Here we are at the beginning of June. The start of LGBTQ Pride month celebrations and half way through 2020. It may feel that it’s taken us forever to get here thanks to the shelter in place due to COVID-19. June, being halfway through the year, is a good month to check on your goals.
2020 provides us a unique opportunity. Since it’s a ‘zero’ year, you can easily track progress on your goals. You can use the calendar as a reminder to set those very short-term, short-term, intermediate, and long-term goals. For example, you can still tackle those very short-term goals over the next six months. 2021 is a good marker for your six-to-twelve-month short-term goals, and 2025 for your intermediate goals. Ten years out, use 2030 for your long-term goals.
Let’s take a look at goal setting. The first thing to know is that you shouldn’t set too many simultaneous goals. Pick between one and three goals so you are not overwhelmed. It’s easier to reach those goals if you have fewer, realistic, specific goals.
It is ok to have multiple goals with overlapping periods. For example, you could have two very short-term goals, one intermediate goal, and maybe one long-term goal. These goals would yield calendar dates of 2020, 2025, and 2030. For example, let’s say your two very short-term goals are to organize all financial documents in a single location, and to increase your 401(k) savings rate. You could, for example, set a goal to raise your 401(k) contribution rate by 2% by next pay period and do that within a month. Done! You could give yourself two months to organize your financial documents and set a deadline. Done! You’ve set two specific, achievable goals and a time to complete them.
An intermediate goal might be to buy a new car in 2025. You could pick December 2025 since dealerships provide lots of incentives end of year and get started by calendaring what you need to do between now and 2025. Start a monthly car savings fund and set a calendar reminder to check your progress every quarter. Maybe your long-term goal is to pay off your mortgage in ten years. Work with an adviser to determine exactly how much you need to increase your annual payments to hit that goal, and start adding that amount to your monthly payment.
For any goal, be sure your goal is SMART: Specific (save 5% more), Measurable (how much per week, month, year), Achievable (but challenging), Realistic (does it fit your overall plan), and Timely (have a beginning, and a target end date).
I’m linking you to a 2020 Vision sheet that you can use. It is very simple. You enter your goal, a target date, and SMART description. You can then either print or save the form. I recommend you print it out and post it somewhere you can see it. I also recommend that you use a journal, a digital calendar, or Smartphone task app to keep you on track to reach your goal. Whatever it takes and whatever works for you. Here’s the link: https://form.jotform.com/200125960786154
As an independent Certified Financial Planner™, I can help you plan for and be on top of your goals. Contact me and let’s get started on a savings plan. #talktometuesday #education #Hireaplanner #stressfree #savings #goals #2020vision #debtfree #budget #CFPPro #COVID19