My financial goals change at least once a year. While that might seem like a lot, it’s not necessarily a bad thing. I’m in a different spot now than I was a year ago, and it would be silly for me to keep saving money for something that no longer appeals to me.
Since I don’t have any debt, all of my goals have to do with saving money. A little less than a year ago I set a goal to save for an investment property. After setting that goal I started redirecting all of my extra money to an earmarked savings account.
Now, I’ve changed my mind. I want to save a large down payment for a house of my own.
And you know what? I might change my mind again, but either way I’ll still be stashing away the money.
I am pretty certain that buying a house and some land is going to stay on my long-term goal list.
As an avid goal-setter I know how easy it can be to lose focus on those long-term financial goals. So today I wanted to share three things that help me stay focused.
Creating a Goals Binder
I created a goals binder several months ago for my online business, and I love it! All I have to do is open up the binder to review my long- and short-term goals, see what I need to do, and stay inspired.
I have my binder broken down into sections: the “why” of the goal, the actual goal, an action plan, what I’ve accomplished, and of course, inspiration!
Having all of my thoughts on the subject in one place is great.
Naming Your Savings Account After Your Goal
Another thing I do is name my savings account after my goals.
I use Capital One 360 for all of my savings accounts. I break the accounts down and name them individually. I have college savings for each of my daughters, an emergency fund, a salary fund, a slush fund, and an investment property fund (soon to be switched to a down payment fund!).
Being able to look at those individual accounts and see where each stands is extremely motivating.
If you don’t know where to start, here are some of the best savings accounts you can find: you can take a look at savings accounts here.
Setting Quarterly Goals and Milestones
If you’re trying to save a large amount of money or pay off a large amount of debt, the big picture feels so far away. When you check your bank account and see that you only have $2,000 out of the $40,000 you need, it be can be a bit . . . well, disheartening.
A way to overcome this is to set quarterly goals. While you should definitely know what you’re shooting for, it makes more sense to set and achieve those three-month financial goals than it does to look two years out. By setting these smaller goals you’ll always feel like you’re almost there — making you want to push forward.
When You Fall Off Track . . .
When you fall off track, just hop back on.
Nobody is perfect. Everyone falls off track sometimes. However, the thing that separates those who achieve from those who fail is the ability to recognize their mistakes and get back to the plan.
How do you stay focused on your long-term financial goals?