Armchair Millionaire Community Bulletin: The Secrets to Successful Goal Setting

The old adage is true: "People never plan to fail; they just fail to plan." Goal setting is the first step in making your financial dreams a reality, so take some time to sit down, flex your dream muscle and define your goals.

New York, NY (PRWEB) April 19, 2005 -- There's often a very small difference between those who get what they want financially in life and those who don't, and it has little to do with how much you earn. That difference is simply the ability to set and follow through on goals.

Most of us are so busy with our day-to-day activities that we don't take time to look down the road and determine exactly what we want. And if you don't know what you want, you're certainly not going to get anywhere.

As you can see from their comments, members of the Armchair Millionaire community make it a point to set detailed financial goals:

"My most important financial goals? 1) Buy a house. We're closing on May 12. 2) Prepare for retirement. We contribute the annual federal cap to our 401(k), max out our Roth IRAs contribute to some taxed accounts. 3) Help pave the way for my son's financial future. He's 12 months old, and we've been contributed into a mutual fund for him since he was born." --David

"Financial independence is my most important financial goal. I feel I will have achieved this when the interest from my investments are greater than my spending. I have created detailed spreadsheets to track my net worth, investment growth, and monthly expenses. I have formulated a plan and set goals. I am 39 now and my goal is to be financially independent by age 45." --duggerlew

Having clear goals paves the way for your success by organizing your thinking, focusing your efforts and keeping you motivated. My checklist shows you how to set goals effectively.

The Armchair Millionaire's Checklist for Successful Goal Setting

Be realistic. Sorry, but winning the lottery is not a realistic goal. Stretch yourself to focus on achieving all that you can achieve, but don't set yourself up for failure by living in a fantasy world. Take a hard look at your current assets, debts, net worth and income-generating ability to determine what you can realistically achieve within a reasonable time period.

Be specific. Make your goals concrete by describing them in detail. For example, one goal may be to send your two kids to college. You'll have a much better chance of achieving this goal if you specify that you want them to have the option of attending Ivy League schools, that you will need approximately $120,000 to pay for tuition, room and board at this type of school for each child, and that your oldest child will start college in the fall of 2011. So for each goal, write down exactly what you want, exactly how much it will cost and exactly when you want it.

Put it in writing. Committing your goals to paper makes your ideas and dreams tangible. The simple mechanical act of writing sets your goals firmly in your mind, and re-reading what you've written periodically reinforces them even further.

Be accountable. Share your goals with the people you trust most--important family members, your best friend or respected co-workers. Not only will this help make you accountable for taking action on making your goals a reality, it can be a source of support and encouragement to keep you going.

Prioritize. Split your goals up according to short-term (less than two years), medium-term (two to five years) and long-term (more than five years). Doing so will help you focus your attention on the steps you need to take now.

Get started now. No matter how small, immediately take steps toward achieving your goals. If you want to buy a house, open a savings account to start accumulating your down payment. If you want to send the kids to college, educate yourself about the various tax-advantaged college savings plans and choose one. If you want to retire a millionaire, see your HR department about bumping up your 401(k) contribution.

The Bottom Line: The old adage is true: "People never plan to fail; they just fail to plan." Goal setting is the first step in making your financial dreams a reality, so take some time to sit down, flex your dream muscle and define your goals.

The Armchair Millionaire Weekly Survey: Do you think you'll ever be rich? Log on to www.armchairmillionaire.com and let us know.

Lewis Schiff founded the Armchair Millionaire Web site in 1997. His first book, The Armchair Millionaire, was published in 2001. Schiff's newest report, "How to Know When You Are Rich," is now available at www.armchairmillionaire.com.

Contact Inforamtion:
Lewis Schiff
Armchair Millionaire
877-833-2823
http://www.armchairmillionaire.com

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