Lesson 2: Setting Wealth Goals
Learning Objective
Set intentional goals, connect with your wealth goals and align your intent to take action towards your future wealth & wellbeing
In life we wish to do or accomplish things, but just wishing or dreaming about them isn’t going to make them happen. We have to take action. Having money goals gives us meaning for our money – we have a purpose and something to strive for; a focus – something to aim for, to keep us on track and a reason to celebrate.
Goals that are clear and purposeful are a great way for us to picture what we want to achieve and create in the future. Once set, we can then move towards this future in an intentional way.
S.M.A.R.T is the acronym that helps us set goals.
In doing so we make our goals Specific, Measurable, Achievable, Results-focused, and Time- bound.
Did you know that typically we are more inspired to make successful changes when we create emotional and not financial goals?
Why? Because more often than not it’s not actually the goal we are chasing, it’s the feeling.
When we set goals, it’s important to understand why we want to achieve them. We can do this by asking ourselves, how will it make me feel when I achieve this goal?
We might be chasing feelings of hope, happiness, pride, joy, love, happiness or security.
This concept isn’t new, Danielle La Porte does amazing work in the goal setting space and her message is simple: rather than chase a goal, let’s chase the feeling behind the goal.
Mindful Exercise So let’s start with this exercise:
Let’s consider for a moment that you’ve set a goal to pay off your mortgage by the time you are 50.
If you achieved this; how would you feel?
Would you feel free, secure, affluent, empowered, successful or perhaps it’s something else?
Often it’s not the goal of paying off our house that we are chasing, but instead it’s the feeling once we have achieved that!
Can you name two or three other goals that you have (they might be paying off a loan or credit card, saving for a holiday, travelling around the world, being debt free, sticking to a budget).
See if you can fill in the blanks….
When I achieve ,
I will feel .
Or by doing ,
I will feel .
For example: When I am able to stick to my budget, I will feel in control of my money and empowered!
Or, when I pay out my credit card, I will feel a sense of relief.
Feeling good is what life should be about. At the core of all our goals is a desire to feel good. When we can identify what feeling good means to us, and set goals that lead us to feeling this way more often we’ll work harder to hit those goals!
By getting clear on how we want to feel in our lives, and then setting our goals based on these feelings, we can aim to do more things in our life on a daily basis that will create more of the feelings we’re chasing.
The benefit of smaller goals
Smaller goals create momentum.
Dopamine is a neurochemical that motivates us to take action towards our goals and desires. It’s also what gives us the pleasure when we achieve these things! When we suffer from procrastination, self-doubt or a lack of enthusiasm it’s often an indication that we have low levels of dopamine.
When we achieve our goals our brain also releases dopamine.
So by breaking down our bigger goals into smaller ones we can create a regular sense of achievement and regularly release dopamine! Which means with each milestone achieved we create a sense of pleasure and this pleasure state encourages us to repeat the action again and again – i.e. we’re more likely to keep going towards our goals!
Here’s our 6 simple steps to help us achieve our money goals:
Make sure it’s your own goal: While we may share common goals, we need to make them more personal than this. This is where it pays to work out the feelings we will have when we achieve these goals.
Automate: By automating aspects of our finances, we increase the chances of success. For example, if your goal is to save more – set up a direct debit to a new savings account as soon as you get paid, or transfer the savings to an account where you can’t easily access it. If it’s to pay off more debt, try setting up a direct debit payment of regular but small amounts.
Set mini-goals: Breaking down goals to smaller steps makes it seem more achievable and less daunting.
Track progress: Tracking progress toward a goal can be motivational as we see ourselves getting closer to our goal. It also keeps us focused on how far we’ve come rather than just how far we have to go.
Create accountability: Particularly with money goals it’s important to have somebody encourage us and hold us accountable. We could also make our intentions public i.e. to our friends or social network, which can create additional accountability.
Allow room for slip-ups: We need to allow for these minor slip-ups and setbacks, and not use them as an excuse for giving up.
And remember, it doesn’t matter how slowly we move towards our goals, as long as we’re progressing.
Achieving our goals is as much about the journey, as it is the destination.
Being mindful and focusing on the moment can bring us more joy, and we can concentrate on how far we’ve come, instead of how far we have to go.
If our attempts at setting goals have been ineffective in the past or if we’ve tried and failed to reach our goals or targets then we may be discouraged about setting goals in the future.
Is it time to take a fresh perspective on your money goals?
Mindful Reflection/Question
Reflect on the money goals that you’ve set in the past, have they been successful or unsuccessful?
Have a go at completing this sentence:
I think goal setting is
This question can help determine whether you currently value setting goals and making plans.
Visual Achievement Charts
A positive attitude can work wonders towards our progress to achieving our goals, creating lasting new habits etc.
Sometimes, rather than celebrating how far we’ve already come, we get overwhelmed by how far we have left to go. That’s why it’s important to break things down into mini-goals or milestones and recognise each small step that we achieve on our path to change, growth or success.
Goals are more achievable when they’re measurable.
There are many great goal achievement charts that can capture your journey towards achieving your goals. These tools can help you to stay focused and connects you to your bigger goal or purpose. It also helps when you’re feeling a bit flat or negative as visually you can focus on your progress and this can help you keep on track. We’ve created a Mandala Visual Achievement Chart you may like to use. (a second similar goal mandala here)
Remember to take each day at a time, notice how you’re feeling and celebrate each milestone you reach. Be grateful for the journey. And cultivate more gratitude in your life.
