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Lesson 6

Setting Financial Goals

Dreams become reality when you write them down and make a plan

⏱️ 13 minutes 📚 Beginner 💰 Goal Planning

What You'll Learn

  • Why written goals are 42% more likely to be achieved
  • How to use the SMART framework for setting goals
  • The difference between short-term, medium-term, and long-term goals
  • How to break big goals into achievable action steps
  • Strategies to stay motivated when progress feels slow
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The Big Idea

A goal without a plan is just a wish. But a written goal with specific steps becomes a roadmap to your future. Don't just dream – plan, act, and achieve.

Why Goals Matter

Goals give your money PURPOSE. Without goals, money comes in and money goes out without meaning. With goals, every dollar has a job moving you toward your dreams.

Without Goals

  • Spend money as it comes
  • Always wondering "where did it go?"
  • Feel stuck and directionless
  • Easily distracted by impulses
  • Years pass without progress

With Clear Goals

  • Every dollar has purpose
  • Track progress toward dreams
  • Feel motivated and focused
  • Easy to say no to distractions
  • Achieve things others think impossible

Research shows that people who write down their goals accomplish 42% more than those who only think about them. Why? Written goals engage different parts of your brain and create a psychological commitment.

The SMART Goal Framework

Not all goals are created equal. Vague goals rarely get achieved. SMART goals have the highest success rate:

S.M.A.R.T. Goals

Specific: Exactly what do you want to achieve?

❌ Bad: "Save money"

✅ Good: "Save $1,000 for emergency fund"

Measurable: How will you track progress?

❌ Bad: "Save some money each week"

✅ Good: "Save $20 every Friday"

Achievable: Is it realistic given your situation?

❌ Bad: "Save $10,000 in 1 month" (on $500/month income)

✅ Good: "Save $1,000 in 12 months" ($85/month)

Relevant: Does it align with your values and priorities?

❌ Bad: Saving for expensive car when you need education funds

✅ Good: Aligns with your actual life goals

Time-bound: When will you achieve it?

❌ Bad: "Save $1,000 someday"

✅ Good: "Save $1,000 by December 31, 2025"

Types of Financial Goals

Short, Medium, and Long-Term Goals

Short-Term (0-1 year) Quick Wins Build $500 emergency fund, Pay off credit card, Save for concert tickets
Medium-Term (1-5 years) Building Blocks Save for car, Build full emergency fund ($3,000), Save for college
Long-Term (5+ years) Big Dreams Buy house, Retirement savings, Start business, Financial independence

You need ALL THREE types! Short-term goals keep you motivated with quick wins. Medium-term goals give you something meaningful to work toward. Long-term goals ensure your future security.

📖 Tucker's Tale: The Concert Goal

My friend Jordan wanted to see their favorite band in concert. Tickets were $150, but Jordan only had $20 saved.

Jordan's SMART Goal Plan:
  • Specific: Save $150 for concert tickets
  • Measurable: Track savings in jar, $10 at a time
  • Achievable: Earn $30/week from yard work
  • Relevant: Really wants to see this band!
  • Time-bound: Tickets go on sale in 8 weeks

Action Steps:

  1. Week 1-2: Do extra yard work, save $60
  2. Week 3-4: Skip eating out, save another $40
  3. Week 5-6: Sell old video games, save $35
  4. Week 7-8: Final yard work push, save $35
  5. Total: $170 saved! (Extra $20 for snacks at concert)

The Lesson: Jordan achieved the goal because it was SMART and had specific action steps. Vague "I hope I can go" wouldn't have worked. Clear plan + action = success!

Breaking Down Big Goals

Big goals can feel overwhelming. The secret is breaking them into smaller pieces:

Example: $5,000 College Savings Goal

Sounds impossible? Let's break it down:

  • $5,000 in 5 years = $1,000/year
  • $1,000/year = $84/month
  • $84/month = $21/week
  • $21/week = $3/day

Suddenly "$5,000" becomes "skip one $3 coffee per day." Much more manageable! Same goal, different perspective.

The Milestone Method

For any big goal, create milestones at 25%, 50%, 75%, and 100%:

Goal: Save $2,000 for car

  • ✓ Milestone 1: $500 (Celebrate with movie night!)
  • ✓ Milestone 2: $1,000 (You're halfway! Treat yourself to favorite meal)
  • □ Milestone 3: $1,500 (Almost there! Plan celebration)
  • □ Milestone 4: $2,000 (DONE! Buy the car!)

Celebrating milestones keeps you motivated and makes the journey enjoyable, not just the destination.

🎯 Key Takeaways

1

Written goals are 42% more likely to be achieved. Don't just think about goals – write them down where you'll see them daily.

2

Use the SMART framework. Specific, Measurable, Achievable, Relevant, Time-bound goals have the highest success rates.

3

Balance short, medium, and long-term goals. Short-term goals keep you motivated. Long-term goals secure your future. You need both.

4

Break big goals into small steps. Any goal becomes achievable when broken into daily or weekly actions.

5

Celebrate milestones along the way. Don't wait until the end to feel good about progress. Small celebrations fuel continued effort.

📖 Biblical Wisdom on Goals and Planning

"Write the vision; make it plain on tablets, so he may run who reads it."

— Habakkuk 2:2

God instructs us to WRITE our vision down clearly! This isn't just good advice – it's a biblical principle. Written goals create clarity and urgency. They transform vague wishes into concrete plans that can be acted upon.

"Commit to the LORD whatever you do, and he will establish your plans."

— Proverbs 16:3

Notice it says "your plans" – God expects us to make plans! He doesn't want us passive, waiting for things to happen. We plan diligently, then commit those plans to Him, trusting Him to guide and establish them.

💭 Think About It

  1. What's one financial goal you've thought about but never written down? Why haven't you written it?
  2. Think of a goal you achieved in the past. Was it SMART? What helped you succeed?
  3. If you could achieve any ONE financial goal in the next year, what would it be? Make it SMART right now.
  4. What's the difference between "I want to save money" and "I will save $50 every Friday for the next 6 months"? Which is more likely to succeed?
  5. How could celebrating small milestones help you stay motivated on a long journey toward a big goal?

✅ Take Action

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Write Three Goals Right Now

Write one short-term (this year), one medium-term (1-5 years), and one long-term (5+ years) financial goal. Make them SMART. Put them where you'll see them daily.

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Create an Action Plan

Take your short-term goal and break it down into monthly, weekly, and daily actions. Use the calculator at marks.money to figure out exactly how much to save per month.

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Set Up Visual Tracking

Create a progress chart or thermometer for your main goal. Color in progress each time you make a step forward. Put it where you'll see it every day.

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Share Your Goal

Tell one person you trust about your main goal. Ask them to check in with you monthly. Accountability increases success rates dramatically!