Tell me, what is it you plan to do with your one wild and precious life?
– Mary Oliver
If you want to accomplish something, then set a goal to do it.
Sounds easy right? Well, easier said than done! But, it actually works.
You can achieve your goals. But to do so, there’s a process that you should follow. And I lay out that process exactly below.
You can also use Dream Year, my goal setting workbook, to set your goals.
If you want to listen instead of read, here’s the podcast episode that goes along with this post — How To Set Goals.
Step 1: Create visions for your life
Before you set individual goals, consider the main eight life categories: health, relationships, finance, career, personal/ spiritual development, recreation/play, environment, and service/contribution.
In each area of your life, before you create goals, create a vision. That is to say, write down what you believe in (your values) and what you want for your future. It is fruitless to create a goal without having an overarching vision because you won’t know why you’re setting your goal, and when you reach it, you won’t feel as good about it.
Step 2: Take inventory of your life (think and reflect upon where you are now)
After you know what you want, you need to check in with yourself and “take inventory” of where you are right now.
Look at each area of your life and write down the status of where you are. Be honest with yourself. If you’re in an unhappy relationship, write that down. Being honest with yourself will help you make the necessary changes in order to move you toward the life you want to live. Do this for every area of your life.
Step 3: Create an overarching plan for each category
With each life category written down, decide on one big, overarching plan to lead you toward your vision for that category.
For example, if your financial vision is to become financially free and be an example to your children, your corresponding, overarching plan could be to become debt free (and stay out of debt) and build wealth.
The vision is something that is a way of life; it’s your legacy. The overarching plan is the biggest goal you set to get there — it’s something that is attainable. After you set your overarching plan, you’ll then be able to set smaller goals that are measurable and attainable.
You should also check out the Best Planning Practices podcast episode where I teach you how to plan.
Step 4: Set your goals
After you know what you want (vision), where you are (inventory), and your main plan of getting to where you want to go, you are ready to set goals.
A goal is an achievable aim or target in the future.
One of the most popular goal-setting strategies is the S.M.A.R.T. acronym.
Goals should be:
- Specific (not vague)
- Measurable (detailed)
- Achievable (attainable given where you are now)
- Relevant (related to the area of your life that needs improvement)
- Timely (with a definite deadline)
This means that when you create goals, they should be narrow, in writing, achievable, and have a deadline. Goals can be long-term goals (over one year) or short-term goals (less than one year). You can do this for all areas of your life, or you can focus on a few areas that you want to change the most. Examples of long-term benchmarks are: 5 years out, 10 years out, and 20 years out. Short-term benchmarks for goals include anything less than 1 year, such as one week or 12 months.
A good way to know whether you’re setting appropriate goals is to follow Michael Hyatt’s advice and ask whether you are 1) staying inside your comfort zone (bad), 2) getting outside your comfort zone (good), or 3) being delusional (bad). You want to set goals that stretch you outside your comfort zone (i.e. that are a reach for you), but not so far of a reach that they’re delusional.
Decide what categories you want to create goals for (as little as one category up to all categories), and get to writing. Keep in mind that the more goals you have at one time, the harder it is to focus. It may be more effective for you to focus on 1-4 goals for the first half of the year and the remaining 4 life categories in the second half of the year. Or, if you are only struggling in one area of your life, it may make sense for you to focus on that category for the entire year, setting goals only for that area of your life until it has improved. Only you know where you stand, so choose your goals wisely. Use your inventories from above to determine where you should focus your energy.
I also recommend using tools that will help you ensure you’ll achieve your goals. The best tool I’ve seen for this (and I’ve tried a lot of them), is [easyazon_link identifier=”0996234004″ locale=”US” tag=”financegirl05-20″]The Freedom Journal[/easyazon_link]. It’s a journaling book that teaches you how to accomplish your goal in 100 days. I use it and find it very easy and helpful.
Examples of two bad goals:
- Get on track financially this year.
- Be more careful with my credit card.
Examples of two good goals:
- Create monthly budgets the first of every month for the following month with my husband.
- Pay off my credit card every month and stop using it for everything except groceries.
In the bad set of examples, you can see how the goals are vague and do not have deadlines. In the good set of examples, the goals are specific and timely. Both of these goals are written down which is incredibly important, too.
