Last time, I posted an article regarding making goals as opposed to just making New Year resolutions, (STOP MAKING NEW YEAR RESOLUTIONS, START MAKING GOALS), after all, this is the start of the year, and while I always thought that today is the first day of the rest of your life (regardless what day it is ) this is merely in keeping with tradition….We all have dreams, We all carry movies in our minds about how life could be for us in a better world. There are those who dreamed of hitting the big time in their career, landing a high-paying dream job, a long sought promotion, a pay raise, etc. while there are those who are of the materialistic types-winning the lotto, mega or whatever. (it’s an all-in-one wish list).
Chances are, most people will never get what they dream about. They will go on playing those mental movies for themselves or talking about them to friends and family members.
Failing to live your dreams is not necessarily a bad thing. Lots of people are perfectly happy dreaming of one life but living another. The problem arises when the gap between fantasy and reality results in unhappiness or even depression. When this happens, it’s time to master plan a new life. And the first step is to establish goals.
Goals are different from dreams in four ways. They are specific, actionable, time-oriented, and realistic.
Specific: Being rich is a dream. Earning P1 million annually is a goal.
Actionable: Winning the lotto is a dream. Winning a marathon is a goal.
Time-Oriented: Earning P1 million annually is a goal. But earning that P1 million a year in five years is a better goal.
Realistic: Earning P1 million annually in five years is probably reasonable. Earning P1 million in four months is not.
I’m assuming your last name is not Zobel de Ayala, Araneta, Sy, Tan, Ty, Yu, or whatever...you know what I mean.
Goals are also different than objectives - more long-term and broader in scope.
Your master plan will be broken down into seven-year and one-year goals, monthly and weekly objectives, and, finally, daily tasks that will make it possible to achieve your medium-term objectives and long-term goals. For example:
Seven-Year Goal: an annual income of P1 million net in five years.
First-Year Goal: Eliminate P50, 000 worth of debt or loan
Monthly Objective: Get that dream job that you’ve been eyeing, or if you’re in sales, close at least twice the no. of sales quota required by your company, and if you’re in business, target twice (or thrice) the average monthly sales you had last year.
First Week’s Objective: Get that job interview, make at least 10 sales calls/presentation, or do a sales promo.
First Day’s Task: Write personal letters to CEOs of my top 10 "dream job" companies. (This on top of your usuall letter of application to head of HR or “The Manager”) or come up with a new killer sales presentation. And make a list or appointment with your prospects.
Okay, that’s the plan. Starting today, you are going to be performing tasks every day that support weekly objectives that, in turn, support monthly objectives that, in turn, support yearly goals that, in turn, support seven-year goals. All of this will be done formally. All of it will be done in writing.
At this point, you may be wondering: "Does it really matter whether my goals are specific? Does it make any difference if I write them down?"
Consider this..
Several years ago, there’s an interesting bit of information in a book by Tom Bay - Look Within or Do Without - that was completely mediocre except for this one little gem. According to Mr. Bay, Harvard Business School did a study on the financial status of its students 10 years after graduation and found that (remember were talking Harvard grads here):
• As many as 27 percent of them needed financial assistance.
• A whopping 60 percent of them were living paycheck to paycheck.
• A mere 10 percent of them were living comfortably.
• And only 3 percent of them were financially independent.
The study also looked at goal setting and found these interesting correlations:
• The 27 percent that needed financial assistance had absolutely no goal-setting processes in their lives.
• The 60 percent that were living paycheck to paycheck had basic survival goals (such as managing to live paycheck to paycheck).
• The 10 percent that were living comfortably had general goals. They thought they knew where they were going to be in the next five years.
• The 3 percent that were financially independent had written out their goals and the steps required to reach those goals.
