There is a reason why financial advisors harp on about goal setting. It’s because those who set meaningful goals and work towards them incrementally generally succeed.
When we want to improve our fitness or lose weight, setting specific goals such as eating better or going to the gym is necessary to achieve results. Even though results don’t happen overnight, by maintaining faith and trusting the process we know we can get there.
Similarly with financial goals, you can invest in the $80m Powerball draw, but the chances are you’ll be lucky to recoup the $25 cost of the ticket. Sure – you’ve got to be in it to win it, but there are smarter ways of building wealth such as compounding funds over the years. As Albert Einstein eloquently said “Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t, pays it”.
Understanding our own personal values is a crucial part of successful goal setting. When working with clients I often ask them questions such as:
I often find that when we’re unhappy or struggling we’re not aligned with our values as something is putting pressure on these goals becoming a reality (i.e. finances, work stress, personal stresses, family etc.). The sooner you can become self-aware of your values and those factors that are not in alignment, the sooner you can correct the ship and put it back on course.
Ryan Scherini is an Executive Advisor at Viridian Advisory.