Step 5: Implement your goals
Implement your goals by taking action. This may seem obvious, but I believe implementation and planning needs to be a separate step because it is the difference between success and failure.
The reason I am so productive and accomplish my goals is because they are concrete and always on my calendar (I use Gmail’s calendar and always have it in the month view so I can visualize what is coming up in the next week and month). If I don’t use my calendar to plan my goals, I have about a 20% success rate. I have found it is the little things (habits and systems) that make success possible (and almost guaranteed) for me.
Whatever calendar you use, put your goals on it as deadlines.
Also, put a weekly “goals check-in” on your calendar. Your deadlines will keep you on track and focused. Your weekly check-ins will allow you to make changes and plan accordingly with respect to your deadlines. Perhaps this means that every week you put on your calendar “work on goals” on Saturday morning at 10am. Whatever works for you, the key is to plan it. If you plan it, it will happen. If you don’t check-in with yourself, you won’t give yourself the opportunity to make changes based on your circumstances. For example, if you plan to train for a marathon and put deadlines on your calendar but you’re injured two weeks into training, it doesn’t make sense for you to keep those goals on your calendar. You need to make changes accordingly.
Step 5: The 4 R’s — Reward, Reflect, Revise, and Repeat
As I alluded to above, you are going to need to make changes. As much as you try to plan your life, you can only do so much. There are circumstances that are beyond your control that will happen. And there are circumstances that will lead you to change what you want. While you may think you know what you want in 5 years, you may end up being way off.
Enter the 4 R’s. First, you should reward yourself after accomplishing any goal. We’re creatures of positive reinforcement and you’ll have more success if you reward yourself. Second, reflect on your progress and think about the journey as time passes. Without reflection it will be hard for you to learn and grow. Third, revise your visions, plans, and goals over time. As you change, so should your goals. Revision can take place during your check-ins so that you keep moving forward in the direction you want as things change. Finally, repeat the process by continuing to make and write down new goals as time goes on.
A Final Note!
The meaningful progress you make by creating and achieving your goals will leave you happier and with fewer regrets.
A life without direction is a life wasted. #TRUTHBOMB
I know this because I switched careers and have built a new life for myself. I couldn’t make the money I do online without having set concrete goals for myself.
I really like point #4 for having benchmarks is an opportunity to stop and celebrate, and also have the opportunity to prove to yourself that you are capable of doing whatever you put your mind too.
For me I also have to keep the big picture in my mind, for at times I will forget what goal I am trying to achieve, and become so overwhelmed by the present drama that I would lose focus.
Great tips.
Petrish @ Debt Free Martini recently posted…What Do People Really Think About Your Blog?
Yes, you vision is absolutely helpful in terms of keeping you focused on why the specific goal is important. I can’t imagine not having a vision to correspond with my goals!
This is a really great guide, Natalie, and I love how your instructions take someone from high level down to the lower-level detailed goal-setting. I sometimes have trouble reconciling my high-level life “vision” with my low-level goals. You have to break it down to such a detailed degree that sometimes it’s easy to forget how the two are (or should be) intertwined.
DC @ Young Adult Money recently posted…Invest in a Company or an Industry?
Right, D.C. And I think people either struggle with one or the other. In your case, when it’s easier to create your vision and know where you want to go, it’s harder to actually create goals that get you there. Making sure they’re definite, time-bound, and in writing should hopefully help make your goals easier to carry out.
Great guide Natalie!! I think the most important thing is to realize that you need goals in life. I can’t tell you how many clients I sit with and ask them where they want to be in 5 years and they look at me like a deer in headlights. If you don’t know what your goals are, then how do you know you are moving in the right direction?
Shannon @ Financially Blonde recently posted…Music Mondays – The Riddle
I LOVE the “where do you see yourself in 5 years” question! It is something I’ve learned to use personally, too. Unfortunately, I’m not shocked to hear many of your clients aren’t doing this. I will say that once you start, it’s so helpful that it’s easy to stick with.
I think too often people make the mistake of set if and forget it. Goals, especially long term ones need specific benchmarks. I also don’t think people really asks themselves what they really want and what they are willing to do to work for it.
[email protected] and the Beach recently posted…Learning a Musical Instrument: A Good Investment?
I think using a calendar is one of the best ways to hold yourself accountable in that regard. I know it works wonders for me!
