3 Qualities of a Meaningful Goal

By
Mike Loo, MBA
April 11, 2018
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Not all goals are equal in their achievability. In fact, 92% of people don’t reach the goals they set.1 While goals can be difficult to achieve, they’re not impossible. However, the best way to set yourself up for success is to set meaningful goals.

A meaningful goal sets itself apart from a standard goal in three main ways.

  1. It’s Specific and Measurable

The more specific your goal, the more likely you are to reach it. According to one study, setting specific goals led to a higher performance 90% of the time.2 The reason for this is fairly simple: the clearer the path, the easier it is to follow it to the final destination.

I hear so many people tell me their goal is to save more, spend less, or build a retirement fund. The problem with these goals is that they lack specificity. Saving more could mean saving $10 per month or $1,000 per month. You can’t track your progress or know if you’re on track toward your goal if you haven’t specified it and you can’t measure your progress.

One of the first things I tell clients is to make their goals as specific as possible. For example, instead of “build a retirement fund,” you can specify it to “build a retirement fund of $100,000.” Finally, make it measurable—”build a retirement fund of $100,000 by age 45.”

  1. It’s Relevant to Your Life

A goal is only meaningful if you’re passionate about it. Those who meet their goals do so not just because they’re hard workers, but because they are passionate about what they want to achieve. Their goals reflect their values and interests, rather than being random or something they think they’re supposed to achieve in life.

For example, some clients tell me they want to build their savings account because they’ve been told that’s what they should do. While true, you likely won’t feel very inspired to save more if you don’t have a reason for it that makes sense for your life.

I tell these clients to think of what having a savings account would mean for them. Would they feel they could sleep better at night? Would a savings account mean they could go on an annual family vacation? If they build a savings account up to a certain amount, could they finally upgrade their unreliable and problematic car?

Whatever your goal, you should be passionate about it and it should be relevant to your life, not what you think you’re supposed to achieve.

  1. Frame it Positively

We’ve all heard about the power of positive thinking, and it translates to your goals, too. We are much more likely to work toward something we want to achieve or do rather than what we want to stop doing or don’t want.

For example, rather than a goal of “stop overspending” or “spend $200 less each month,” frame it in a positive light: “spend more mindfully” or “save $200 each month.” This can help you view saving as a good thing you’re supposed to do, rather than spending as a treat that you no longer should do. It’s easy to reverse any goal, so there’s no excuse not to!

Don’t Go it Alone

The process of setting a goal is just as important as the process of working towards it. Think of your goal as the frame of a house. You can’t build a stable home without the proper foundation and a clear blueprint.

If you’re struggling to achieve your goals or aren’t sure how to set ones that are meaningful, an advisor can help. As an independent financial advisor, my mission is to make a meaningful impact on the lives of my clients and the people they love. I help families make informed decisions with their money and pursue a strong financial future, from setting meaningful goals to guiding them along the path toward the finish line.

Contact me for a no-strings-attached meeting to discuss your goals, how to make them meaningful, and what strategies can help you pursue them. Call my office at (949) 221-8105 x 2128, or email me at michael.loo@lpl.com.

1 http://www.inc.com/marcel-schwantes/science-says-92-percent-of-people-dont-achieve-goals-heres-how-the-other-8-perce.html

2 http://psycnet.apa.org/record/1981-27276-001

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By
Keegan Tanghe, AIF®
November 7, 2017

Don’t we all just love the holidays? Having a nice, large Thanksgiving meal with close family and friends? Unwrapping presents during Christmas or Hanukkah, seeing the big smiles on the young kids and grandkids as they rip open that favorite toy they begged for? It may be pure bliss during the months of November and December, but come January and February, when those credit card statements come in, the stress starts to set in.

According to the article here,   the average person takes more than five months to pay off that holiday debt. Many more carry that into the next holiday season, hence carrying it indefinitely and having it snowball out of control. Many people just make the minimum payment on credit cards throughout the year, and then when the holidays come about, go crazy with buying up everything, their balance goes up, and so does that minimum payment, which they soon cannot afford to pay. Defaults on credit cards and people trying to do balance transfers or debt consolidation soon become the norm and the house of cards (literally) soon falls.

44% of people surveyed stated that they were stressed out because of that extra holiday debt. Among all age groups, Millennials were most likely to go into debt around the holidays. People ages 24-35 were most likely to say they went into debt this holiday season with a rate of 14.3%. With the exception of 45-54-year-olds, the likelihood of going into debt decreased with age. Seniors were least likely to say they went into debt, with a rate of 7.6%.

So how can we mitigate or eliminate this holiday debt altogether?

Start a holiday-saving account: Set aside a holiday or Christmas budget at the beginning of each year! The problem that many people run into is that they do not set a holiday season budget and just spend, spend, spend. We have many clients who save anywhere from $50-200/month starting in January, so that they have their full budget come the 4th quarter. Or, if you are out shopping throughout the year and see a great sale on something that a family member or close friend would like, feel free to buy it, to pace yourself. If it’s within the budget, you should be ok.

