How to Set More Effective Goals

Setting goals is something that is often talked about in corporate settings. Most people who own a business and/or have experience working in a position of leadership recognize the importance of setting goals and the value it brings. While goals are often set and worked toward in the business world, few people make the effort to create and follow them on their own time. 

And when they do try to set goals, they don’t do so effectively because they don’t know how. This is a missed opportunity for many people who either don’t understand the value of setting goals or don’t know how to do it effectively and efficiently.

Why Is Goal-Setting Important?

At some point in our lives, we all have likely heard the theory that when someone is lost in the forest or in the desert, they tend to walk around in circles. While that common expression didn’t originate from any factual evidence, studies have been done to confirm that the theory is true: Without some sort of reference point, people who are lost in the forest or desert do have a tendency to walk in circles.




This is a great analogy demonstrating the importance of setting goals. Goals that are properly set serve as reference points in the future that we are hoping to attain. When we have a clearly-defined goal that we are working towards, it puts our path of life into perspective and gives us more direction than we otherwise would have. 

This is why successful companies integrate goal-setting into their business routines and why you should integrate it into your daily life.

How Can I Set More Effective Goals?

Not all goals are created equally. Some are much more appropriate, reasonable, and effective than others. In fact, some goals are just downright useless. Others, on the other hand, are extremely beneficial. The differences between the two are important. Here are some of the defining characteristics that all effective goals share:

• They are specific. Instead of telling yourself, “I want to be in good shape,” a much more effective alternative is to narrow it down and be more specific. For example, “I want to be able to run a mile in 7 minutes.” The more specific the goal, the better, because it’s much easier to visualize and to know when you have attained it. While it can be difficult to know when you’re “in good shape,” it is extremely easy to know whether or not you can run a mile in 7 minutes.
• They are measurable. As the previous example demonstrated, goals that are measurable are much more effective than ones that are not. If you set a goal to be more productive, at what point do you cross that goal off? How do you track your progress? If, on the other hand, you set a goal to make a to-do list every night and cross at least 4 things off of it the next day, you have a definitive goal to reach and you can measure your progress as you go.
• They are achievable. If you set a goal that is too easy, you’ll accomplish it quickly without stretching yourself. If you set a goal that is too difficult, you’ll lose your motivation and give up on it. Every great goal is easy enough to achieve and difficult enough to stretch you. Always remember that!
• They are relevant. This one’s a bit obvious, but it’s worth repeating that there’s no point in setting goals for things that won’t improve your life in some way. If you have a specific problem—let’s say you’re struggling with a substance abuse addiction—you’ll want to set goals that are recovery-specific. For example, setting a goal to go one month without abusing drugs or alcohol will be much more effective than setting a goal to learn to play the piano (a silly example, I know, but it demonstrates the point well).
• They are time-sensitive. Every effective goal has a deadline. Referring back to our previous example, instead of simply saying, “I want to run a mile in 7 minutes,” it’s much better to say, “I want to run a mile in 7 minutes by January 4th, which is in 5 months.” That way, you have a set time frame and have given yourself a deadline to work toward.

Set SMART Goals

If you’re having trouble remembering the formula that every effective goal follows, remember the acronym SMART:

• Specific
• Measurable
• Achievable
• Relevant
• Time-sensitive

If you keep those things in mind as you set goals, you’ll be on your way to living a more peaceful and productive life in no time!

6 Habits That Can Be a Financial Disaster

It won’t be wrong to say that money is our lifeline. Without it, life cannot be enjoyed to the full. While doing all the luxuries, you need to save your money simultaneously. Savings is important to secure not only your future but also of your kids. Bad financial habits can put you in a risky situation eventually.

By saving, we don’t mean that you need to curtail all your wants. Just a little bit of change in your lifestyle can make huge difference.

Some of the bad habits surely can be avoided to help your finances from getting destroyed are as follows:

Careless Use of Credit Cards:

Having two to five credit cards in the wallet has become a common thing. However, it’s okay. But, if you’re using them irresponsibly, check your habit. It’s true that numerous credit card companies enable the users to earn lucrative awards by using cards. 

Yet you should know without making any profit, these companies aren’t going to give you a single buck. It means that common guys have to pay more interest than earning points from it.

There are chances of yours not belonging to the common class. Wait a second. Ask yourself- ‘Can I pay off the credit cards amount every month?’ Prior to using credit cards, determine whether you can afford to pay the monthly bills. 

Mostly, people frame their budget which they follow strictly to pay off credit card bills. Use credit card only when it’s necessary and not when you want it. 

Following Others’ Lifestyle Blindly:

Are you buying gold just because your neighbor did so few days ago?

Never let yourself to fall into comparison trap. It can have dire consequences. When you’re following the lifestyle of your friends and neighbors heedlessly, you’re ruining your income. You may have other necessities. Buying things to flaunt it to your friends may compel you to dig into the savings.

