Most Common Financial Goal Setting Mistakes to Avoid

When it comes to financial freedom, goal setting is a must.  The goals you set will give you a sense of direction when it comes to how you handle your finances and will be the building blocks of your success.

By having goals, you allow your mind to focus on a target and help you become wise when it comes to your financial affairs, instead of just feeling apathetic and wasting money here and there.

But goal-setting is not as easy as it sounds.  One accounting blog even said that it’s both a science and an art.  So in order to help you set goals effectively, here are the most common financial goal setting mistakes that you should avoid.

Not writing down your goals.

Sure, you may know what you want to do with your money or where you want it to go but a goal that stays in your mind alone, is hard to achieve.  Before 2018 comes, set financial goals and write it down.  The simple act of putting your goals on a piece of paper gives you a more clarified vision of your financial aspirations and increases the chances of it to be achieved.

Having too many goals.

When you first begin setting goals, it’s easy to get super excited, leaving you with a long list of goals that will overwhelm you.  Don’t get me wrong, sky is the limit when it comes to dreams.  But having too much might be hard to focus on and keep up with.  So it’s best to just set a few goals for a specific period of time, and work hard to complete them.  Once you tick those off on your list, that’s the time to create new ones and work hard for it again.

Not making your goals specific and measurable.

When writing down your goals, don’t make it vague and too general, like “I want to be rich,” “I want to be better with money,” etc.  Instead, make them specific so you’ll know how to achieve them.  For example, “to save *this amount* by the end of 2017.”  Yes, you need to give yourself a due date.  Give your goals some sort of numbers, percentages and dates.

Your goals aren’t visible.

Okay so you’ve written down your goal in a piece of paper.  But where is that piece of paper now?  Tossed in the trash?  Shoved in a drawer?  Writing them down isn’t just enough, you need to keep them in a spot where you can look at them regularly.  Aside from the fact that they can easily be forgotten and neglected, having visible goals and looking at them every day will help you visualize your future success and abundance, which becomes an inspiration for you to really hustle hard for it.

Not tracking your progress.

It’s not enough to set goals and work on it blindly.  Money management is trial and error, a hit or miss.  So it’s important to review your goals, evaluate your progress and revise them if needed.

“A goal is a dream with a deadline.” -Napoleon Hill

About Toni Marie

Toni is a regular contributing author on Guest Money Blog. In addition to writing about money topics, she also likes to write about relationships and health.
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