Set Ridiculously Small Goals

When it comes to personal finances, learning how to set and achieve goals is key to success. Figure out what matters to you most. Consider everything from urgent fixes to distant dreams.

But be realistic – it’s way more fun, for me at least, to buy a fresh new pair of running shoes than remember that I said I was going to have a No Buy July (true story). 

Here’s what I did to recover: I reminded myself of my big, lofty goals and then I chose one small thing I could remember to do to keep myself on track to maybe someday reach those goals. 

Here are some specific tips. 

1. Consider Timeframes. 

Sort out what’s within reach in the short term and what will take time as part of a long-term strategy. Break your long-term goals into ridiculously short-term goals – never mind No Buy July, go with No Buy This Afternoon. 

Your goals can be separated into three timeframe categories:

Short-term financial goals take under one year to achieve. For example, building an emergency fund. 

Mid-term financial goals can’t be achieved right away but aren’t likely to take too many years to accomplish. For example, paying off all consumer debt. 

Long-term financial goals may take quite a few years to accomplish. For example, buying a home or saving for your children’s education.

2. Prioritize your Goals.

When you examine your own goals, you’ll likely see that you have a good number of goals, but it’s impossible to focus on all goals at once. Obviously my goals of running with fresh-cushioned shoes conflicted with that of my No Buy July. If I had examined and properly prioritized my goals, I wouldn’t be kicking myself (with my amazingly comfortable running shoes) right now.

You may want to work on some ridiculously easy quick wins at first to gain momentum. 

You may want to focus on a single major one if it represents a problem dominating your life.

3. Commit to your Action Steps.

You have now decided what ridiculously small goals you intend to reach and in what order of priority. 

The next step is to make clear plans for the next ridiculously small step. This will be an actual action step you’ll take to reach a goal. Some examples: download investment account statement; read statement; search online for Factsheet of mystery mutual fund in account to find the annual fee.

Choose specific workable steps that will enable you to achieve each small goal. If your goals are clear and your action steps are specific and realistic, you will know exactly what ridiculously small step you need to take next. 

4. Adopt a To-Do list habit.

Include each ridiculously small goal-related step and establish a clear priority ranking for your action steps. Number them. Adjust them. Check them off. Pat yourself on the back.

Make sure your action steps keep you focused on the most important things (however ridiculously small) you need to do or change. 

5. Adopt a Get-It-Done habit. 

Identify today’s ridiculously small action step. 

Then do it immediately. 

If you do this your financial success will be essentially inevitable. 

This is because your daily achievements will lead to more and bigger achievements.