Goal setting can sometimes be challenging especially when setting goals for your business’development and growth.
You might think about what you want to achieve with your money but turning this into a reality requires creating a specific, measurable, and achievable plan to follow.
What are financial goals?
A financial goal is considered to be a monetary goal you strive to hit or accomplish. Your financial goals can relate to saving, spending, earning or even investing.
Financial goals can often be grouped together with your budget and financial plan but it’s important to remember that your financial goals are completely separate.
If you have a specific financial goal sometimes, it may be a bit crucial. Without a financial goal in mind, you may lose sight of what you’re saving for, and it will be harder for you to stay motivated.
The Benefits of Financial Goals
When you have clear, realistic and measurable financial goals, it’s easier to achieve them. Writing them down also helps keep you on track and is an effective method that’s used even by CEO’s and professional athletes.
Setting financial goals is an effective way to build wealth, increase revenue, provide a sense of direction and purpose, and keep you on track to achieve financial success.
Establishing financial goals can also motivate and inspire you, as it provides measurable steps to strive towards.
Types of Financial Goals
Goal setting is usually broken up into 3 types, focusing on the period in which it should take to accomplish. The three types of financial goals are short-term, mid-term and long-term.
When planning for a financial goal we should always set goals that are SMART.
The difference between a SMART financial goal and a regular financial goal is that a SMART goal can be tracked and measured, with a set date. There is nothing more stressful than having a never-ending goal.
SMART goals are usually described as:
Specific
Measurable
Attainable
Relevant
Time – Bound
For Eg: If you plan on increasing your business’ capital from $5,000TTD to $10,000TTD (Specific) , you’d need to set a time frame (10 Months) ,. For the next set period, you’d need to add $500TTD (monthly) in revenue to your current capital to achieve the $10,000TTD capital (Measurable, Attainable, Relevant).
Short-Term Goal
A short –term goal is considered to be a goal you’d like to achieve within the near future –12 months or under. For example: Registering your business.
Mid-Term Goal
A mid –term goal is usually a goal that is set for a slightly lengthier period than a short –term goal. A mid –term goal can be achieved in 2 years or even 10 years. The time frame doesn’t usually pass that period. For example: making 1 million dollars in revenue for your business.
Long-Term Goal
A long-term goal is an ultimate objective that is meant to be achieved through a series of smaller goals over a long period, covering five to 10 years or more. Many professionals set long-term goals to establish a clear path of smaller goals and opportunities that lead to their success and fulfilment. For example : purchasing assets for the business, gaining new investors etc.
Tips on setting your financial goal
On top of creating SMART financial goals, creating achievable goals requires a high level of financial literacy. You first need to understand the personal finance basics if you’re to use your money in a strategic way.
Here are some tips that will help you when creating a financial goal:
Create goals you’re passionate about.
Link your passion and excitement to the financial goal by naming it.
Put a date on your financial goals.
Create a visual representation.
Set up automatic payments.
How can Robley Baynes Assist With Your Financial Goals
When you work with Robley Baynes on your financial goals, you’ll feel more confident knowing that your future plans are achievable. If you’re not tracking your goals, or don’t know how to, Robley Baynes can help put the right strategies in place and review your goals to make sure they are realistic.
Creating a financial plan and goals are one thing, sticking to them is the challenging part. With a financial partner by your side, you’re more likely to stay on track.
Contact us today to get started and take the first step towards financial success. Call us at 1 868 293-1508 or email us at service@robleybaynes.com.