For the last decade or so, many coaches and financial planners have encouraged clients to connect their financial planning with their personal life goals. This has been a helpful journey to plan better, engage more with a budget and stick to the plan. But in recent months, with life continually being so unpredictable and so many people struggling to meet the goals they set years ago, it’s possible to wonder if there is still value in setting goals.
Well, the short answer is YES!
There has always been, and remains, a strong correlation between self-motivation, personal goals and achievement. We all have an innate drive to achieve something in life; whether it’s about leaving a legacy or making a difference, our sense of value is linked to being able to achieve goals.
With the disruptions of recent years, we shouldn’t abandon our goals or our drive to set and achieve goals. What’s needed is a reinforcement of the benefits of setting goals, and perhaps new ways to understand what we value, what excites us and what will motivate us to connect more personally and authentically with our goals.
Ultimately, the more we achieve, the more self-confident we become, and as self-confidence rises so too does the ability to achieve more. The opposite is also true: when we struggle to achieve our goals, self-esteem and confidence can suffer, affecting our motivation to achieve more.
This is why it becomes essential to keep revisiting the authenticity, and achievability, of our goals. Every time life changes, it will impact how achievable a goal is. For example, if we have a goal to run 5km in under 30 minutes by the end of the year (a health and fitness goal), but then fall sick for several weeks, we may need to push that goal back. Or, we may hit that goal several months earlier than planned, and find that we can realign our goals with a higher level of physical fitness.
The same might apply to a financial goal of clearing our credit card debt by the end of the year. If we lose our job, a major client, or don’t receive the salary increase we had budgeted for, we may need to realign that goal to something that is more achievable. However, we might be able to change our spending habits, or identify additional sources of income and keep within our goal range.
This is because personal goals can provide long-term direction and short-term motivation, and it’s also why there is still so much value in setting goals. Even if life seems to have completely fallen apart at the seams, it’s still important.
All that changes is the parameters of achievability, and this is what we have to keep in check. This is also why it’s valuable to have a personal financial planner who can help you recognise blind spots and act as an impartial sounding board for setting goals and making big decisions.
At SFP, we know that every financial decision is linked to a life decision. Our motivation is to help you see the connections and make healthy decisions that lead to better life and better financial decisions.