Managing Your Money - Dream and Set Goals

First and foremost, I am not a financial advisor. However, I have spent a great deal of time with my Life Coaching clients who find themselves in a mess with money and unable to focus on things that they want. This hub is about Managing Your Money by setting clear and realistic goals and dreams.

Something is very clear to me and that is: People who have good goals and dreams, generally find a way to afford the things that they want in life. People who do not have good goals and dreams generally have very little to show for the money they have earned.

As an observation, it seems that even people who earn a lot of money do not budget or set goals in a way that gets them the things that they want in life.

The aim of this hub is to help you begin to create change in your life in order that you can improve your relationship with money and start to get all the things in life that you want. I'm not promising extraordinary wealth if you think positively - that's not enough - but I can suggest that things will improve if you change your thinking and your relationship with money.

I'll keep this as simple as possible. Start your new relationship with money by grabbing a sheet of paper or even better by grabbing a book in which you can write and keep them all together.

1. Get something to write on

On the paper write at the top - My Goals and Dreams. I'm pretty sure you'll get the idea here, but if you need some help, consider the different categories below:

• Home
• Physical
• Service
• Family
• Relationships
• Work/Professional
• Money
• Personal
• Spiritual

Now the first thing to remember here is that you just need to make a list. It really doesn't matter if you actually believe you can have these things right now, if it occurs to you and seems interesting or exciting then include it in your list.

A good starting point is about 30 dreams and goals - a great place to aim for is 100 or more. If you are using a book, then write down the date you set the goal beside it and leave room for pictures, notes and a date achieved. Personally, I like to have one goal per page and then as I review the goals I can write down my progress and stick in cuttings from magazines etc.

2. Talk it through

Once you've finished, get together with your partner or family (if appropriate) and talk them through - it can really help if they also do the same for themselves and then together you can set joint goals and dreams.

3. Review and set timescales

The next task is to review all your goals on your own and mark them as short term (up to about 1 year), medium term (1 to 3 or 4 years) and long term (3 or 4 years plus). As part of this process, if ideas and details occur to you then list them down underneath your goal.

4. Pick one or two short term goals to get started with

Identify one dream or goal that you would like to achieve in the next 3 or 4 months. It clearly needs to be realistic, but certainly not easy!! The best ones are those that you'd really like, but you get slightly uncomfortable thinking about how you will achieve them.

For most people, this process is going to involve saving up some money to buy something or do something (e.g. holiday, new TV etc.) and therefore the next part of this is going to be...

5. Consider the financial implications

How much money is this goal or dream going to cost? How much can you reasonably put aside each week or month towards it? Now again, the important thing is to stretch a little - not to the point where you forsake food or don't pay your bills, but it certainly helps to keep it at an uncomfortable level.

At this point (if you live in the UK) there is a wonderful website called The Money Saving Expert which will help you to squeeze a few extra pounds for your saving fund.

For most people, this simple exercise of focusing on what you want for a few months, turns off the part of them that buys on impulse. There is no use in saying to yourself I can't have that because I've got to save: however you can think, I'm choosing not to have that so that I can have ________ (whatever your dream or goal is).

Here's what not to do: Buy or spend money for your dream or goal using credit cards or loans. There is no learning in this!

This is purely an exercise to help you focus your spending on things you want rather than on what you buy on impulse or by default.

If you are not in a position to pay for your dreams using your own money, then wait until you are.

For severe financial problems, my advice is to talk to experts that can help. In the UK there is the CCCS: http://www.cccs.co.uk and I'm pretty sure other countries have similar charities that can help in extreme situations. If this is you, then until you have sorted out your debts and bills, then take no action beyond a list of dreams and goals.

6. Tips and advice

Get other people involved - if you have family, children etc. then include them in your goals and dreams. They'll quite happily help you to save the money and keep you focused on what you want (especially if it benefits them too).

Review your list of goals and dreams on a daily basis - making notes if you want to, adding things and celebrating your achievements towards your dreams.

Find someone to be accountable to: Some people like to use a Life Coach or pick a friend who is good with this kind of thing already.

It doesn't matter how much you earn: As long as you can believe that your dreams can be achieved, then you'll find a way to achieve them. Start small and simple and work up to the things that may take you a few years to achieve.

If you wish, you can use the comments section below to keep readers updated of your progress and set your dreams publicly.

Again, I reiterate - if you cannot afford your bills currently then you need to take action to sort out your debts and finances. Seek specialist advice - there are independent financial advisors who are regulated and also charities that can help you sort out your life. Once you are in a regular repayment plan for debts and are able to afford your bills, then you can begin taking action and saving for your goals and dreams.