Ric Edelman: If you are like most people, you set financial goals for yourself every January, and you probably break your pledge before the month ends. Why do you fail every year? Chances are you are setting the wrong goals. So today I will show you the four steps to setting the right goals.
The first step; set a positive goal. Usually we set goals that tell us what not to do. For instance, you might set a goal like don't spend money. That's a negative goal. You are thinking about all the things you shouldn't be doing, which is no fun. That's why it's important to set a positive goal, like I will save to buy a house. You are focusing your energy on saving, something you should be doing instead of not spending, which is something you shouldn't do. If you are really focused on saving, you won't notice that you have stopped spending.
The second step; set a date for achieving your goal. A goal is not a goal until you set a date for it and make sure your date is realistic. If it's not, you will become discouraged and quit.
And third; write down your goal. Until you see the goal in front of you, it's not real. Take photos of your goal to the bathroom mirror, your refrigerator door, car steering wheel, even your computer monitor. Keep it as a reminder.
And finally; stay focused. Keep your goal in front of you all the time. If your goal is to buy a home, tour model homes, watch TV shows about homes. Surround yourself with your goal and you will find it easy to stop spending money. Rather than not spending, you will be preparing to spend money on something really special and you will be amazed at how these four steps can help you achieve your goal.