Any inspirational book or seminar will tell you that you need to write down clear, concise and measurable goals in order to successfully plan your future. Almost any life goal has a financial aspect to it.
You could have a goal to have a million dollars in investments, but it’s more exciting to incorporate a vision of your life such as, “I need to save $50,000 to be able to quit my job and live in Belize for a year so I can write a best selling novel.”
Setting Measurable Goals
You can keep this vision in your mind so it’s less painful when you walk past the shoe sale and bring your bag lunch to work. I believe money should be a tool, not the ultimate goal.
Related: How To Set Short Term Goals
That said, my own goals are actually quite modest. For the next year I will:
- Maximize my TFSA contribution. This account is part of my long-term retirement strategy so I plan to contribute the max every year.
- Begin minor renovations on my 30+-year-old house that seriously needs some updating. This not only will increase its value, it will make it more attractive to me and hopefully make the house more saleable if / when we decide to move.
- Visit my elderly parents more often. They still live in their own home, but in another province and I want to check up on them in person every three or four months or so to see if everything is OK.
- I currently work part-time so I don’t technically get paid vacations. I do however get vacation pay on my bi-weekly paycheques. I am depositing this amount into my savings account to reduce the sting of not only paying for my holiday, but that I also have no earnings while I’m away.
- I want to take a course or two – perhaps upgrade computer skills and learn a new language for an upcoming trip to Europe (part of my medium-term goals).
These should all be achievable with a little more work and motivation and a little less procrastination to keep me on track. How do you set measurable goals for yourself?