Episode Transcript
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Speaker 1 (00:00):
Hey there, folks.
Today we're diving intosomething that's as crucial to
your financial health as coffeeis to your morning routine
Setting goals, but not just anygoals.
Oh no, we're talking smartgoals, because who doesn't want
their goals to be as smart astheir phone?
Right Now, before you roll youreyes and think, here we go with
the goal setting lecture, stickwith me.
(00:21):
We're going to keep it light,keep it fun and, most
importantly, we're going to keepit practical.
By the end of this episode,you'll not only know what SMART
goals are, but you'll also havea plan to start crushing them.
And hey, I've even got a littlesomething special for you A
SMART goals worksheet that'llmake goal setting as easy as pie
(00:42):
.
More on that later.
Welcome to Low Income Rich Life,the podcast that helps you
prepare for a secure andfulfilling retirement, even on a
limited income.
Each week, we will explorepractical tips and strategies
for getting out of debt,lowering expenses, living a
(01:03):
simpler life and finding truecontentment.
Whether you're nearingretirement or just starting to
plan, join us as we navigate thejourney to a brighter future.
Let's dive in and discover howto make the most of your golden
years without breaking the bank.
Okay, so why are we talkingabout goals today?
Well, let's face it, moneyisn't something we can just wing
(01:23):
and hope for the best.
We've got to have a plan, andthat's where goals come in.
Think of them as like the GPSfor your financial journey.
Without them, you might end upsomewhere, but it probably won't
be where you wanted to go.
And let's be real who hasn'tset a goal like I'm going to
save more money this year onlyto find themselves splurging on
(01:44):
yet another gadget or that fifthcoffee of the day?
Yep, guilty as charged.
But here's the thing Settingclear, actionable goals can make
all the difference.
It's not about deprivingyourself, it's about giving
yourself a direction.
So why are goals so important?
Well, imagine trying to hit atarget with a bow and arrow, but
(02:04):
you're blindfolded.
That's what it's like trying tomanage your money without goals
.
You're just hoping you hitsomething, but more often than
not, you miss.
And let's be honest, no onewants to miss when it comes to
their hard-earned cash, whetherit's saving for retirement,
buying a home or finally gettingrid of that pesky credit card
debt.
Having a clear goal gives yousomething to aim for.
(02:25):
It keeps you motivated,especially on those days when
you'd rather binge watch yourfavorite show than think about
your finances.
And here's the kicker Goalsaren't just about what you want
in the far-off future.
They're also about what you needto focus on right now.
You've got to identify thosebig life goals like I want to
retire comfortably but alsobreak them down into smaller,
(02:46):
bite-sized pieces.
After all, you don't eat apizza in one bite, unless you're
some kind of superhero.
You tackle it slice by slice,and the same goes for your goals
.
Let's dive into some of thosebig ticket goals you might be
thinking about.
First up, saving for retirement.
It sounds daunting, but it'sreally just about putting away a
little bit at a time.
Think of it as planting seedsfor your future.
(03:07):
Then there's buying a home.
That's a biggie, but instead ofgetting overwhelmed by the
price tag, break it down intowhat you need to save for a down
payment, closing costs and soon.
And don't forget about thatcredit card debt.
Paying it off can feel likeclimbing a mountain, but with
the right plan, you'll be at thesummit in no time.
All right, so we've establishedthat goals are important, but
(03:29):
here's where it gets interesting.
How do we make sure these goalsactually stick?
Enter the SMART goals framework.
Now, smart isn't just a catchyacronym.
It stands for Specific,measurable, achievable, relevant
and Time-bound.
Basically, it's like givingyour goals a brain.
Smart, right?
Let's break this down.
(03:49):
First up, we've got specific.
Your goal needs to be clear andprecise.
None of this I want to be richsomeday nonsense.
Instead, try something like Iwant to save $10,000 for a down
payment on a house.
See the difference.
Next, we've got measurable.
How do you know you're makingprogress If your goal isn't
measurable?
(04:10):
You're just guessing.
So instead of saying I want tosave more, say I want to save
$500 a month.
That way you can track yourprogress and know when you're on
track or when you'reaccidentally wandered off course
.
Then there's achievable.
