Almost everyone agrees that financial success can only happen for most people if they develop short and long term goals. An important part of this planning is knowing when and how to adjust those goals when life throws us a curve ball.
What are reasons to reset your financial goals?
It could be that your financial situation has changed, maybe you are making a different level of income or you have suffered a major financial setback or your situation has changed and your goals are not meaningful anymore.
Are there certain goals that should always be considered in these situations?
Primarily they are longer term goals such as your planned retirement date, how much of your child’s education you plan to cover and even how quickly you plan to pay off debt. It might even require updates to your entire retirement plans.
What are times that short term goals might need to be adjusted?
If you have a sudden loss of income or an unexpected major cost then you might need to rethink your planned expenses such as vacations or major purchases. Holding off until you stabilize your current situation is often the most prudent strategy.
Why is resetting your goals so important?
Your goals are supposed to help you determine the best path to achieve your financial dreams. If something major in your life occurs, it likely impacts your financial situation. If you don’t reset your goals, you won’t have a realistic path to follow to financial success.
What is the best way to reset your goals?
If it is your long term goals, talk to your financial advisor and have them help you decide where you might need to make changes. Your advisor is often the person who can provide realistic input on how to make the proper adjustments to your goal.
How can we best reset short term financial goals?
For short term goals the best option is to revisit your budget. This will help you determine where you need to make daily changes in your life. It is important to remember, you can still achieve your goals - the path you take could be different than your original plan is all.