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To set a financial goal, first draw a two-column table like this:
| Values | Financial goals |
|---|---|
| Write in this column the issues that are really important to you, in all aspects of your life |
Fill in all the financial goals you might want to achieve in 2023 |
Identify your core values when setting financial goals
In the left column: Choose the issues that are really important to you, in all aspects of your life. This exercise helps you answer questions like:
“When I think about relationships, what do I value most?” The answer could be respect, independence, or a stable relationship.
“What do I care about in my career?”. It could be self-control, a sense of challenge to grow, or innovation that propels you forward.
Pick 10 ideas that suit you best, and then narrow them down to 3 to 5 big ideas.
Outline potential financial solutions
In the right column, Fill in all the money goals you might want to achieve in the year of the Rabbit. Whatever you like, no matter how big or small the goal is.
For example, you could list things like: “Set aside a membership fee for yoga class”. Or, “Save enough money to move abroad and become a freelancer”. “Pay off the debt card, then close all the credit cards”. “Save a month of emergency spending money”.
Do your financial goals align with your values?
Now comes the stage of filtering the target list, by comparing them with the core values.
If you wrote: “I want to stop buying so many ready-to-eat foods”. This solution comes from the fact that you want to save money to travel. “Adventures” could be another value you value.
For example, in the “Values” column, the hobby is cooking, cultivating love through home-cooked meals. As such, your goal of reducing ready-to-eat food will be consistent with your budget and values.
Imagine you succeeded
Choosing the right financial goal is difficult, getting to it is even harder.
According to the financial solutions builder, imagine “you” in the future after the goal has been completed, like a year later.
Research has shown that people who care about their future tend to save money better.
“Seeing” yourself successfully achieving your financial goals will help you feel more “real”. You will always remember the reason why you set your goal in the first place: all for a better future for yourself!