Goal setting in face of financial adversity - part 1

When it comes to discussion around goal setting and achievement of those goals all the text books talk about having clear values, motivations, action plans and the like. They talk about time management and keeping focus as if it is something unknown to the 'uneducated' masses. But of course we might suspect that the people writing these books are not goal setting 'gurus', they are just writers who have decided to write a book that they hope to sell to make money. Quite simple.

However the one thing that many writers of goal setting books, coaches etc do not take into account very well is the influence of life/other uncontrollable or even some controllable events on the human psyche. Even the best laid plans for goals, even those you thought were important, can be adversely affected by other matters that are important. Today, briefly, I want to talk about how to consider setting goals even when you are being impacted by negative financial events.

So by now even the people living underground know that there is a massive upheaval in financial markets, asset worth and capital allocation in the world at the moment. Many of us are losing a good portion of wealth, seeing assets fall in value and becoming burdened with debt. Now another topic I will talk about soon is the fact that wealth is not real....but to most of us increased wealth makes us feel good and decrease makes us not feel so good. Many people I speak to say that their life goals are impacted by this feeling of becoming 'less wealthy' and seeing money being taken away from them. Many other goals are being pushed aside because of the stress of financial pressures and this is causing lack of motivation, determination, vision - even from those people who would state that they are not motivated purely by money.

This is not something that can be covered in one setting so I've made this part 1. At this time I would choose to leave you with these five thoughts;

1. Learn to focus on what you can control, not what you cannot control. Financial markets move in cycles and for 99.9% of us we cannot determine what happens. Therefore do not blame yourself for what has happened.

2. Whilst we all need money to live, take a breath and truly think about what money means to your lifestyle and way of life. Do you really need the money today? If financial markets move in cycles do you never expect your wealth to increase in the future? Exactly what have you lost? Perhaps it's not about the wealth itself, rather you feel something has been 'taken' from you. Take the emotion out of this thought!

3. Own up to yourself that being financially secure or even independently wealthy, or whatever it is, is important for you. Perhaps look at what you can do to control your finances better...but only within the realms of you can control.

4. Revisit your goals and ask yourself do you still want what achieving the goal will provide? Do they still equate to what you value as a human being. Refocus on these benefits and even include what you can gain financially. Standing still and doing nothing is not going to get you anywhere - if you keep on moving forward things will happen. This is a fact of life - action results in change of status quo.

5. Look at improving your knowledge of investments and perhaps consider taking charge of your own finances a little. Many finance professionals know little more than you in many respects. My other advice is to invest in what you know - I have a friend who invests only in his business only because he knows the value of this in detail.