It is Hello Dollar‘s turn to talk about setting goals. Frank has a short and nice article putting financial into the perspective for setting goals. One of the key aspects he mentioned on setting goals is to specifically write down things you want to achieve, but not with vague statements like “get rich”:
…So do you have any goals? If you don't have any more specific than “get rich,” or even “financial security”, then it's time to really give yourself something to aim at. If you're like me, start yourself with something that you can achieve within a few months to a year. Like paying off that one high-interest credit card, or saving a month's salary in an emergency fund. Get the right goals in place, and the good spending and saving habits suddenly aren't so tough…
This is one of the common mistakes for setting goals. Goal setter does not write specific enough on what he/she wants to achieve. Goals is all about giving you direction to work towards to success. You cannot develop any objectives to achieve the goals with vague statement.
Specific is the S in SMART (Specific, Measurable, Attainable, Realistic, Timely) goal setting model. I have been using SMART to assist my engineers to set goals for a while now. It is a very effective to evalulate your goals and make sure it provides a clear target to work towards. I may talk more about this on the other article soon.
Setting Goals – [Hello, Dollar!]