Ever wonder where the money you got from your recent personal loan has disappeared to? Or is it simply that you can’t account for all those years of working? Setting short-term and long-term goals is the first step towards financial independence. 

When you have no financial goals, you will likely develop poor spending habits and may even end up in debt. Short-term financial goals act as a stepping stone to help you achieve bigger goals by providing you with information and foundational knowledge to set long-term financial goals. So, how can you go about setting goals? Read on to find out more!

1. Write your goals down

Putting your goals on pen and paper does something rather special to them. It’s easier to work with goals written down on paper than working with something in mind. Penning down your goals creates a commitment towards achieving them. You can always feel the satisfaction of ticking a goal off once you have achieved it – the feeling is unbeatable. Once you’ve written down your short-term and long-term goals, you can stick them on your desk, bathroom mirror, or any other place you can see them often. Keeping a list of goals in your view keeps you focused as these goals will be on your mind all the time.

2. Goals should be specific

Rather than setting goals such as “I want to save money”, you should have goals such as “I want to save $10,000 by December.” Specificity prompts you to take the necessary steps in achieving those goals. For instance, if you want to renovate your kitchen by the end of July, you can consider taking a personal loan in Singapore of a specific amount to finance that goal. By knowing that your goal is to repair your kitchen, you’ll have a clear budget that dictates how much money you need for materials and labour.

3. Ensure your goals are measurable

“I want to pay off my loan this year.” This is not the right way to set goals. Instead, your goal should read, “I want to pay off 50% of my loan this year.” A measurable personal finance goal helps you set the specific amount to contribute towards personal loan repayment each year. Setting measurable goals enables you to estimate the measurable amount of personal loans you need to finance your goals. When taking a personal loan in Singapore, ensure you are using up to the last cent for the reason you took it. Also, ensure you understand personal loan interest rates to choose the lowest rates.

4. Every goal should be time-sensitive

There is no day such as ‘someday’. Ensure you have a timeline for saving or paying off that personal loan and aim at achieving it. The thing is, goals are more realistic when you put a deadline on them. You would rather set a finish date and adjust it later than set none at all.

5. Give your goals a deadline

 It’s easy to look around and see your friends and colleagues building homes and saving for grand weddings. But, comparison is the thief of joy. Your goals may seem small compared to those around you, but they are yours. There is no reason to follow the crowds when setting goals. Put the blinders on and focus on yourself.

6. Establish a budget and stick to it

When you sit down and analyse your finances, you may be shocked at just how much money is slipping through the cracks without your noticing. A budget may sound cliché, but it helps analyse your expenses and income to ensure you are spending money wisely. When you spend soundly, you can set aside the money you don’t need to use towards goals you have set. For personal loans, having a budget will help you determine a comfortable amount to borrow. As a result, you’ll find yourself actively seeking the lowest personal loan rates, which will save you tons of cash.

7. Talk about your goals

While vocalising your goals might sound like gloating and showing off to some, doing so around like-minded people is a good thing. Sharing your goals will hold you accountable to achieve them as it creates subtle peer pressure to go for your goals. It’s also important to discuss your goals with a financial advisor who can offer tools and insights to help you manage money better. Finance experts can even help you score the lowest personal loan rates and achieve your goals faster.

8. Keep a positive mindset

As long as you’re doing your best to achieve your set goals, maintain a positive mindset. Whether your goal is to pay off a huge personal loan, or to cap personal loan interest rates by making regular payments, keep your eye on the prize. Remember, it’s normal to get discouraged along the way due to emergencies that take you off track. In such cases, take a look at how far out have come and keep a positive outlook and remember your goals are in sight.

9. Track your progress

You can’t get to your final destination successfully if you are unsure of where you are. Seeing how far you’ve come and how close you are to your goal can motivate you to keep going. You can keep track of your goals using a journal or using apps if you prefer using technology. Ensure you have records of all your goals and what you have been able to achieve. For instance, if you’re seeking a personal loan in Singapore, you should be tracking your credit score. As your credit score improves, you’ll be at a better chance of getting a cheap personal loan.