I want you to set goals. Goals are good. Goals motivate you and push you forward. But what I see regularly is people who meet their goal, but are then stuck with the consequences of meeting said goal for decades. Let me give you an example.
We’ll say your goal is to buy a house. You save for a down payment, you go to the bank and get approved for the loan, and you buy a house. Done. Goal accomplished. Yet, now you have no savings and are tied to a mortgage for the next 15-30 years. If you aren’t thinking of what will happen after you accomplish the goal, you aren’t accomplishing the goal in a financially healthy way. You were so fixated on buying a home, you forgot to consider what it meant to own one.
Another example of this is retirement. For decades your goal has been to retire at 62, so when 62 roles around you go for it. Goal accomplished. But if your financial situation wasn’t quite ready for it, you are now stuck for decades in a retirement that can’t quite support you.
Like I said, goals are great. But if you get too fixated on the goal itself you can do a lot of damage to your financial life. Think beyond your goal. What are possible outcomes? What are possible extra costs you could incur? Do you need to adjust your goal to fit your financial reality? When you think beyond your goal, you not only accomplish your goal, but you also prevent major financial issues in the future.
I discussed this with Ray on Fox59 a few weeks back, check it out the segment below.
Peter Dunn a.k.a. Pete the Planner® is an award-winning financial mind and a former comedian. He’s a USA TODAY columnist, author of ten books, and is the host of the popular radio show and podcast, The Pete the Planner Show. Pete is considered one of the foremost experts on financial wellness in the world, but he’s just as likely to talk your ear off about bass fishing.