Look, I'd love to say my goalis to become a billionaire by
(04:30):
the end of the year, but let'sbe real, that's not happening.
Your goal needs to be somethingyou can realistically achieve
given your current situation.
Stretch yourself, sure, butdon't set yourself up for
failure.
Now relevant is all aboutmaking sure your goal actually
matters.
Ask yourself why is this goalimportant to me?
If you can't answer that, thenmaybe it's time to rethink it.
(04:50):
Your goal should align withyour broader life plans and your
personal values.
And last but not least, timebound.
Deadlines are your friend here.
If you don't give yourself atimeline, your goal is just a
wish.
Saying I want to save $10,000is good, but saying I want to
save $10,000 in the next 18months is better.
(05:11):
Now you've got a finish line tocross.
Hey, there, I hope you'reenjoying today's episode.
I wanted to take a quick breakto tell you about something
awesome our Facebook group.
If you're looking to connectwith like-minded folks who are
all about taking control oftheir finances and living a rich
life on a low income, thenyou've got to check it out.
(05:31):
In our group, we share tips,stories and support each other
on our financial journeys.
Whether you're working onbuilding your emergency fund,
planning for retirement or justtrying to make smarter money
moves, this is the place to be.
Plus, it's a great way to stayin the loop with all the latest
updates and content from thepodcast.
So if you haven't joined yet,what are you waiting for?
Head on over to facebookcomslash group, slash low income
(05:55):
rich life and hit the joinbutton.
I can't wait to see you there.
Now let's take a closer look ateach of these components with a
few examples.
Specific is about being crystalclear.
For instance, instead of sayingI want to save money, you could
say I want to save $3,000 for avacation next year.
It's clear, it's precise and ittells you exactly what you're
(06:19):
working towards.
Measurable let's talk abouttracking.
Imagine you're trying to loseweight.
You wouldn't just say I want tolose weight and leave it at
that.
You'd step on the scaleregularly to see if you're
making progress right.
The same goes for yourfinancial goals.
If you want to pay off debt,set a measurable goal.
Like I will pay off $500 of mycredit card debt every month.
(06:42):
That way, you can see yourprogress and adjust if needed.
Achievable is where you get realwith yourself.
Sure, it's great to dream big,but your goal needs to be within
reach.
If you're making $50,000 a year, saving $100,000 in one year
might be a bit of a stretch.
Instead, set a goal that pushesyou but is still doable, like
(07:02):
saving $5,000 for an emergencyfund.
Relevant is all about makingsure your goal aligns with your
life.
Why do you want to save that$5,000?
Is it for peace of mind, for arainy day?
If the goal doesn't matter toyou, it's going to be hard to
stay motivated.
Make sure your goal haspersonal meaning and time-bound.
This is where you put adeadline on your goal.
(07:25):
A goal without a deadline isjust a dream.
Give yourself a timeline, likesaving that $5,000 over the next
12 months, and watch how muchmore focused you become.
Now that you've got the basicsdown, it's time to get hands-on.
I've put together a Smart Goalsworkbook.
That you've got the basics down, it's time to get hands-on.
I've put together a smart goalsworkbook that you can download
right now.
It walks you through each ofthese steps so you can set your
(07:46):
own smart goals, whether it'ssaving for a vacation, paying
off a loan or just being able tosplurge on something guilt-free
.
Head over tolowincomerichlifecom slash smart
to grab it, or you can look fora link to it in the show notes.
Let's go through an exampletogether.
Say you want to save for thatvacation I mentioned earlier.
On your worksheet, you'd startby writing down your specific
(08:08):
goal I want to save $3,000 for atrip to Hawaii next summer.
Next, you would make itmeasurable by breaking it down.
I'll save $250 a month for 12months.
Is it achievable?
Well, you'll need to look atyour budget and see if $250 a
month is realistic.
If it is great.
If not, maybe you adjust thetimeline or the destination.
(08:31):
Make sure it's relevant.
Do you really want thisvacation?
If the answer is yes, then it'sworth working towards and
finally set that time-bounddeadline.
I'll have $3,000 saved by June1st next year.
See how easy that is.
By following these steps,you're giving your goals
structure and you're making itmuch more likely that you'll
(08:53):
actually achieve them.
