Is Goal-Setting Still Relevant?
It’s always nice in January or early February to reflect on what happened last year and craft your plans for the new year.
Given the pandemic that we continue to face, your underlying question may be this:
Is goal setting still relevant?
Undoubtedly, the answer is YES. If we do not have a roadmap for where we are going or where we feel God is leading us, we may become aimless and unmotivated.
Nonetheless, there is a fine line between having a financial plan and clinging so tightly to the plan — leaving little room for error or surprise. Change is one certainty of life, and it’s important to adapt to changing situations. You can adapt financial goals as life circumstances evolve. In fact, it’s a requirement to build wealth as a family.
Goal-Setting Alternative
Last week, I concluded a mastermind group of like-minded creative professionals called Portfolio People. Led by Jeff Goins and Sarah Robinson, this was such a special group; I didn’t want it to end!
This is my biggest lesson from the 2020 mastermind:
Goal-setting does not have to be rigid.
Jeff assigned the mastermind group an unusual project in December. He urged us to write a congratulatory letter to ourselves dated one year later. The letter included both personal and professional accomplishments. My letter highlighted physical and spiritual health, quality time with my husband and kids, and a few business initiatives.
Writing this letter felt like a breath of fresh air. I encourage you to try it, too. Although it is early February, you still have eleven more months of 2021.
However, a letter may not suit your personality. Below are some traditional goal-setting tips.
Foundation
You need a firm foundation before starting on the goal-setting process, and the foundation is comprised of three key concepts:
1. Begin with an abundance mindset that is focused on possibilities rather than limitations. Recognize that your past isn’t a script for your future.
2. Next, take a long, hard look at your definition of success. Examine your personal and family values.
3. Finally, create a family vision statement. Parents are leaders of their families. It’s wonderful to have a personal development plan for yourself, but please take it one step further and outline the grand vision that all family members should share.
Goal-Setting
Goal-setting is an age-old process, but it’s easy to overlook key steps. Ensure you have the three foundational items in place before you set concrete goals.
Most of us are familiar with SMART goals. They are:
Specific
Measurable
Achievable
Relevant
Time-bound
Familiarity is one thing, but application may be difficult. If you’re serious about reaching your individual and family goals this year, keep reading.
Achievement vs. Habit Goals
First, recognize the difference between habit and achievement goals. Habit goals are regular routines that set you up for success, enabling you to reach bigger aspirations.
Let’s suppose your achievement goal is to learn a second language this year. In that case, you may want to enroll in an online language course and carefully follow the prescribed homework each week. This routine supports the broader achievement goal.
Likewise, assume your 8th grader’s achievement goal is to increase his science grade from “C” to “B” by the end of May. You can encourage your 8th grader to read the science textbook for 10 extra minutes each day – a nice habit that improves your child’s chance of success.
Now, for a final example. Suppose you and your spouse have decided that you’d like to cut your family’s food expenditures by $100 monthly. You can adopt any of the following habits and encounter a similar result:
Option 1.
Eat-in two additional times each month if you’d normally spend $50 on dinner.
Option 2.
Eat-in four additional times monthly if you’d normally spend $25 dining out.
Option 3.
Actively clip coupons, only buy groceries on sale, and forego one meal outside the home.
In each of these examples, the habit goal is the micro-action that enables you to achieve a broader goal.
Don’t Let Obstacles Get in the Way
Alright. You understand the difference between habit and achievement goals. Inevitably, an obstacle will present itself, and you have to figure out a way to move past it.
There are two wonderful books on goal-setting that have been instrumental in my life: Finish by Jon Acuff and Your Best Year Ever by Michael Hyatt. Although they follow a similar theme, the approach and writing styles differ tremendously. Acuff adds humor, plenty of practical examples, and research-backed evidence. Hyatt offers a structured 5-step plan to achieving important goals, based on his popular “Best Year Ever” e-course.
One of the biggest enemies we face during goal-setting is perfectionism. It shows up the day after we get started and then rears its ugly head again when we’re close to finishing. To combat perfectionism, take it from Acuff: make goals fun. If it is painful for you to complete a triathlon because you’re a weak swimmer, run a half-marathon instead. Also remember to celebrate small wins as your habits become consistent. Mini celebrations keep you motivated.
Another potential obstacle to reaching your goals is known as shiny-object syndrome. You pursue one goal but fall behind and then choose the next semi-attractive goal. Instead, focus on one goal at a time rather than trying to work simultaneously on different goals. Mastery is far easier when you intensely concentrate on one or two items instead of three or four. Limit yourself to a maximum of two “high priority” goals each quarter even if you have six to eight annual goals.
One other possible stumbling block is losing sight of our key motivations. Revisit your “why” from the foundation section to reconnect with your original insights and proactively spot stumbling blocks before they occur. If you’re truly open to change, you’ll willingly select goals in life domains that need improvement.
The Best is Yet to Come
Establishing and monitoring individual goals is hard enough. But I’m challenging you to an even greater task: goal-setting for the entire family. Below is the goal-setting process I’d suggest for your family.
1. Believe the Possibility.
Start with an abundance mindset and identify limiting beliefs that may have held you or other family members back in the past. Consider developing a simple mantra that you repeat verbally each day, such as “We are worthy of a brighter future.” Even if you’ve struggled with something in the past, don’t let that hold you back from achieving this goal.
2. Design Your Future.
Work through the SMART framework, establishing both achievement and habit goals. Focus on one or two goals each quarter.
3. Determine Your Why.
Figure out why this goal is truly meaningful to your family. Will it help you spend more time together? Will you and your spouse enjoy financial freedom one or two years earlier? Does this goal enable your family to take a well-deserved vacation? Reconnect with your original motivation.
4. Cut the Goal in Half.
What if your family’s original goal is truly out of reach? Would cutting the goal in half (or changing the timeline) make the difference between achieving that goal and letting it disintegrate? Goals can be revised.
5. Use Data to Celebrate Progress.
Know ahead of time what rewards you will use to celebrate small wins. Make the incentives meaningful to your family. Utilize a tracking tool to monitor how far you’ve come.
This goal-setting framework can be used for individual and family goals alike. And don’t forget the following quote:
“With God, all things are possible.” – Matthew 19:26
Tactics
Foundational items (i.e. abundance mindset, family values and vision statement) and actionable goals are critical to purposeful living. Do not rush yourself as you go through those exercises; it takes time to contemplate and document the important items. But it’s well worth the effort!
I’d encourage you to explore tactics - actual tools you can use for goal achievement - after you’ve clearly articulated your family’s values, vision, and goals.
At WorthyNest®, we guide parents through important financial decisions using a values-based approach. Contact us to explore a one-on-one relationship.