Setting Short-Term Goals That Will Motivate You

Posted on 26 February, 2018 by Fadwa A.Soliman in Personal Development

Setting Short-Term Goals That Will Motivate You, Now that you have some long-term goals defined and something to work towards, you need to break these goals down into short-term goals.

Let’s assume that your time frame for the long-term goals that you have chosen is five years from now. That means that you can break them down into short-term goals for each year of the next five years.

You may even have to break them down even further, such as monthly goals, but we’ll get into that later. For now, let’s stick with breaking them down into yearly goals. Let’s refresh our five-year, long-term goals one more time.

GOALS by December 31st, (Approximately 5 years from today)

1. To be making $2500 a month before taxes and have $10,000 in savings. (Financially prepared to have a family)
2. To be willing and able to commit to a long-term relationship. (Emotionally prepared to have a family)
3. To weigh 180 pounds or less. (Physically prepared to have a family)
4. To have been working in the desired occupation for 1 year or more (Have a career that you love doing)
5. To have a credit score of 700 or above and have $10,000 in savings for a down payment on a house. (To own your own home)

So, what you need to do is figure out what you can do towards this goal in one year’s time. The most important thing in determining how far you can go is to understand where you are starting from. To take just one example from our list, getting your credit score to 700 within five years will be a lot easier if you are starting from 650, but if your score is in the 400 range and you have lots and lots of collection accounts you are probably not going to raise that score very fast.

So, knowing where you are starting from will determine the time-period of your long-term goals as well as what sort of milestones you can set for your short-term goals.

Let’s stick with the credit score example as we look at setting short-term goals. Let’s suppose that your credit score is 550 right now, and you want to have a score of 700 or above in about five years. This is a perfectly achievable goal, by the way.

So, to set your short-term (yearly) goal for the first year, let’s suppose that your credit report looks like this.

EXPERIAN CREDIT REPORT

John Doe
123 XYZ Street
Burbank, CA 90036

FICO Score: 539 out of 850

Collection Accounts (Closed): 16 (-160 points)
Paid-in-Full Accounts (Closed) 1 (+15 points)
Current Accounts: 1 (+10 points)
Accounts 30 Days Overdue: 7 (-35 points)
Accounts 60 Days Overdue: 3 (-18 points)
Accounts 90 Days Overdue: 11 (-77 points)
Accounts 120 Days Overdue: 2 (-16 points)

This is obviously a very simplified example credit report. The numbers next to each account type show how many points (+ or -) your score is affected by for each account type.

You get points added to your score for current or paid-in-full accounts and you get points taken away from late payments or collection accounts. Of course, in reality, credit scores are much more complex taking in factors like credit-to-debt ratio, revolving accounts, public records like judgments and age of the accounts. But this example is intended to show you what kind of things can be done to improve your credit score.

So, if you were planning to set some goals for the first year, your first set of short-term goals, you can look at this and see that there are many things that you can do to improve your score. You could catch up on the accounts that are currently behind, you could pay off some accounts, you could pay off some of the collection accounts (or wait for them to drop off your report) and several other options.

 

Setting Your Goals

In order to determine what your goals should be for the first year, you need to look at your budget and available options and decide what you can do to fix your credit report in the first year. Here is an example of what you could do.

Short-Term Goals (By December 31st, Year One)
1. To be making $2500 a month before taxes and have $10,000 in savings. (Financially prepared to have a family)

  • Decide on a career choice.
  • Find out what training is required for career choice.
  • Get trained by taking classes, or on-the-job experience.
  • Apply to at least 20 companies within that career field (or until hired).
  • Save $1000 during this first year.

2. To be willing and able to commit to a long-term relationship. (Emotionally prepared to have a family)

  • Begin dating. Go out on at least 30 dates over the first year.

3. To weigh 180 pounds or less. (Physically prepared to have a family)

  • Join a gym within 30 days.
  • Workout 3 times per week.
  • Choose a diet plan and stick to it as closely as possible.
  • Lose 15 pounds the first year.

4. To have been working in the desired occupation for 1 year or more (Have a career that you love doing)

  • Decide on a career choice.
  • Find out what training is required for career choice
  • Get trained by taking classes, or on-the-job experience
  • Apply to at least 20 companies within that career field (or until hired)

5. To have a credit score of 700 or above and have $10,000 in savings for a down payment on a house. (To own your own home)

  • Pay off 5 closed collection accounts and request removal.
  • Don’t allow any more accounts to become overdue.
  • Bring 5 overdue accounts to current.
  • Raise score by at least 25 points during that first year.

As you can see, you have some very specific goals that you are going to try for during the first year of your five-year-plan. These are your short-term goals.

One thing to keep in mind is that these should not be absolutely inflexible. You should do your very best to attempt to reach every one of these goals of course, but on goals that are out of your control (such as raising your credit score 25 points or more), you should remain flexible. If you have done your very best to achieve the short-term goals but you were only able to raise your score 22 points, that is still a victory.

Check out the series from the beginning

1- How to Clearly Define Your Desires

2- How to Conquer Your Fears & Discover Yourself

3- Setting Long-Term Goals You Can Achieve.