Plus, there's something reallysatisfying about checking off
those monthly savings goals onyour worksheet.
So now you've got your SMARTgoals all laid out and you're
feeling pretty good about it.
But what happens when lifethrows you a curveball?
Because, let's be real, life isfull of surprises and not all
of them are the good kind.
Maybe you've set a goal to saveup an emergency fund, but then
(09:15):
your car decides it's had enoughand needs a major repair.
Or maybe you plan to pay offyour student loans by a certain
date, but you suddenly findyourself dealing with unexpected
medical bills.
It's like planning a picnic andthen getting hit with a
thunderstorm Definitely not whatyou had in mind.
But here's the thing Justbecause you've hit a roadblock
doesn't mean you have to give upon your goals.
(09:36):
Goals aren't set in stone.
They're more like guidelinesthat help you navigate life's
different twists and turns.
And just like you can rerouteyour GPS, you can reroute your
goals.
Let's say you were saving for adown payment on a house, but
your hours got cut at work.
Instead of throwing in thetowel, you might adjust your
timeline or look for other waysto save.
(09:56):
Maybe you find a side hustle ormaybe you cut back on some
non-essential expenses.
The important thing is to stayflexible and keep moving forward
, even if the path looks alittle different than what you
had expected.
And don't forget sometimesadapting your goals can actually
make them stronger.
For instance, if you get araise at work, you might decide
(10:16):
to save more each month or payoff debt faster.
The key is to regularly revisityour goals and make adjustments
as needed.
Life isn't static, and yourgoals shouldn't be either.
I remember a time when I had toadapt one of my goals.
I'd set a goal to pay off acredit card by the end of the
year.
Things were going well and Iwas making steady progress until
(10:37):
my water heater decided it wasdone with life.
Suddenly, I had a big,unexpected expense to deal with
Instead of panicking okay, maybeI panicked a little, but I
adjusted my goal.
I pushed back the payoff dateby a few months and reallocated
some of my funds to cover therepair.
It wasn't ideal, but it workedout.
The lesson here flexibility isyour friend.
(11:00):
So let's recap Setting smartgoals is like giving your
financial plans a brain.
It makes them specific,measurable, achievable, relevant
and time-bound.
And while life might throw acurveball or two, being
adaptable means you can keepmoving forward, even if the path
looks a little different thanyou expected.
(11:21):
Remember, folks, the journey tofinancial freedom isn't a
straight line.
It's got ups and downs anddetours, but with SMART goals,
you've got a roadmap that'llhelp you get to where you wanna
be.
And don't forget to grab thatSmart Goals workbook over at
lowincomerichlifecom.
Slash smart.
It's the perfect tool to helpyou start planning for your
(11:42):
future.
Today, and here's a littlechallenge for you Take one of
your goals and run it throughthe Smart Framework, see how it
feels and, if you're feelingbrave, share it with me on
social media.
I'd love to hear what you'reworking on and how you're
adapting your goals to yourlife's little surprises.
That's it for today's episode,folks.
Thanks so much for tuning in.
If you found this episodehelpful, do me a favor share it
(12:05):
with a friend and let's helpmore people get on track with
their financial goals.
And if you've got a minute,leave a review.
It really helps out the show.
Next week I'll be back withanother, hopefully helpful topic
for you, so make sure yousubscribe so you don't miss it.
Until then, keep working onthose goals and remember future.
(12:26):
You will thank you for thesteps you take today.
Thank you for joining us on thisepisode of Low Income Rich Life
.
I hope you found today's tipsand strategies helpful.
If you enjoy the show, pleasesubscribe, rate and leave us a
review on your favorite podcastplatform.
Your feedback helps us reachmore listeners and improve the
content we bring to you.
Don't forget to visit ourwebsite at lowincomerichlifecom
(12:47):
for additional resources, shownotes and links to everything we
discussed today.
You can also join theconversation in our Facebook
group at facebookcom slash groupslash lowincomerichlife for
more updates and retirement tips.
Remember, a truly rich life isnot about how you spend your
money, but how you spend yourtime.
I'm Kevin Bass, wishing you aprosperous and joyful retirement
(13:11):
journey.
Stay well and stay inspired.