This article is part of a 30-day series called the 30 Steps Program to Financial Independence.
I’m a big fan of setting goals because they keep me motivated and moving forward. Sometimes I don’t reach my goals, but I’ll get back up, try again, or set a new one. When it comes to money, I love to make projections about where I’ll be financially in a year and then compare that to where I actually end up.
Having goals with deadlines can keep you motivated. For some people, a goal might be to retire by the ages of 40, 45, or 50. For others, it might be saving a million dollars. My personal goal is to reach the point where my passive income covers my living expenses. I believe I can achieve this before I turn 35, which is just three years away. I started saving early, invested wisely, and lived a simple life, all of which have brought me closer to this goal.
Once I achieve this, I’ll still work a bit but only step into an office if I really want to.
I find that talking about my goals publicly keeps me accountable. People will check in and ask how I’m progressing with different objectives.
I also like breaking my larger goals into smaller, more manageable steps. For example, if you’re paying off debt, set a smaller goal of $100 increments. For every $100 you repay, check a box or celebrate with friends. This approach can make tackling something like $3,000 of debt feel much less overwhelming—just 30 smaller steps of $100 each!
Make sure to review your goals annually or every semester. Assess your progress: Are you ahead or behind? Don’t give up. If necessary, adjust your goal to something more attainable, or if you’re doing well, aim higher!