When setting goals, make sure the sacrifice results in satisfaction

With the new year upon us, many have set or are setting resolutions, financial or otherwise.

While the tradition of making resolutions has a long history, the track record for breaking them is probably just as long. When it comes to setting financial goals, this can be especially true.

The late Texas oil baron H.L. Hunt once said, “If you set goals, you first must decide what you’ll sacrifice to get them.”

He was right. If you set a goal, you have to expect to make some change in your business and personal life to get it. The satisfaction and other rewards for achievement can be well worth it.

If you’re looking for resolutions on getting your financial house in order for the new year, I suggest meeting with a good financial planner as well as answering the following:

▪ Do you have enough cash set aside for emergencies?

▪ Do you need insurance? Or is your current insurance adequate for risks involving your health, a possible disability, a liability risk, the premature death of a breadwinner in the household, or a medical condition that may require long-term care?

▪ Will there be any surprises on your tax return this year? If so, how should you prepare for it?

▪ Do you need to do a retirement forecast – or update your forecast – to know where you stand financially? Do you need to adjust your saving or spending accordingly?

▪ Does your portfolio need to be rebalanced as a result of changing goals or needs?

▪ If you are retired, or thinking about retiring, do you have good cash flow to meet your income needs?

▪ Is it time to update your estate plan – including beneficiaries on your retirement accounts and life insurance? Do your loved ones know what to do if something happens to you?

A thorough discussion about some – or all – of these topics is bound to identify a few new goals for 2017.

Whether your goals are financial or personal, to give you a better chance of achieving them, consider the SMART system. Make sure your goals are:

▪ Specific: The more precise and defined, the better. Write them down.

▪ Measurable: Have a way to quantify your success along the way.

▪ Attainable: They need to be realistic.

▪ Relevant: Is it important enough to you that you want to accomplish it?

▪ Time-bound: Give yourself a deadline. You can always adjust it.

You won’t know what you can achieve unless you stretch a little. Make sure your objectives are big enough to do just that, all in an effort to bring out your best. Remember: It’s often far easier to reach goals than it is to set them.

Good luck with your resolutions in 2017.

This story was originally published January 9, 2017 at 12:17 PM with the headline "When setting goals, make sure the sacrifice results in satisfaction."