Commitments and Goals Play Important Roles in Remaining Debt-free
If you’ve been in excessive consumer debt before, writing down your goals to live without debt can provide motivate you to stay away from debt.
Studies clearly show that the more formal, detailed, and official you make your commitment to any goal, the more likely you are to achieve it.
Write It Down
Remember that financial goals are not about money. Money is secondary. Money is the tool you will use to achieve the goal.
The goal has to be something meaningful. The goal should also be achievable within the coming 6 months to 3 years so that it does not become too abstract or distant. Make it something you can relate to each day.
Write down your goal and include three to five steps you must take in the next six months to three years in order to achieve your goal.
Example of a Meaningful Goal
On July 31, 20XX, I will have saved $4,500 to take the family on a 5-day vacation to the Oregon Coast.
Sample Next Steps
- I will set up a separate savings account just for my vacation funds.
- I will set up a direct deposit at work to deposit $125 per paycheck into the vacation savings account.
- I will reserve a room at the Signet Lodge by January 1, 20XX.
- I will set alerts today in my phone calendar to remind me of these steps.
Optional Activity – Your Turn
- Write down what you want to achieve financially with a brief explanation of why it matters to you.
- Write three to five relevant and required steps
Be specific. Then, complete and sign the form to indicate your commitment to start your journey.
