Aligning Actions With Your Goals
“A goal without an action plan is a daydream.”
We’re only a month into the New Year, and if you’re anything like us, that brings an inundation of resolutions with many geared towards diet, exercise, enjoying the present, and the like. Hopefully, this isn’t more of the same – not that you’d take fitness tips from us anyway! Instead, we hope this serves as an encouraging reminder about something we know to be true and gives some helpful application.
The truth is that all goals – no matter the endeavor – are similar. We all have them, while our lives are often better off if they come to fruition. The problem is we tend to sacrifice what we want most for what we want now. Achieving our goals means consistently doing the opposite: sacrificing the enticing and attractive short-term gratification for the more important (and more beneficial) long-term reward. Although I was not a personal trainer, my work running a fitness company taught me many things. Our personal trainers would commonly tell clients, “There are two important things that can’t pick themselves up: weights and forks.” The takeaway? Clients needed discipline in the gym and at the table to achieve their goals. It’s something the client already knew, but the consistent reminder was helpful.
When it comes to our financial goals, the same is true. Most people know the financial planning basics – they’re simple:
· Spend less than you earn
· Put money in savings
· Wisely invest for the future
Even the above actions are easier said than done. And what about the specifics? How much is enough? What’s the most tax efficient way? What if bad things happen? That’s where the challenges arise.
No Two Journeys Are The Same
If you were to hire a personal trainer and all they told you was, “Watch what you eat and exercise daily,” you’d ask for a refund. Yes, eating better and exercising can help make a person healthier, but it doesn’t guarantee you’ll meet your fitness goal.
You would want to know how much to eat and what to eat. How often should you be exercising? What type(s) of workouts and for how long?
The answer to those questions are not standard for everyone. They depend on where the individual is at the start of their journey, what the end goals are, the individual’s limitations, and timelines for the goals.
The same is also true for our financial health. Spending less than you make and putting money away for the future are great principles, but it’s nowhere near enough information to have peace of mind.
Begin With The End In Mind
Dr. Stephen Covey’s Seven Habits of Highly Effective People is a best-seller for a reason. Before we can align our actions to our goals, we must first know what our goals are. “Being Healthy” (physically or financially) is not an acceptable goal. The more details, the better.
“I want to run a marathon next January in under 5 hours” is much more conducive to putting a plan in place compared to “I want to try to run a marathon.”
In the same way, “I want to retire when I turn 60 and be able travel a couple times a year without sacrificing my current lifestyle” is a much better jumping-off point than “I want to make sure I have enough money to retire before I’m too old.”
Our recommendation? Write your long-term goal(s) down. Know exactly what you’re aiming for. Then, you can get to work on a plan that can get you there.
Set Reasonable Expectations
Once you’ve defined your goals, ensure they’re attainable. Nothing ends a goal faster than an impossible mission.
Can you run a marathon? Of course you can! Can you do it next week? Well…
For most of us, this isn’t likely. If you’re a runner who’s been logging the miles and preparing physically and mentally for the challenge, you have a shot. If you’re trying to go from the couch to a marathon in a week, you’re probably going to hurt yourself.
Can you retire early? It happens all the time! Can you retire at 50 traveling the world in luxury and still have ample assets for aging care needs and a large estate for the kids? Well… for most, this is not likely.
Setting reasonable expectations for your goals and finances is paramount to one day fulfilling them.
Give Yourself Grace
In addition to setting realistic expectations, we should allow room for error in the journey. In theory, the stricter you are with the execution of your plan, the higher probability of success. In practice, this can be a bit trickier.
When following a diet, allowing a ‘cheat meal’ here or there can actually allow for more sustainability. Viewing Saturday morning donuts as a reward for a hard week’s work gives you something to look forward to rather than thinking you must constantly deny yourself something you want.
Similarly, when sticking to a budget, it isn’t altogether bad to allow a ‘splurge’ every once in a while – just be sure to monitor the splurges and ensure they’re an exception and not the rule. When out-of-budget purchases are made consistently, it becomes part of the lifestyle instead of a treat.
Don’t Go It Alone
Legendary coach John Wooden once said, “If you want to go fast, go alone. If you want to go far, go together.”
No matter your goal, having a support system and proper guidance drastically increases your odds of success.
In fitness, this could be a workout partner, personal trainer, dietician, coach, fitness app, or any combination. There’s nothing wrong with getting help. We often don’t know what we don’t know. The internet and AI can give us some helpful information, but the encouragement of friends and guidance from professionals who know what they’re talking about is invaluable.
The same is true with finances. Being on the same page as your partner is a “must.” There are plenty of resources online for budgeting and financial accountability, but finding professionals you trust can make a real difference in turning your objectives into reality.
Take Action
“The best time to plant a tree was 20 years ago; the second-best time is today.”
People often suffer from ‘paralysis by analysis.’ There are too many factors to consider. Where should I invest? How risky should we be? What are the differences in these accounts? Can I trust someone else with my money?
There are thousands of excuses we give ourselves to not do something – even if it’s something we say we want. We’re not 100% sure what our goals are. We’ll just do our best, save a lot, and hope for the best. It’s too daunting. We don’t have the time. Where I am is too embarrassing.
You can do it! Your goals are worth the work.
Whatever it is you’re wanting to achieve in 2025 and beyond, we believe in you.
If you need help in your financial journey, we’re here for you and others you care about.
I’d like to introduce the author of this blog and our newest employee to the Planning and Advisory team here at Penney Financial. I have known Josh Graber for nearly 20 years, and there are very few people out there who can match his intellect, authenticity, and integrity. With his entrepreneurial background and experience in buying, selling, and running businesses, he is and will continue to be an incredible asset to our team and the clients we serve. As a Senior Associate, he’ll be assisting Kali and myself in the ongoing planning and advisory services for our clients.
- Cameron Penney
Check out his bio here on our website.
