Now let's talk about your core values and set some brand new financial goals!
But first, in order to set your financial goals you need to determine your core values.
So what are your core values?
Your core values are the things that are most important to you. In other words, to be able to live the life of your dreams, you need to know what your core values are. Aligning your dreams to your core values will help you prioritize and identify what really matters most to you.
- If one of your dreams is to travel around the world, then one of your core values is experience.
- If you want to build wealth for you and your family (don't we all!) then one of your core values is financial security.
- If you want to build a school for less privileged children then another core value of yours is giving back.
Once you've identified your core values, you want to prioritize them in the order in which you'd like to achieve them.
Setting your financial goals
As you start to think of your financial goals, use your core values as a baseline for creating those goals. You also want to ensure the goals you create are tangible and have a specific time frame and dollar amount associated.
So, for instance, if you value experiences and you want to take a luxury trip, find out the approximate cost of that trip and by when you'd want to take it so you know how much you need to save each month when you plan out your budget. Your goal might sound something like - Save $100 a pay check in my travel account until I get to $1000 for my luxury trip in December.
Similarly, if you value financial security (we all do) then one of your goals might be to save $1,000,000 by the time you retire. Your goal might be something like - Invest in a target date retirement fund and max out my 401K contributions (making no withdrawals) every year until age 65.
Your challenge this week is to use the downloadable worksheet on this page to create your core values and financial goals (print multiple copies as needed).
- Start by writing down your core values.
- Next work creating on your overall long term goals
- You then want to take it a step further and create your short term goals for the next year, the next month and the next week and your mid term goal (5 to 10 years) all of which tie back to your overall long term life goals. (You might need to do some math to make sure it all adds up).
1. Long term goal: Save $1,000,000 for retirement.
2. Mid term goal: Save 30% of $1,000,000 in the next 10 years
3. Short term goal: Max out this years retirement contributions and begin contributing to an IRA
- Go at a pace that you are comfortable with. Identifying and writing goals takes time and that's ok! Remember, there are no shortcuts to success. You are planning your dream life.
P.S. Don't forget to share your progress in the Facebook group!
It's week 4 of The 26 week savings challenge!
This week, your savings deposit amount is $15.00
(If you've been consistent with your deposits, this week's deposit will bring your balance to $36!)
- Make your transfer.
- Check off this week's amount on your savings challenge schedule.
- Share your progress in the Facebook group!
Note: This challenge will be on-going throughout this accountability program in addition to your other weekly challenges.