Why is goal setting important to achieve financial success?
This should tell you why is goal setting important: all of us have desires and we all want to see them fulfilled. Some are emotional and some are material and all material desires need money to be fulfilled.
However thinking about your wants and wishes and saying you will do something about it someday cannot be defined as a goal. A goal is a direction and result oriented effort put in by you.
So, again why is goal setting important?
Goal setting is important when it comes to finances because most of us cannot save even when we try and that is why it is all the more important for savings to have a cause.
By setting a goal you establish a time line for yourself during which you will work towards realizing your goal and also you will have something to look forward to at the end. These factors play a large role psychologically as they prepare you and drive you towards your goals.
Investment plans are good but most of the investment plans are just plans without a purpose. However if you have a purpose attached to your investment plan then you will also be more driven towards it and refrain from discontinuing it.
It is very important for you or your family to be involved in the investments and that is why is goal setting important. Retirement and education are reasons enough but there is no specific amount you are looking to save here and in such cases the more the saving the better. However if the same retirement plan is teamed up with a cause for example say you want to retire and buy an RV, this teams up as a goal oriented plan and something that you are looking forward to do.
Every year set a goal and ask a few questions as to what would you like to do with your life and how do you want it to be. However it is very important to have realistic ideas that can be achieved with a little bit of effort. You should also make plans that really matter to you as a family and it would add meaning to your life. It may be anything from buying a condo, a boat or help others too.
Once you have chalked out your wants get down to the details and draw a plan as to how you are going to go about it. Write the plan down and have a deadline clearly mentioned on the plan.
Now that you know why is goal setting important, think about your dreams, that’s the way to start with your goals.
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