And that’s just one study. Here’s one that shows the power of setting specific goals:
Researchers from Virginia Polytechnic Institute and State University asked 56 female undergraduates to do as many sit-ups as they could in 90 seconds. One group, told to "do their best," averaged 43 sit-ups on each day of the four-day study. The other groups, which had been given the specific goal to do consecutively more sit-ups at each session, performed significantly better, averaging 56 sit-ups on the last day of the experiment.
Studies are great, but personal experience is better.
You can spend your whole life dreaming. And dreams are wonderful things. By all means, dream away. But if you want to turn those dreams into reality, you need to transform them into goals.
What’s your wildest, longest-held dream? How can you make it specific? How can you make it actionable? How can you put a time limit on it? How can you make it realistic? Use these four questions to create goals you can aim for… then take action. And you’ll be living your dream in a few short years.
Source:http://www.earlytorise.com/2008/02/04/personal-goal-setting-or-dreaming.html
Friday, January 9, 2009
Monday, January 5, 2009
STOP MAKING NEW YEAR RESOLUTIONS! START MAKING GOALS!
"You read a book from beginning to end. Achieving your goal is
the opposite. You start with the end, and then you do everything you must to reach it."
The year is almost over, with the New Year comes the usual New Year resolutions, most of us are actually aware that we can’t stick to it,
its only in keeping with tradition, (much like those firecrackers we set-off at midnight, when its over, wala na)not in keeping it. So I’m thinking (duh) why not make a resolution the same way most of us do business, make a goal, and to make sure you stick with it, make it quantifiable or measurable. For example, why not make a financial goal? (ok I’m beginning to sound like an insurance salesman, of which I am he he) let’s say P10,000 every quarter in savings, which you could eventually use to invests, pay-off an existing loan or maybe an emergency fund, its up to you, as long as you start saving. One of the nice things about having savings as your goal is that you are actually hitting more than one bird with a single stone, (Be financially independent,I will balance my accounts, not get into debts, stop unnecessary expenses, limit nightly gimmicks etc.) Consider the following methods in attaining your goal. (I got this from Inquirer.net)
1. Watch closely where your money goes-It could hold the solution to your “I don’t have much money” or I don’t know where the money went” woes”.
2. Decide where your money will go-since savings is your goal for this year, now is the time to make-up your mind what you are saving for, pay off your loans, educational plans for the kids, a future trip..but get into the habit first.
3. Make a spending plan-Allocate your earnings wisely by making a written budget every month (something most of us don’t do) experts say pay yourself first (now that’s a good idea)-meaning set aside some amount for savings (an old envelope will do, but make sure you won’t touch it) before you settle bills and spend money. A good starting point would be 10%, but do make it bigger as your income increases or your debts decrease. Then set a ceiling for your regular expenses, now you’re starting to live within your means.
4. Start an emergency fund-you can use your savings as an emergency fund in case of emergencies or unplanned expenses, god willing if nothing of the sort happens, then your savings remains intact, if something of the sort does happen, at least you have something you can fall back to, especially if you lose your job. sort of your own insurance.
5. Manage your debt-never get one you can’t afford to pay, before you get one, compute your budget and see if you can afford to regularly pay them for a period of time. Applies also to credit card purchases.
6. Protect your name-maintain a good record, pay off your bills on time. your income tax promptly, etc. your good name is one of your( if not the) most important assets.
7. Look for ways to grow your income-maybe you can get a sideline business or job, to compliment your present income, then use the extra for investment. As the Chinese say: “yung pera lipad lipad lang yan, ikaw bahala habol” (money is just flying all around, its up to you to catch it)
8. Have the essentials-If you’re not: be a member of the SSS, and Philheath, get an insurance policy, this includes, hospitalization, disability, accident, even a memorial plan. Stop fooling yourself you don’t need them.
9. Be serious about investing-Those savings you put aside can earn more when placed in a proper investment vehicle. Leave some in a savings or checking account, but put the bulk in higher-yielding-mutual funds, UITF’s, stocks or bonds, depending on your appetite for risk, talk to a Banker or Financial planner, read articles regarding personal finance (Fancisco Colayco’s “Pera mo’ Palaguin mo” would be a good start-also see link below) an while some may think its not a good idea because of the crisis, come to think of it-its actually the best time, besides investments should be treated as long term, at least 10 yrs.