Change your tax withholdings: It’s also a proven fact that many people over-pay their taxes throughout the year, over-withholding on their paychecks. The average person pays their amount of taxes by the spring or summertime, and the rest of the year is just spent paying more to Uncle Sam, lining his pockets. We have had many clients who come through our office in the 3rd or 4th quarter, and after we look at their tax returns for the previous year, as long as everything is a constant, we ascertain that they have already paid all of their taxes for the year. They can then increase their withholdings on their paycheck, thus bringing in more income monthly, to allow them to pay for the holiday’s cash. Solution: no post-holiday blues. Then, come January, we would review the client’s situation again, many times working alongside their CPA, to help them get to more of a point of breaking even or getting just a small tax refund back at tax time. This would allow them to better plan out their budget for the year.

Can you change your schedule: Other things to consider to have a credit card-free holiday is to work overtime, if your job allows it, or if you get a bonus throughout the year, to set that aside for the holiday season. But don’t count on it, as you can’t always rely on bonuses, commissions, or pay raises to occur when you want them to.

If you are a people-person and don’t mind strangers in your car, consider driving for Lyft or Uber. I believe they offer tiered bonuses if you complete a certain amount of rides during your first 30 days of working and always have promotions going on. That’s an instant quick bonus for one or two months of work. Many retailers, as well as Amazon, hire hundreds or thousands of seasonal part-timers, to help with the holiday rush. Maybe you can even use that employee discount at that retail store you’d be working at to get a good deal on some presents. UPS and FedEx also hire extra drivers and warehouse employees to sort through all of those packages that are being delivered the last two months of the year.

Conclusion: Get creative and don’t get complacent. You can do this!

Action items:

Understand where your money actually went.

There are many great apps out there which can track your spending throughout the year, and help you stay up on things, so things don’t spiral out of control

Set a realistic budget of what you will spend on family, friends, co-workers, and even clients, if it merits it in your situation, so you don’t break the bank

Work with a trusted financial advisor/coach that can hold you accountable on your spending, so you can keep pace to reach your financial goals

Good luck and let us know your progress!  Enjoy the holidays and create some lifetime memories!

[1] http://www.magnifymoney.com/blog/featured/americans-holiday-debt-added-1003-average-year/

By Trilogy Financial
August 22, 2018

Recently, I followed up with a client after the client had been away on a family vacation for two weeks. Prior to that trip, the chaos of summer, work travel, and meetings had prevented the client from following up with me on a minor but impactful recommendation I had encouraged the client to consider in our last conversation. Before I had the opportunity to even say, “Hello,” the client apologized and communicated that I was owed a phone call. Yes, I had encouraged a decision knowing the impact would further strengthen the client’s financial situation, but in my diligence, I didn’t expect a phone call. The definition of diligence: careful and persistent work or effort. I love the simplicity of this definition and the use of the words persistent and effort. From knowing the client, I know the client is incredibly diligent in her own work and personal life. You see, when my client picked up this phone call, and the diligence of my follow up had just replaced the client’s call, eased the burden of the client having to call me back (amidst her intense work schedule), and ultimately resulted in the client making a best decision to improve the efficiency and effectiveness of her plan after re-clarifying the client’s priorities and current time frames.

An ongoing and sound financial plan requires an immense amount of diligence. If you are not ready to double down on this level of diligence on your own, why not hire a Decision Coach and Certified Financial PlannerTM professional to sprinkle the entirety of your plan with some diligence? Have you rebalanced your 401(k) lately? Have you increased your contribution percentage after your last raise? Did you update your life insurance planning after you moved into a new home after your second child was born? Are you planning on saving for that dream trip to Europe, or is that just going to magically happen in the next five years? What are the trading fees on your brokerage account? You have given thought to each of these questions. You have even discussed the answers with your spouse or close friends. Yet, you are busy and these action items are on the top of your priority list on a Tuesday. All of these questions require thoughtful planning with ongoing diligence, communication, and action. As soon as you settle into a plan with the right cash flow, life happens and you will need to adjust the game plan. My client didn’t forget to call me back. My client wanted me to call me back. Yet, my client didn’t call me back and didn’t make up her mind, until I called. Was I upset that I had to follow up several times? Was I frustrated my client seemed non-responsive? Of course not! It’s my career and joy as a Decision Coach. It’s part of my role as your financial planner to be diligent, to hold you accountable, to help you make qualitatively better decisions over time. Do I expect this to take a few follow up calls and three incredibly productive and ongoing quarterly progress checks between annual reviews? Of course! I love crafting a game plan for you. I love when you approach a financial decision and prior to making a decision, you reach out to me. I want your plan to be dialed in, so ultimately, you are living the life you want now, saving for the life you want in the future, as I provide the guard rails of diligence all along the way. A lot happens in a year and all of those little decisions have a significant impact over a long arch of time. Why I am so diligent with your financial plan? So, you don’t always have to be…don’t apologize, let’s just make the next best decision together and I’ll handle the follow up so we can one day celebrate together, not just because you are retiring, but because of the life you lived to get there.

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