Planning a vacation without picking a location would be a pretty hard task to achieve. You would not be able to arrange how to get there, where to stay or what to do. When you select your vacation destination it allows you to make plans that help you get there.
Setting goals is not any different than planning your vacation. First you need to know where you want to go, and then you can make arrangements to get to that destination! The steps you take to get you to your destination are your goals.
When you know where you want to go then goal setting becomes easy. The following three steps help you determine how to set goals.
Determine Your Values:
Understanding what you value in life will help you maintain focus on the important things. If I say that I value health, but have no goals on health then I know I need to go back and redo my goals. Try and pick five values that you want to focus and emphasis in your life. You can set goals without doing this step, however if you want your life to follow your values it helps to have these values as a guide.
Create a Vision Statement:
Write out a detailed story of what you want out of life, where do you want to end up. Include everything from being healthy, to where you want to live and what you are doing when you live there. The more detail you put into your life vision the more you will be able to plan for and make your dream life happen.
Give yourself plenty of time to do this, and don’t rush! Create your vision for 3, 5, 10 and 20 years away, if retirement is further than 20 years, include retirement also. Remember that without planning where you want to go, it is difficult to actually get there.
Now take your vision statement and begin creating your plan for achieving that vision. This plan is what will become your goals. For example if your goal is to retire by 55 and golf by the ocean, then you know that you need to accumulate enough money to finance your retirement years, pay for golf and by an ocean house. Your goal becomes the amount of money you need to achieve this vision, such as save $4.5 million by the age of 55. (More on retirement planning) As a final check, make sure that your vision and goals reflect what you value in life, if they don’t go back and work the values into your vision.
There you go the steps on how to set goals that will help you achieve your dreams. It may seem overwhelming, but when done the right way your goals will get you exactly where you want to go. Now the next step is to plan how to achieve your goals!
Need one on one help determining your goals and then creating a plan for how your finances will help you reach those goals? Our financial coaching services will help you through the confusion and overwhelm and into a plan that works for you!