Setting and Achieving Goals
The greatest danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark.
IF YOU ASKED MOST PEOPLE if they had goals, almost everyone would say they did. So the real question becomes, why is it that most people don't work toward achieving their goals? The main reason is that their goals aren't in front of them on a daily basis. Another reason is that when they set their goals, they don't do so properly. For example, someone might tell you something like, “I want to go to Hawaii.” Although this is a goal, it is not set up properly to be met with success. Let's look at what needs to be done to increase the likelihood that goals will be met.
You may be wondering why a personal finance book has goal-setting as the subject of the first chapter. The reason is to help you identify the things that are most important to you so that, when you are making financial decisions later on, your focus and priorities will be on these goals.
The first step, and the biggest, is to write them down. Studies have shown that those who not only make goals but also write them down dramatically increase their chance of success in achieving their goals.
The second step in setting a goal is to ensure that you have defined all of the components of a goal. You likely have heard the acronym “SMART,” which stands for Specific, Measurable, Attainable, ...