Achieve Your Financial Goals – Real-world Methods and Tips This article provides a guide to setting financial goals that are aligned with your life goals to increase your chances of success. It focuses on defining your life goals and translating them into meaningful financial goals, creating a step-by-step financial plan, tracking your progress, and reviewing and updating your plan regularly. It includes real-world examples and effective tools, such as recommended financial apps and books, to help readers achieve their financial and life goals with confidence and efficiency.
“Why have you never achieved your goal of saving hundreds of thousands or millions?”
Many people have ambitious financial goals, such as saving hundreds of thousands or millions of baht, but no matter how hard they try, they often fail. Especially when it comes to saving money, the struggle to achieve the goal seems to be an uphill battle.
You might think it’s a discipline issue, but it’s actually about setting the right goals.
The real problem is not just about money.
When we set a financial goal, such as saving 100,000 baht by the end of this year or saving 1,000,000 baht in 3, 4 or 5 years, we feel excited. We start saving money diligently at first, but eventually we get tired and give up.
What’s the problem? It’s an unclear goal. What we really need is a clear life goal.
Why do you need to save 100,000 baht in one year?
Why set a goal to save a million in 3 years? It’s not just a number, it’s the purpose behind it.
Consider these life goals:
- Further study in the next two or three years to advance your career or start your own business.
- Buying a home in the next three years, requiring a 10% down payment for the family’s first home.
- Planning a wedding in the next two or three years, for example.
These goals are what really motivate us. They’re not just numbers, they’re important steps in our life journey.
Example: Ann has a dream to open her own cafe at home. She works full-time and sets a goal to save 50,000 baht in two years. It was difficult at first, but the desire to create a better future for her family motivated her. Today, Ann has a cafe at home and the business is doing well. This is considered a new life goal, a financial goal that drives her financial plan.
The Power of “Powerful Purpose”
This idea is called “power goals.” They are goals you truly want, goals you can’t afford to fail at. Achieving them gives you a sense of true pride and happiness.
Measuring True Happiness
True happiness is not just the goal, but the journey and the reason behind it. When you think about achieving your goal and it brings you to tears or a smile, then you have a “powerful goal.”
From my observation, goals that have “power goals” tend to involve doing things for the people we love.
Examples of “powerful goals”:
- Buying a Home: You want to make your parents proud, especially if your family has been renting their whole life. You dream of your mom renovating your house or your dad exercising in front of your house.
- Starting a Business: You want to save 100,000 baht to start your first business. Aim for a better life for your wife or children.
- Building an emergency fund: You’ve been through a lot during the COVID lockdown, and you want to save 6 months of emergency money over the next two years to prevent life from going backwards.
These goals are more meaningful and deeper than the vague financial numbers that many people often set as goals.
Step-by-step guide to setting life and financial goals
- Set your life goals: What kind of life do you want to live? Write it down.
- Convert to financial goals: Calculate how much money you need to support that kind of life.
- Create a plan: Break down your financial goals into manageable steps.
- Track your progress: Use an app or tool to track your progress and stay motivated.
- Review and improve: Review your goals regularly and adjust your plan as needed.
Recommended book to read: THE PSYCHOLOGY OF MONEY – Psychology about money
Set clear life goals first
To achieve financial success, start by setting clear life goals. Ask yourself, “What kind of life do I want to live?” Then calculate how much money you need to support that kind of life.
Instead of setting a goal of making a million dollars, ask yourself what you want that money to do with it. This will give you more energy and motivation to your goal.
Life goals lead to financial goals
- Life Goals: Define the Life You Want
- Financial Goals: Calculate the financial support needed for that life.
- Learning Goals: Identify what you need to learn and do to reach your financial goals.
When you approach it this way, achieving your learning goals will help you achieve your financial goals, which will ultimately give you the life you want.
Overcoming Obstacles
Life isn’t always smooth sailing, and achieving your goals can be challenging. If you don’t reach your goal, don’t think of it as failure. Review your approach, adjust your plan, and move forward.
When you encounter obstacles, take time to reflect on what went wrong, change your strategy if necessary, and stay focused. Remember, persistence is key.
Conclusion
Setting financial goals that align with your life goals is the key to success. Setting meaningful and inspiring goals helps you stay focused and energized to move forward. Continually updating and reviewing your financial plan will help you stay confident in your journey towards your goals.
Remember that success doesn’t come just from luck, but from determination and hard work. If you have a dream of starting your own business, these tips will be the tools to help you confidently travel to success. Start taking action today and watch your dream become a reality. Good luck to all who are following this dream!
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