It can be empowering and encouraging to set financial goals.
It can also be overwhelming.
They can seem big (ie cost alot of money).
They can seem very, very far away (ie 20…30…40 years…).
But, when we know they are important to us and when we make funding them a priority, things can fall more into place.
Sure, there are still unplanned events that require our financial resources, which can distract us and feel frustrating.
So how do we keep that from happening? How do we not get discouraged? How do we stay on track, even when unexpected events happen?
The key is linking our daily life activities and behaviors, which are things we can control, to our goals.
How do we go about doing that? By really focusing on our goals and what they mean to us.
In so many ways this can sound so obvious. But, this really is the starting point. The next step, then, is to connect your lifestyle to your goals.
Many, if not most, of my clients want to retire early. Or want to be able to quit their current job, maybe even current career, and do something else.
A big and (perhaps) far away goal!
But their ability to achieve it, or any goal for that matter, is directly correlated to their ability to make tradeoffs on a monthly, weekly, daily, sometimes even hourly, basis.
It’s not a coincidence that the first task I have a new client do is create a Spending Plan.
A Spending Plan shows them, very transparently, what they are buying.
Hopefully it prompts them, and in turn you, to ask yourself: Why am I spending this money?
Are these things I am buying more important than my goals?
If they aren’t then why am I doing this?
How are they keeping me from reaching my goals?
Crucial question, that one: Because whether you like it or not, it’s not a matter of ‘if’ it keeps you from reaching your goals, it’s a matter of ‘how‘.
So, there you go. It’s likely something you already knew.
Focusing on the things you are spending your money on (and why) challenges you to align your spending in a way that correlates to reaching your goals.
This not only goes a long way towards reaching your goals, but it also makes you more intentional in your spending.