Goal Setting – Financial Goals (part 3)

This is the third installment in my Goal Setting series.  In this article we will demonstrate the model set forth in the first episode for Financial Goals.

As a recap:  You will recall that I am a firm believer in establishing goals across 8 unique facets of my life Spiritual, Financial, Career, Personal Development, Physical, Family, Social, and Household.  I name my approach after a 1998 Tom Wolfe novel, a Man in Full – because I like the imagery evoked by the title.

Money is the lifeblood of society.  It flows in and out of our lives but if we are not paying attention it will carry us to places where we would care not to be.  Establishing goals for our financial lives is similar to budgeting but it is more philosophical than mechanical in its approach.  For maximum effect I suggest using both.

While these examples borrow from my own goals, these are genericized for demonstration purposes.

Man in Full – Success personified in this category resembles:

·         ZERO DEBT – not even the house!

·          $2M Retirement Nest Egg

·         12 months liquid funds available for Emergency or Play

5 Year Goals – Over this timeframe I will make the following strides towards actualizing my vision

·         Debt limited to primary mortgage and attacking with double principle payments 

·         $401k in 401k

·         College funding underway (assuming kids)

1 Year Goals – This year I will make the following strides towards success

·         Eliminate remaining non-mortgage debt

·         Eliminate 2nd mortgage

·         Read 4 books on Personal Finance

·         Rationalize Life Insurance Coverages

·         Establish/Update Will

1 Month Goals – Monthly activity schedules may resemble

·         Rebalance 401k in March

·         Pay off final Student Loan in May

·         Complete Books – March, June, September, December

Today – I will do something today that bends my behavior towards my vision

·         Delay a purchase or resist a compulsive purchase

·         Balance Checkbook/Update Budget

·         Review Budget Spreadsheets and Goals

Just as Rome was not built in day and the longest journey begins with a single step, the power in this model is in how it causes us to consider our end product each day.  In this way we do not simply arrive at our destination as much as we invent habits and patterns that over time reveal our vision through us.

 

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Related Articles I enjoyed:

What I can do today to make me rich in the future

Good Debt?? There’s no such thing

Paying off Credit Card Debt in 10 steps

Financial Goal Setting

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