There’s nothing like the relief of finding what you’re looking for.
I can find comedy in a good show far easier than a bad show. The bad ones are just irritating to watch.Thanks for the suggestion but I doubt I’ll be adding a Superstars recap any time soon, unless they drastically change the format. It’s just three matches which don’t impact upon the storylines.
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This is so awesome, Natalie! I’ve been working on my new year’s resolutions and this will definitely come in handy. Many times it’s hard to stick to my goals because I don’t clearly define them so I don’t have anything specific to target.
Christine @ The Wallet Diet recently posted…Blog Holiday Giveaway! Off Track Planet’s Travel Guide for the Young, Sexy, and Broke
Thanks, Christine! I can’t tell you how much goal-setting helps me, too. Good luck!!
This is a great guide to goal-setting and will certainly help set a person up for success. In the past I haven’t always followed through on each step which of course makes it more difficult to achieve what you want. I’m going to use this process to set up my goals for 2015. Thanks so much.
Gary @ Super Saving Tips recently posted…10 and a Half Things to Do for Year End Tax Planning
It’s certainly hard to follow all steps all of the time. But having an outline of what steps to take is the best way I’ve found to keep me on track in the best way possible. Good luck!!
Many times I don’t realize how far I have advanced without looking back. When I look at my finances a year ago I’m way ahead and going back 6 years I’m not even in the same hemisphere. I still haven’t achieved what I want, but I am well on my way. No goal I have ever set has been smooth…lots of challenges along the way, but I just keep trying. Everyone fails and you have to factor that in and just accept it and move on. Failure is part of learning and doing better the next time.
Lance @ Healthy Wealthy Income recently posted…How To Get A Raise and Spend It Away
Reflection is a huge part of the process, Lance! I think it’s so helpful to appreciate how far you’ve come. It is amazing when I look back a year or two to where I was financially. The growth is amazing. But like you, there’s still so far to go!
You know how much I love goal-setting, Natalie, and this a great guide for newbies. It always surprises me how many people don’t have “real” goals. They have dreams or generalized ideas of what they would like, but they don’t have specific goals that motivate them. It’s really hard to create your ideal life when you don’t know what that is! I love the 4 R’s and sometimes people forget to do them. Goal-setting is an ongoing process and no goal is ever set in stone. You often do need to make tweaks along the way and that’s perfectly fine. Some people get stuck on the false belief that goals should never change.
Shannon @ The Heavy Purse recently posted…3 Gifts Every Parent Needs to Give Their Kids
Really awesome guide! I loved hearing about that study too! I will definitely be thinking about my goals for 2015 and writing them down.
Melanie @ Dear Debt recently posted…How I’m Saving $500 by Not Watching Porn
I know – writing my goals down is something that I have to plan otherwise it doesn’t get done.
That study is mind blowing! Thanks for writing such a meaningful post about goals–they are SO important and essential to success.
Brittany @ Fun on a budget blog recently posted…Weekend Survival Guide for the Girl on a Budget
Glad you enjoyed it, Brittany!
Great post Natalie! You’ve got me motivated to start really thinking about my goals for 2015. My dad is a big “goals” guy. Every semester before school started and every January, he would always ask us about our goals. I love goals because they motivate me to challenge myself.
Liz recently posted…What to Give Grandparents for Christmas
Definitely! I can’t imagine my life without goals.
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Goal setting help us to stay organized. By choosing to be more aware of the type of goals we set, we contribute to the likelihood of achieving them.
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I think the “reward” part is a great idea as long as people don’t go too crazy with it 🙂 I’m always amazed when I see shopping addicts who reward themselves for not spending money…by going on a huge shopping spree with a credit card. It’s kind of like an alcoholic rewarding themselves for a month of sobriety by going on a drinking binge.
Jen @ Frugal millennial recently posted…Why You Need an Emergency Fund – Even if You Live With Your Parents
Thanks for the article. I really like how you recommend thinking about where we currently are because that is definitely a necessary step that is typically left out.
Hi! I really liked this blog post! I am kind of lost at the moment, about what to do with my life, so this helped me a lot! I bookmarked this page (do people still bookmark or am I the only one?, haha) for future reference 🙂
Thanks! I’m so glad!
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Great article. Personally I brake my goals in to mini goals, and I put them on a chore sheet, and mark them off as I complete the tasks.
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