Can’t believe it’s already December! Some of you must be setting your 2022 goals already by this time. I have seen a lot of people become overwhelmed and stressed about setting their financial goals, frequently asking themselves, “Am I doing this right?”, “Will this work for me?”, or even, “What if I don’t achieve this?”.
I had a very insightful conversation with Heather Doran, a business finance and money mindset coach, about how to set measurable financial goals in your business while removing the negative feelings towards it.
Heather explains whether a person chooses to create either short or long term financial goals is linked to how normally their brains think and the patterns they’ve learned throughout their lives. Some are comfortable with big dreams and looking at the whole picture while others are more comfortable with very specific and detailed planning.
Planning your long term financial goals typically involves looking at least one year ahead. For some, having this huge vision overwhelms them and finds it difficult to let these visions come into play because of their fear around it. You have to be really careful when you're doing long-term visioning so that you have large overarching goals, but not too specific when it comes to the long-term goals.
One example is when you’re wanting to scale your hundred thousand dollar business to a million dollar business. There are typically a lot of steps or more steps that have to happen that are probably going to happen over the course of a couple of years. It’s good to anchor yourself to maybe setting up a goal of making your profit 10X or any larger number for an amount of time. Just remember to create a doable goal so as to not overwhelm yourself in the long run.
Creating your financial goals have no sure-fire formula. Where you are at life right now and major life changes can ultimately alter the dynamics of achieving your long term goals. One question we tend to forget to ask ourselves when setting up these goals is “why do I want this?”. There is absolutely nothing wrong with reassessing what cycle or season in your life or business you are in and change your plans accordingly.
Your business must be able to support you financially, whether it be because you’re planning to get out of a job or maybe buy a bigger house for your family. How can you know if your business is ready to financially support you in these transitions?
It will help to be aware of the tangible and intangible things related to your goal and looking at the things that have been working for you and if you need to make shifts within these things to maintain your goals. These are also what we call KPIs or Key Performance Indicators that will make it easier for you to understand or predict your progress. This is where short term goals come into play.
Short term goals are usually specific goals you set for yourself and your business that are leading to your ultimate goal. These typically are the under-one-year goals. For example, some people would like to create a three-day work week for themselves. Your short-term goals could be as specific as the things you will need to accomplish daily in order to achieve the three-day work week.
It’s surprising to note that the actual word ‘goal’ can be overwhelming or triggering to some. One big step you need to take in order to set your financial goals is to acknowledge the feeling you have towards the word ‘goal’ and work around using a different term for it so that it doesn’t feel heavy and stressful.
Doing some work around envisioning your goals is also really helpful for you. Give yourself permission to take the numbers away and focus on what your goals can give you once you achieve them. For some, it can be the freedom that money gives you or even having more time for yourself and your family can be rewarding. For this, allow yourself to put yourself first more than anything else and create that vision for you.
Ultimately, your perspective about reaching your financial goals is very important. It is about setting your financial goals that feels good for you and remembering that these decisions or goals are not permanent because nothing ever is. It is absolutely okay to change your mind, maybe reframe your financial goals or even totally change it and start fresh.
Another side of this perspective is your mindset towards achieving your goals. We tend to be so hard on ourselves when we don’t reach 100% of our goals without even acknowledging the progress we have made. Regardless of how little or big that progress is, acknowledge that you are moving forward, Impactful One.