Let's talk about your goals

The first edition of my newsletter comes from over 10,000 feet at the top of Berthoud Pass in Winter Park, Colorado. And yes, I brought the Starbucks with me on the hike! Climbing a mountain makes one think about goals...

Visiting with firms whether an RIA, broker-dealer, bank, or insurance company, there are 2 or 3 topics that always seem to come-up. The topic of goals is one of them.

Ever wonder why so many individuals struggle to achieve their financial goals? Recent studies indicate that a significant 92% fail to reach their intended milestones. So, what are the primary stumbling blocks on their financial journeys? Research highlights the following factors:

1. Lack of Specificity: Setting vague goals such as "save more money" is akin to aiming at a moving target blindfolded.

2. Poor Planning: Without a clear roadmap, individuals find themselves as directionless as a GPS without signal.

3. Procrastination: Delaying action undermines financial progress—apologies to Shakespeare for the theft of dreams.

4. External Influences: Unexpected events like a flat tire or tempting sales can derail financial plans.

5. Lack of Accountability: Without external oversight, motivation can diminish after an impulse buy or setback.

To cultivate effective strategies for setting and achieving meaningful financial goals, consider the following steps:

1. Be Specific: Who needs to be involved in this goal? What is the timeline? What does success look like? Individuals who commit their goals to paper are 33-42% more likely to achieve them compared to those who merely conceptualize their goals

2. Embrace the Long Game: Break down ambitious goals into manageable steps, acknowledging that Rome wasn't built in a day.

3. Use Automation Wisely: Leverage technology to automate savings and investments, aligning with behavioral finance principles. Status quo bias can be your friend.

4. Attach Emotional Value: Connect financial objectives with personal aspirations, such as funding a dream vacation or children's education. Intrinsic goals have a much higher likelihood of being met than an extrinsic goal.  

5. Seek Support: Share goals with a trusted confidant or financial advisor to ensure accountability and receive expert guidance.

Remember, the journey towards achieving goals is as significant as the end result. Stay committed, stay focused, and watch your financial aspirations come to fruition.

Visit our site at www.PsychologyofFinancialPlanning.com or contact me directly at www.CharlesChaffin.com

Best regards,

Dr. Charles Chaffin