In the past, I’ve set monetary goals for myself and wouldn’t come close to achieving them. Want to know why? They weren’t specific enough or attainable. I’d make pie in the sky predictions that I had no way of meeting, but they looked good on paper so I typed them out.
This year, I’ve changed that strategy. Instead of making some savings goal that I couldn’t possibly achieve, I started small with a shorter time frame. And you know what? I’m meeting and EXCEEDING those goals!
Here’s what I changed:
- Overall amount of the savings goal – I’d love to write out a goal of saving $20,000 in a year, but I just don’t have the extra cash on hand to achieve that goal. Instead, I looked over my budget, cut back on the items that I absolutely could live without, then came up with a reasonable monthly savings amount.
- Length of time for review – When I’d randomly check on the status of a goal (or at the end of the year), I’d have no idea how I was doing from one moment to the next. I’d even forget what my goals were! Instead, I’ve shortened up the time frame to a quarterly system. Every three months, I check back in on my goals to analyze my progress.
- Became more flexible – In the past, if it looked like I wasn’t going to meet a goal, I’d just give up. Now, I realize that instead of giving up, I can change my goals to fit my current situation. Life is a series of ongoing changes, having the flexibility to alter my goals makes sense.
How am I doing?
I’m kicking butt! Not only did making these changes increase my chances of success, but I’ve actually exceeded my goals. For instance, I wanted to pay down my $2,715 of consumer debt. I’m down to owing only $200. As for savings, I’ve bumped up my mutual fund by $4,200! And, I’ve continued to make bi-weekly deposits to meet the 52-week savings goal, which I modified for myself so that I’m depositing $100 every two weeks.
Next quarter’s goals include paying off some tax debt and continuing with my savings plans.
How have/do you tackled monetary goals?
6 Comments
Good work!! I think the shorter time frame helps, don’t you? We’ve really upped our savings in the last few years and I’m finding it kind of addicting. The thing that helps me most is having savings sub accounts for individual goals (college, emergency fund, retirement, etc.) It helps keep me motivated when I know what I’m saving for.
@Julie – The shorter time frames definitely help. Right now, my main focus is a down payment and a small ER fund (though my darn cat, Sam, keeps that ER fund on the low end! 😉 ) Retirement is for next year (thankfully I have a pension that’s been going now for 12 years -whew!)
It never hurts to bump up savings. I am fortunate that I have the ability to really ramp up my savings lately. Spending less than you make is a large part of any saving program, I am not sure why many people cannot understand that.
@No Nonsense Landlord – The first six months of this year have been stellar for us. We’ve made more money and saved more. If the next six are the same, we’ll be ahead of the game!
My wife and I set up financial goals all of the time. Currently we are trying to save 50% of our income. In the near future there are job changes and hopefully a family on the way. The more cushion we can have the less stressful things will be!
On a side note, on my blog I have page dedicated to debt payoff to inspire others in getting out of debt. Feel free to send me the details and I will be sure to add you to my list! Here is the page in question:
@Jon – Saving 50% is awesome! I’m hoping to come close to 34% by the last quarter of this year. Our goal is a down payment on a house. We’re making good progress so far!