Achieving Financial Success: The Power of Goal Setting and Professional Guidance

Setting financial goals is a crucial step toward securing your future and achieving the lifestyle you desire. However, studies show that a significant percentage of people struggle to stick with their financial plans. In this article, we'll delve into the importance of goal setting, provide specific action steps, and explore how partnering with a trusted financial planner can enhance your success.

According to a study by the American Psychological Association, around 40-50% of people make New Year's resolutions related to financial goals. Unfortunately, the follow-through is challenging, with only about 8% of individuals achieving their resolutions.

Why the gap? Often, it's due to a lack of specific, actionable steps and the absence of ongoing accountability.

Action Steps for Amplify Your Goals:

1. Define your goals clearly

2. Designate an accountability partner

3. Reach out for professional guidance to enhance your success or when the stakes are high

Defining Your Goals Clearly:

The cornerstone of any successful financial plan lies in the clarity and specificity of your goals. Start by meticulously defining your objectives. Consider both short-term aspirations and long-term visions, painting a detailed picture of what financial success means to you. Employ the SMART criteria – make your goals Specific, Measurable, Achievable, Relevant, and Time-bound. For instance, instead of a vague goal like "saving for retirement," be detailed about the amount you aim to accumulate and the strategies you'll employ to achieve it. To make this goal more specific, break it down into more manageable steps that you have control over. For instance, “I will save 20% of my salary through automatic investment plans from my paycheck into my 401(k) or Roth IRA starting today.

Next, assign savings tasks to each account and a timeline for doing so. Then create investment strategies for each account that align with its respective time horizon. A retirement account would likely be invested in growth assets, while your emergency fund would be better suited in a high-yield savings account. This precision provides a clear roadmap for your financial endeavors. When your goals are well-defined, you're more likely to stay focused, measure progress accurately, and celebrate milestones along the way. Clarity in your financial objectives helps you navigate the complexities of your financial landscape with purpose and determination.

The Importance of Accountability:

Individuals who share their goals and progress with someone are more likely to achieve success. This is where an accountability partner comes in. Keeping a scheduled time on your calendar for reviewing your progress, revisiting your finances, or scheduling a money date with an accountability partner will increase the chances that you will do it. Research studies show that publicly committing your goals to someone else increases your chance of completing the task to 65 percent. However, holding a specific appointment that you schedule with an accountability partner increases your success rate to 95 percent.

Regular checks-ins provide you with an opportunity to review your progress, discuss challenges, and adjust your plan as needed. Life doesn’t move in a straight line, so use these monthly or quarterly moments to adapt to changing life circumstances:

Did you receive a promotion - Congratulations! Try increasing your savings and investment percentage to match and avoid the pressures of lifestyle expansion that can make it harder to acheive your goals.

Or, if an unexpected medical bill drained your emergency fund - use this as a time to focus on steps you will take to replenish it.

Financial Security through Professional Guidance:

Would you hire and pay yourself a fee to manage your financial future out of a lineup of qualified professionals? If the answer is not a resounding “yes,” then you might consider scheduling a consultation with a financial planner. Retirement must be taken seriously. The earlier in adulthood you begin, the bigger your results will be. Resources will not magically be there for you without deliberate action, discipline, and perseverance. Your future matters. Your financial well-being matters. Your freedom matters. 

A financial planning professional goes way beyond providing just investment advice. In fact, if the only benefit you are receiving from working with a financial advisor is the investment itself, it is time to find a real advisor. Fee-only fiduciciaries will help you amplify your success and provide compounding impacts of expertise in all facets of personal financial wealth. Here are a few examples how your peace of mind can be better served through this collaboration:

1. Regular Check-Ins: A financial planner provides regular check-ins and accountability to review your progress.

2. Independent Perspective: A planner gives you space to discuss any challenges, present you with options, and adjust the plan as needed without emotions that can run high during difficult times.

3. Expert Guidance: Benefit from the knowledge and experience of a financial professional who completed graduate level studies and experience working with hundreds of families and the intracies of varios financial (and real life) situations.

4. Humanized Advice: Receive personalized advice tailored to your unique situation which has proven to be more successful than AI solutions that are based on limited information provided.

5. Motivation and Support: A financial planner serves as a motivator and offers support during financial highs and lows. Knowing someone is holding you accountable can be a powerful motivator.

6. Risk Mitigation: Financial planners help identify and mitigate risks to your financial well-being and ensure your financial plan is robust against market fluctuations and unexpected life events.

7. Optimizing Strategies: Benefit from a professional's understanding of tax laws and investment strategies to optimize your financial plan for maximum efficiency and returns.

8. Adaptability: Life changes, and so should your financial plan. A planner helps you adapt to new circumstances; whether it's marriage, divorce, children, or a career change, your plan evolves to suit your needs.

Setting financial goals is a crucial first step, but the journey to success requires more than just good intentions. By following specific action steps, creating accountability, and enlisting the help of a professional financial planner, you significantly increase your chances of not only sticking to your plan but achieving your goals faster and with greater financial security. Remember, it's not just about making resolutions; it's about creating a roadmap to your financial future. You owe this to your future self.