10. Share your blessings-I think this is self-explanatory
HAVE A PROSPEROUS NEW YEAR
Links:
www.colacofoundation.com
www.income-tacts.com
www.pinoysmartsavers.com
www.icap.com.ph
www.rfp-philippines.com
the opposite. You start with the end, and then you do everything you must to reach it."
The year is almost over, with the New Year comes the usual New Year resolutions, most of us are actually aware that we can’t stick to it,
its only in keeping with tradition, (much like those firecrackers we set-off at midnight, when its over, wala na)not in keeping it. So I’m thinking (duh) why not make a resolution the same way most of us do business, make a goal, and to make sure you stick with it, make it quantifiable or measurable. For example, why not make a financial goal? (ok I’m beginning to sound like an insurance salesman, of which I am he he) let’s say P10,000 every quarter in savings, which you could eventually use to invests, pay-off an existing loan or maybe an emergency fund, its up to you, as long as you start saving. One of the nice things about having savings as your goal is that you are actually hitting more than one bird with a single stone, (Be financially independent,I will balance my accounts, not get into debts, stop unnecessary expenses, limit nightly gimmicks etc.) Consider the following methods in attaining your goal. (I got this from Inquirer.net)
1. Watch closely where your money goes-It could hold the solution to your “I don’t have much money” or I don’t know where the money went” woes”.
2. Decide where your money will go-since savings is your goal for this year, now is the time to make-up your mind what you are saving for, pay off your loans, educational plans for the kids, a future trip..but get into the habit first.
3. Make a spending plan-Allocate your earnings wisely by making a written budget every month (something most of us don’t do) experts say pay yourself first (now that’s a good idea)-meaning set aside some amount for savings (an old envelope will do, but make sure you won’t touch it) before you settle bills and spend money. A good starting point would be 10%, but do make it bigger as your income increases or your debts decrease. Then set a ceiling for your regular expenses, now you’re starting to live within your means.
4. Start an emergency fund-you can use your savings as an emergency fund in case of emergencies or unplanned expenses, god willing if nothing of the sort happens, then your savings remains intact, if something of the sort does happen, at least you have something you can fall back to, especially if you lose your job. sort of your own insurance.
5. Manage your debt-never get one you can’t afford to pay, before you get one, compute your budget and see if you can afford to regularly pay them for a period of time. Applies also to credit card purchases.
6. Protect your name-maintain a good record, pay off your bills on time. your income tax promptly, etc. your good name is one of your( if not the) most important assets.
7. Look for ways to grow your income-maybe you can get a sideline business or job, to compliment your present income, then use the extra for investment. As the Chinese say: “yung pera lipad lipad lang yan, ikaw bahala habol” (money is just flying all around, its up to you to catch it)
8. Have the essentials-If you’re not: be a member of the SSS, and Philheath, get an insurance policy, this includes, hospitalization, disability, accident, even a memorial plan. Stop fooling yourself you don’t need them.
9. Be serious about investing-Those savings you put aside can earn more when placed in a proper investment vehicle. Leave some in a savings or checking account, but put the bulk in higher-yielding-mutual funds, UITF’s, stocks or bonds, depending on your appetite for risk, talk to a Banker or Financial planner, read articles regarding personal finance (Fancisco Colayco’s “Pera mo’ Palaguin mo” would be a good start-also see link below) an while some may think its not a good idea because of the crisis, come to think of it-its actually the best time, besides investments should be treated as long term, at least 10 yrs.
10. Share your blessings-I think this is self-explanatory
HAVE A PROSPEROUS NEW YEAR
Links:
www.colacofoundation.com
www.income-tacts.com
www.pinoysmartsavers.com
www.icap.com.ph
www.rfp-philippines.com
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