Having trouble with setting goals
I’m having a hard time coming up with concrete goals for reducing debt or increasing my net worth. I feel like I can’t pay off my debt any quicker or save any more than I already do. I’m reading the goals on other blogs and some of them are so concrete, e.g. “increase my net worth by n%.” How does one do that? Is it a matter of saving more, earning more, or investing more wisely?
I feel like the only goals I can make involve continuing to educate myself about finances and investing, but citing those as actual goals seems kind of vague. I was really hoping to come up with something more quantifiable.
More on this later, maybe...
posted by SMB @ 2:19 PM
4 Comments:
I understand your comments all too well. If you can't contribute more to debt reduction or investments or whatever, that's fine. But drawing a line in the sand or whatever it takes (short of being at the Alamo) to set a goal is a good thing in that you are compelled not to skimp on monthly payments or savings.
What I realized this year is I needed to set concrete goals for 20 years down the road, then figure out how 2006 fits into that plan. And vague goals like educating yourself is fine, but you need to be willing to commit once you understand more. If, while reading more on Roth IRAs (for example) makes you realize that they are exactly what you need, then re-configure your short term and long term goals to include Roth IRAs.
As too many people say online, your mileage may vary. But the goals that are right for you are obtainable with strong effort and they put you on the track for your long-term goals. Investments are a fluid thing, but the end goal shouldn't be. My 2 cents worth, and you get change if you ask...
Good luck, and I look forward to the "more on this later" part!
I think a big part of being able to set financial goals has a lot to do with being able to see where your money is. For example, a simple spreadsheet that tallies your monthly expenses versus your income can help illustrate how money flows through you.
Once you have this down, you can then know with certainty whether you are in over your head with your debt, or whether you simply continue to add to your debt.
What I did and this might or might not work for you is this. I transferred all my balances (I have credit card debt) onto two 0% cards. I then used a 3rd card that had 0 balance to cover all of my expenses. That card is paid off in full each month. Anything leftover (I plan this meticulously) is used to pay off the other cards.
Once I get this ball rolling, I can start to think about setting aside some of the money to save or invest. But it really starts with being able to see the big picture. Otherwise you're going to stall out of the gates every month. Keep us posted!
I struggle with goal setting myself since I hate to fail. If I never set a goal I can't fail to reach it - right? But as others have said, if you don't create a goal you can't stretch or challenge yourself to achieve it either.
Good Luck!
I've been avoiding the end-of-year goal setting, too. Because my spouse just went down to part time, and I just upped my hours, everything in turmoil. I know this sounds unambitious, but my major goal is to continue to save the amount we're saving, even tho our income just dropped a little.
BTW, nice blog. I just found it. Your profile says you're in museums/libraries--which? I'm a librarian and an archivist.
Post a Comment
<< Home