Financial Life Planning is a holistic process that will help you to clarify your values and guide you in defining and designing your unique version of the “rich life.”
Goal setting is an essential component of this process, and a powerful tool for experiencing what is most important to you. When you imagine what you want your life to be like and what you want to achieve, these images will become the basis of your life and financial goals.
In addition, when you translate those images into words and write them down, your goals will become clearer and more compelling. You will derive many other benefits from goal setting as well:
- Goals provide a positive expectancy of the future
- Goals stimulate personal growth and development
- Goals help you to focus on the desired end result and provide the motivation you need to bounce back from setbacks and disappointments
- Goals facilitate “future thinking”—a way of looking ahead and anticipating upcoming needs and wants
- Goals that are inspiring and purposeful will keep you on track and help you to avoid distractions
Despite these important benefits, many individuals are reluctant to set goals. For them, goal setting has been unsuccessful in the past. They missed their targets and became disillusioned.
For others, setting goals creates internal stress by mentally switching a dream from the “want to” category to the “have to” category. Then they begin to feel pressure to perform and experience fear of failure.
Nonetheless, goal setting is an essential component of the Financial Life Planning process. When you clarify what is important to you and what you want your life to be like, you can move toward those images in an intentional way.
Therefore, it is important to adopt a fresh perspective on goal setting, and to align your life and financial goals with your values and priorities.
Reprinted by permission of Money Quotient, NP