A few weeks ago, I wrote a post about goal-setting for success. I outlined some basic questions to consider as part of the goal-setting process to set your “big” goals for the year.
Now that you’ve established what your big goals are, it’s time to set your small goals that will stem from the big goals. Let’s take a look at the original goal I used in the last post:
Have $12,000 in my savings account at the end of 2019 by allocating $1,000 each month from my take-home pay.
We’ve already established this goal is S.M.A.R.T. It’s specific, you know how to measure it, and you’ve even established a timeline. Now let’s break that goal down into smaller goals to help you reach the big one.
If you intend to save $1,000 each month to reach your goal, you need to determine how you’ll save that $1,000. How will you ensure that you have that $1,000 to allocate each month in addition to your planned (and sometimes unplanned) expenses? Break it down by month (or even by week) to help you stay on track.
January: Save $1,000 this month by not eating out.
February: Save $1,000 this month by putting my tax refund into savings.
March: Save $1,000 this month by not shopping for clothes.
April: Save $1,000 this month by not having drinks out with friends for Friday happy hour.
Setting up a budget weekly can also help you figure out how you’ll save that $1,000. The most important thing is that you track your progress on a consistent basis. Reaching the smaller goals will give you the motivation to keep striving for the big goal you set for the year. Find a system that works for you and it will help set you up for success.