Put it in writing

Something intriguing happens when you write down your goals – it becomes much more likely that you will achieve them. Want to make getting debt-free, saving an emergency fund or paying off your mortgage quicker more of a sure thing? Show your written goals to those you’re close to.

Now I certainly wouldn’t say that I’ve stayed happily married for a dozen years just because I signed my life away with family and friends around, but I like to think that putting pen to paper was a good start. (The party was even better.)

Signatures, of course, can be legally binding – think of all the marriage certificates and mortgage documents out there designed to make sure those agreements get kept. And despite divorces and defaults, the signature system is still around after all these years – and apparently still works.

Yet there’s something else that also happens when we put things in writing.

A simple formula

When people take action by writing down a goal, they take action and try to reach it. And as we’re setting personal goals for our finances, we can make this work for us.

Here’s the simplest, most effective formula I’ve found so far for writing down goals:

      “I will have [an amount] for [my goal] by [this date].”

It’s a powerful statement. Just insert the amount you’re saving, the reason you’re saving it, and the date you’ll have it done by.

And human nature – and behavioural economics – being what they are, odds are you’ll find yourself trying to act in a way that’s consistent with what you’ve written down. You’ll find money here and there, set it aside to meet your goal and make sure that you’re on track.

A good goal is specific and has a time limit, and the above formula makes it easy. 

Keep it real

The other thing that goals have to be is realistic. They have to be achievable. You don’t want to be setting yourself up for failure, right?

It’s worth revisiting your goals every six months or once a year to check if you are still on track to achieve them. That’s yet another advantage to having them written down.

Tell the team

Everyone knows how peer pressure works in a negative way – making us do things just because everyone else happens to be, pressuring us to keep up with all those Joneses.

But we can also make peer pressure work for us instead: helping us achieve the goals we choose ourselves.

By showing those close to us what our goals are and when we intend to achieve them, we subtly use them to hold us accountable. Not like a taskmaster or anything, but a helpful reality check and a reminder.

Whether you’re sitting down with your partner or bringing the whole whānau together to discuss goals and put them in writing, the mutual support you receive can be extremely helpful.

Inspiring even.