How to reach large financial goals

Reaching large goals takes time, determination and the proper approach. Sometimes, some goals seem so far in the future or so difficult to achieve that you might feel overwhelmed, but here are some tips that will help you.

When you have a long road ahead of you, it’s hard to remain motivated at all times. Sometimes, the best way to achieve a large goal is by breaking it down into smaller pieces and setting steps you can easily follow.

1-    Ensure the goal is specific

In order for a goal to be effective, it has to be specific. Otherwise, it will be really hard to achieve if the limits of the goal are unclear. There is a model called SMART, which stands for Specific, Measurable, Attainable, Relevant and Time-bound. 

For example, if your goal is “reach financial security”, you don’t have a way of measuring it, so it is harder to achieve. A nice SMART goal example is “I want to have a net worth of $1 million by the time I turn 60”.

2-    Determine a deadline

The next step towards reaching a large goal is setting a realistic deadline. Realistic doesn’t necessarily mean it can’t be aggressive. Quite on the contrary, to achieve a large goal you need to show determination, discipline and drive.

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3-    Decide your number

The third step is to determine how much money you need to save every month in order to achieve your goal. You might have to do some sacrifices along the way, but keep your focus on your goal to stay motivated. This number will be determined by the deadline you have, so make sure this is also realistic.

4-    Open a new savings account

When saving for a large financial goal, it is important to keep that money on a separate account to which you have no easy access. This way, you won’t be tempted to use it for smaller goals that might appear along the way. Keep your focus!

5-    Periodically reevaluate your goal

As you are working toward achieving your goal, things might change. Make sure you periodically review your performance, your goal and your financial situation to make sure you are doing ok. If things changed for the worst, you might need to extend the deadline, for example, but sometimes things change for the best and you could actually start saving some more money and get there sooner!    

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