Comments on: Take Control of Your Finances Part 7: Set Goals http://www.consumerismcommentary.com/2008/12/08/take-control-of-your-finances-part-7-set-goals/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 21 Nov 2009 16:42:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Flexo http://www.consumerismcommentary.com/2008/12/08/take-control-of-your-finances-part-7-set-goals/#comment-186784 Flexo Sat, 20 Dec 2008 15:16:04 +0000 http://www.consumerismcommentary.com/?p=4753#comment-186784 The Number is one of my favorite financial books. I'm not denying the importance of shorter term goals, but long-term goals and missions should be set first to give those short-term goals direction and context. Part 8 addresses aspects of short-term savings goals and these tips for choosing and achieving a purpose contains some suggestions for relating short-term goals to a broader view. The Number is one of my favorite financial books. I’m not denying the importance of shorter term goals, but long-term goals and missions should be set first to give those short-term goals direction and context. Part 8 addresses aspects of short-term savings goals and these tips for choosing and achieving a purpose contains some suggestions for relating short-term goals to a broader view.

]]> By: David http://www.consumerismcommentary.com/2008/12/08/take-control-of-your-finances-part-7-set-goals/#comment-186783 David Sat, 20 Dec 2008 14:44:20 +0000 http://www.consumerismcommentary.com/?p=4753#comment-186783 I agree that SMART goals are too short-sighted, but I feel like it's just has bad to have the long term goal (of whatever it is that brings fulfillment to your life) without a road map to get there. I feel like you need to balance the long and short term if you want to achieve your goals. As an example, if my long term goal/purpose is to start and run a charity, my shorter term goals might be to retire from the workforce early by saving and investing so much money every month. If you don't have both parts - the what and the how - it's likely to fail. You may want to check out "The Number", by Lee Eisenberg. It's a book devoted to a lot of the questions you ask above. It tackles how to decide what it is you really want out of life, and being realistic about what you need to retire and live a life of fulfillment.. Its focus is really on how to figure out what you want to do when you get there. It's arguably aimed at an older audience (those preparing to retire), but I think it's good for younger readers too because it gives them a sense of the long term purpose that you mentioned. It helped me realize that even with my "long term" outlook on personal finance, I hadn't even thought about what I was going to do when I retired. I agree that SMART goals are too short-sighted, but I feel like it’s just has bad to have the long term goal (of whatever it is that brings fulfillment to your life) without a road map to get there.

I feel like you need to balance the long and short term if you want to achieve your goals.

As an example, if my long term goal/purpose is to start and run a charity, my shorter term goals might be to retire from the workforce early by saving and investing so much money every month. If you don’t have both parts – the what and the how – it’s likely to fail.

You may want to check out “The Number”, by Lee Eisenberg. It’s a book devoted to a lot of the questions you ask above. It tackles how to decide what it is you really want out of life, and being realistic about what you need to retire and live a life of fulfillment.. Its focus is really on how to figure out what you want to do when you get there.

It’s arguably aimed at an older audience (those preparing to retire), but I think it’s good for younger readers too because it gives them a sense of the long term purpose that you mentioned. It helped me realize that even with my “long term” outlook on personal finance, I hadn’t even thought about what I was going to do when I retired.

]]> By: Dawn http://www.consumerismcommentary.com/2008/12/08/take-control-of-your-finances-part-7-set-goals/#comment-186616 Dawn Wed, 10 Dec 2008 15:55:12 +0000 http://www.consumerismcommentary.com/?p=4753#comment-186616 Wow, great post. "Money is not the goal; money is only a tool that can be used to help you reach real goals." I never really thought of it this way, all my goals were cash bases. "I want to have that salary, that much in an E-fund, afford that car and payoff that" etc. This is very good point; I need to sit down and write what exactly my life goals are. Where I want to be before I can make those financial goals. Wow, great post.

“Money is not the goal; money is only a tool that can be used to help you reach real goals.”

I never really thought of it this way, all my goals were cash bases. “I want to have that salary, that much in an E-fund, afford that car and payoff that” etc.

This is very good point; I need to sit down and write what exactly my life goals are. Where I want to be before I can make those financial goals.

]]> By: Andrew Chilton http://www.consumerismcommentary.com/2008/12/08/take-control-of-your-finances-part-7-set-goals/#comment-186609 Andrew Chilton Tue, 09 Dec 2008 18:59:41 +0000 http://www.consumerismcommentary.com/?p=4753#comment-186609 There are lots of things I want to do, to accomplish. Certainly one of my main goals is so that I don't have to do the daily grind and that I can enjoy my short stint on this lovely planet of ours a little more. But it's not just about that. I also know that at 40, I am still in my prime and that I'm still going to be too useful not to work at all. That would be a waste. I'll definitely end up working part time but hopefully for something I find more fulfilling. There are various organisations I have my eye on that would probably be happy to use some of my skills so I'm sure I'd end up giving a fair bit of my time away. Plus there are a few hobbies I enjoy too! Biking, photography and woodwork spring to mind. There are lots of things I want to do, to accomplish. Certainly one of my main goals is so that I don’t have to do the daily grind and that I can enjoy my short stint on this lovely planet of ours a little more. But it’s not just about that. I also know that at 40, I am still in my prime and that I’m still going to be too useful not to work at all. That would be a waste.

I’ll definitely end up working part time but hopefully for something I find more fulfilling. There are various organisations I have my eye on that would probably be happy to use some of my skills so I’m sure I’d end up giving a fair bit of my time away.

Plus there are a few hobbies I enjoy too! Biking, photography and woodwork spring to mind.

