QUESTION:

How do I set better financial goals?

Short answer:

Focus on the 3 S’s in SucceSS: schedule, start, simplify.

Long answer:

Financial goals fall short for a variety of reasons, but the three most common culprits are ambiguity, inactivity, and complexity. To overcome these roadblocks and develop better financial goals, focus on the 3 S’s in SucceSS: schedule, simplify, and start.

SCHEDULE

“A goal is a dream with a deadline.” – Napoleon Hill

It is impossible to properly plan for “someday.” Defining a timeline transforms a dream into a goal by demonstrating commitment and intent.

Start by breaking down your goals into three categories: Short-term (less than 1 year), Medium-term (1-~4 years), Long-term (~5 years or longer). The timeframe will help guide an appropriate plan for achieving success.

START

“Well done is better than well said.” - Benjamin Franklin

Eliminate all excuses – there will always be a reason for delay and time will continue passing by. Focus attention on achieving progress, rather than perfection.

Determine how much you can actively save on a regular basis. People often fall victim to saving “by accident” – meaning whatever remains after paying bills/other expenses. Instead, prioritize savings and define a dollar amount to regularly commit toward goals. Create a positive experience by starting small and increasing the amount once comfortable. But remember – the right number isn’t zero.

SIMPLIFY

“Simplicity is the ultimate sophistication.” – Leonardo da Vinci

Make saving as easy as possible – removing roadblocks increases success.

A few streamlining tips:

Automate saving programs and reoccurring investments by linking investment accounts and bank accounts.

Create separate accounts for each goal to stay motivated and easily chart progress.

Revisit your goals on a periodic basis (at least annually) to monitor and make necessary adjustments.

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