There’s no thumb rule that you have to cope up with your friends to get respect from them. Remember, you’re earning money to support yourself and your family. Hence, living with your means will be a prudent decision on your part. On the other hand, if you go on following others, you’ll start to take wrong financial decisions.

Spending Money on Cigarettes:

As per CDC’s view, “Use of tobacco is the single cause of death in the US that can be prevented.” Smoking not only kills a person slowly but also eats up his lifetime savings. As this process is quite slow, most of us neglect this harsh fact.

Let’s assume, you’re spending $4.5 daily on a single cigarette packet. And, if you’re buying two packs, the total cost stands to $9. Now, if you calculate it with 365 (number of days in a year), the overall expenditure becomes $3285. 

Isn’t the amount big? It is one of those bad financial habits that can be avoided. Moreover, if you’re a chain smoker, your insurance payment will be three times more than a non-smoker. Time has come when you should stop such bad habits. Kill it before it kills you.

Irregular Payment of Insurance Installments:

Insurances are useful. Paying the monthly installments may seem a burden to you initially. When you pay it regularly, you’re saving a lot for the coming years. However, there are many people who avoid paying the insurance installments on a regular basis. 

What they fail to realize is that if they don’t pay the installments monthly, then penalty charges will be incurred upon it making it a big amount.

Absence of sufficient insurance coverage may compel someone to use up his retirement account. Reviewing the coverage periodically is essential to make certain that you have insured all your assets properly.

Giving Info to Vendors:

Often visiting shopping sites may influence you to save your details with that specific vendor. Hundreds of them have easy shopping options. Shopaholics can purchase from these shopping sites with a single click. 

eware of such shopping options. They may make you bankrupt by offering lucrative things at discounted prices. These offering may be so irresistible that you won’t think twice before spending your cash on it.

Don’t allow the online stores to save your credit card info. If their catalogs and emails are tempting you to purchase immediately, skip signing up for it. Being a shopper, you may feel excited on hearing about a sale. However, it doesn’t mean that you should go for one.

Summing Up

Discipline is significant to get rid of the above-mentioned bad habits. Practice it again and again to get success quickly. If you can do it, you’ll find that you have saved quite a considerable sum at the end of every month which you can give you support during emergency situations.

Jennifer Cooper is a personal finance blogger and content writer. You can visit her personal finance blog at pro finance tips.

How Much are your Vices Costing you Every Year?

A pair of In-N-Out cheeseburgers. (Photo credit: Wikipedia)

We all have bad habits of different types. You may think its okay to indulge in the occasional vice; you work hard, you need to let off steam and have some fun. So what if you have a few drinks after work or buy another pair of shoes. If you have so many shoes that you keep them boxed under the bed because you have nowhere to store them or if your few drinks after work have become a daily ritual, this means that your vice has become habitual and you may need help to reverse your ways. 

Fast food

We all love the convenience of fast food, especially if you don’t have to get out of your car! With many fast food outlets open 24 hours, it is so easy to order, then drive through and collect your order. As an occasional treat, this is okay but if you find yourself eating fast food on a daily basis, this could have a detrimental effect on your health and your wallet. 

Daily coffees

It is so nice to start the day with a freshly brewed cappuccino or latte. The true coffee aroma is intoxicating and grabbing one of the way to work plus having one at lunch time is only loose change. Well, that’s how it feels but add up two coffees a day and see how much you’ve spent on coffee or energy juices in a month. 

Cigarettes

The price of cigarettes has risen dramatically over the past few years. Government taxes on cigarettes are exorbitant. If you total how much you would spend on cigarettes per week, you would then see how much your smoking vice is costing you per year. For smokers, insurance policies are also more expensive. 

Impulse spending

Unfortunately, the euphoria you experience after purchasing the must have item, is short lived. The reality check happens when you first sight your credit card statement. You must keep track of your spending and put a stop to unnecessary impulse buying. 

Alcohol

A Kranz (wreath) of Kölsch beer. (Photo credit: Wikipedia)

You can buy a bottle of wine at a reasonable price and a whole bottle of liquor can last for ages. This may give you false reassurance that you are not continually outlaying money for alcohol. Add up your weekly spend and then work out how much a year your drinking vice is costing you. Social drinking is acceptable but excessive drinking can lead to many health issues, such as liver damage. Heavy drinking can also cause inability to drive a motor vehicle or inability to focus. This may also have an effect on your employment and your close relationships. 

Research has shown it takes approximately two months to break a bad habit. Once that has been accomplished, it is important not to replace the old vice with a new vice. Vices can cause havoc with your pay packet. Adding up how much you spend on cigarettes, alcohol or impulse shopping can be quite a shock. If you need help with a budget plan, Fox Symes can assist you, click here to check out their website. Fox Symes offers solutions to individuals to help reduce credit card debt and can provide valuable advice on consolidating your debt.