Having an organized budget is important in tracking the current movement of your money. Setting goals, however, will help determine the movement of your money over time.
I ask myself, “Self, what are your financial goals?”
The first thing I hear is, “To keep a roof over my head.”
Apparently, I am connecting my finances with stability, comfort, and dry clothes. These are immediate needs that extend indefinitely into the future. They have nothing to do with the fact that the only thing I have to my name, financially speaking, is debt. I decide to be more specific.
“Self, what would you like your financial assets to look like in ten years?”
Bingo. Now I’m rattling off a wish list: A house, maybe two, definitely something lakefront, energetically self-sufficient. A car, nice hybrid, roomy, wide field of vision. Financial involvement in several non-profit outreach organizations, charities, and/or benefits for the expansion of connected awareness in human beings. A college savings account for my four year old daughter, which becomes a new boat if she decides to opt out. A high interest retirement fund. Student loans paid down to zero.
This exercise shows me several things. Instead of making immediate steps toward the financial picture of my dreams, I am preoccupied with maintaining the financial picture of my present moment. How much can I spend this month without going bottom up? I am not thinking two, six, or even twelve months in advance. I am leaving my financial future to chance.
No longer. Thanks to Cash Course, you and I can organize a budget and set goals. We can make money like honey. Bee S.M.A.R.T.!
Here are some free tools to help you out: Savings Goal Worksheet, Monthly Goal Tracking Calendar.
Goal Figure.
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