Make Your Financial Goals Measurable.

A financial goal becomes more useful when you can measure where you are, where you want to go, and how much progress you are making.

Start the Lesson

THE PRINCIPLE

What gets measured can be understood, managed and improved.

A clear financial target helps you know exactly what you are working toward. It also gives you a way to measure whether your actions are producing the progress you want.

TODAY'S LESSON

Don't just set financial goals. Give them numbers and deadlines.

Saying that you want to save more, invest more or reduce your debt is a good starting point, but it does not tell you exactly what success looks like.

A measurable financial goal gives you a specific amount, a clear time frame and a way to track your progress. This makes it easier to turn intention into action.

For example, instead of saying, "I want to save more," you could define a target such as saving a specific amount by a specific date. The clearer the target, the easier it becomes to build a plan around it.

The objective is not to create unrealistic targets. It is to create financial goals that are meaningful, measurable and connected to your priorities.

FOUR PARTS OF A MEASURABLE GOAL

01. Be Specific

Know exactly what you want to accomplish.

Define the financial result you want instead of using a vague goal such as simply wanting more money.

02. Set a Number

Give your goal a measurable target.

A specific amount gives you something concrete to work toward and makes your progress easier to evaluate.

03. Choose a Deadline

Give your goal a time frame.

A deadline creates direction and helps you determine how much action is required along the way.

04. Track Your Progress

Review your progress regularly.

Tracking helps you identify what is working, what needs to change and how close you are to your target.

YOUR ACTION TODAY

Turn one financial goal into a measurable target.

Choose one financial goal that matters to you and write down the exact result you want, the amount involved, your deadline and how you will measure your progress.

STEP 01

What do I want?

Clearly define the financial result you want to achieve.

STEP 02

What is my target?

Write down the specific amount or measurable result you want.

STEP 03

When will I achieve it?

Set a realistic deadline and decide how you will track progress.

KEY PRINCIPLE

A financial goal becomes powerful when it becomes specific, measurable and actionable.

Give your money a destination, define the target and create a simple way to measure whether your actions are taking you there.

KEEP LEARNING

Turn your financial goals into a plan you can execute.

Tomorrow, we continue the journey by learning how to break financial goals into practical steps and build a plan for achieving them.

Continue to Day 23 →