff Mearns's discussion Bankruptcy -v Debt Agreement"Ben, let's not lose the loop. How financiers view bankruptcy is not relevant to the discussion of an individual's capacity to pay something. Bankruptcy is being utilised as a means of evading debt obligations. "
Bankruptcy ben replied to Cliff Mearns's discussion Bankruptcy -v Debt Agreement"I agree with the setiment however in reality there's nothing to encourage an individual to make a payment with a Debt Agreement! While technically it's different most financial companies regard it as the same as bankruptcy."
VOTE NOW
FatCat news
Is The Bible The Ultimate Financial Guide?
Maybe it's time to go back to Sunday school.What makes entrepreneurs successful?
By being hardworking entrepreneurs, we all have the opportunity to be very successful.How Asia Survives A Sinking Euro
At this point, it is best for investors to prepare for a worst case scenario.How To Build A Successful Career As A Published Writer
Perhaps the most important trait for any writer is die-hard determination.5 Tips for Launching a Volunteer Program
Organizations come in all shapes and sizes but when it comes to giving back to the community there's a common path to success.Badge
Groups
-
Saving cents
5 members
-
Surviving Interest Rate …
7 members
-
CompareShares articles
11 members
-
FatCat articles
19 members
-
Beating credit card debt
8 members
© 2012 Created by FatCat.