]]> By: Goalhunter http://www.consumerismcommentary.com/2008/12/08/take-control-of-your-finances-part-7-set-goals/#comment-186603 Goalhunter Tue, 09 Dec 2008 15:16:20 +0000 http://www.consumerismcommentary.com/?p=4753#comment-186603 Even Flexo's question is almost looking for another goal. A different question might be what happens during the first 40 years? You might get caught into "wasting" 40 years to achieve something. That is, always looking forward, then you get there, then you just pick something else to look forward to. An endless series of goals makes it tough to reap the rewards because you just reinvest everything good towards the next goal. Example: You want to go to a concert but it costs $100. So you don't go, investing the $100 into your monthly "save 10%" surplus goal. You take those surpluses and invest them into your "index fund strategy to grow at 8% per year". After awhile your money grows and you take it to buy some bigger investment and achieve a bigger goal. At the age of 40 the sum of all the denials and strategies will cover your salary so you quit your job. Now you have a huge surplus of time so you have to make yourself some other goals that will "effectively" use the time. Even Flexo’s question is almost looking for another goal. A different question might be what happens during the first 40 years? You might get caught into “wasting” 40 years to achieve something. That is, always looking forward, then you get there, then you just pick something else to look forward to.

An endless series of goals makes it tough to reap the rewards because you just reinvest everything good towards the next goal.

Example: You want to go to a concert but it costs $100. So you don’t go, investing the $100 into your monthly “save 10%” surplus goal. You take those surpluses and invest them into your “index fund strategy to grow at 8% per year”. After awhile your money grows and you take it to buy some bigger investment and achieve a bigger goal. At the age of 40 the sum of all the denials and strategies will cover your salary so you quit your job. Now you have a huge surplus of time so you have to make yourself some other goals that will “effectively” use the time.

]]> By: Flexo http://www.consumerismcommentary.com/2008/12/08/take-control-of-your-finances-part-7-set-goals/#comment-186602 Flexo Tue, 09 Dec 2008 14:38:31 +0000 http://www.consumerismcommentary.com/?p=4753#comment-186602 Andrew: What will retiring at 40 help you accomplish? Is your ultimate goal just not to work or is there something you want to do once you leave the corporate world? I think retiring at 40 is a great time-based goal, but what happens next? Andrew: What will retiring at 40 help you accomplish? Is your ultimate goal just not to work or is there something you want to do once you leave the corporate world? I think retiring at 40 is a great time-based goal, but what happens next?

]]> By: Andrew Chilton http://www.consumerismcommentary.com/2008/12/08/take-control-of-your-finances-part-7-set-goals/#comment-186599 Andrew Chilton Tue, 09 Dec 2008 11:02:53 +0000 http://www.consumerismcommentary.com/?p=4753#comment-186599 I have done two of your suggestions, I have a long term goal and one which isn't 'SMART' (though I do kinda like SMART goals). It all comes down to this: Retire at 40 :-) That's it, no more, no less. Not even any kind of rule about how much money I'd need. Of course, along with that, I'd need to pay off the mortgage by then so that determines a particular monetary factor but it'd have to be something above that. Anyway, it's going to be interesting but I'm sure I'll make it. I have done two of your suggestions, I have a long term goal and one which isn’t ‘SMART’ (though I do kinda like SMART goals). It all comes down to this:

Retire at 40 :-)

That’s it, no more, no less. Not even any kind of rule about how much money I’d need. Of course, along with that, I’d need to pay off the mortgage by then so that determines a particular monetary factor but it’d have to be something above that. Anyway, it’s going to be interesting but I’m sure I’ll make it.

]]> By: Craig http://www.consumerismcommentary.com/2008/12/08/take-control-of-your-finances-part-7-set-goals/#comment-186592 Craig Mon, 08 Dec 2008 21:34:02 +0000 http://www.consumerismcommentary.com/?p=4753#comment-186592 I like how you take the SMART goal concept and twist it into more of a life coaching aspect. I agree, yes everyone has goals, whether financial or not. But the goal shouldn't just end there. You should work towards the goal, and then some. Get your cherry on top you can say. For example with me, I am trying to set aside a small account to slowly build up. I would like to then go on a vacation and see a bit of the world, experience a new culture and try new foods. I like how you take the SMART goal concept and twist it into more of a life coaching aspect. I agree, yes everyone has goals, whether financial or not. But the goal shouldn’t just end there. You should work towards the goal, and then some. Get your cherry on top you can say. For example with me, I am trying to set aside a small account to slowly build up. I would like to then go on a vacation and see a bit of the world, experience a new culture and try new foods.

]]> By: Goalhunter http://www.consumerismcommentary.com/2008/12/08/take-control-of-your-finances-part-7-set-goals/#comment-186590 Goalhunter Mon, 08 Dec 2008 20:47:44 +0000 http://www.consumerismcommentary.com/?p=4753#comment-186590 I like your "alternative" take on goals. Goals are important to reach an endpoint, but are endpoints really that important? I think getting to the goal should be fun too especially if it's something long-term like a retirement goal. Involving people and generating a spirit helps a lot too. Makes us realize that life is not just about getting to where you want, but there are plenty of other people who can be swept up in your spirit. That's why I like some of the bloggers like you who generate lots of positive vibes. I like your “alternative” take on goals. Goals are important to reach an endpoint, but are endpoints really that important? I think getting to the goal should be fun too especially if it’s something long-term like a retirement goal. Involving people and generating a spirit helps a lot too. Makes us realize that life is not just about getting to where you want, but there are plenty of other people who can be swept up in your spirit. That’s why I like some of the bloggers like you who generate lots of positive vibes.

]]>