Setting goals is an essential part of attaining loans after bankruptcy. Goals provide you with a way to track your finances and feel good when you achieve your desired outcome. Goal setting is an important part of creating a budget, investing, paying off loans, and pretty much anything money-related. In this article, we will go through the importance of creating goals and how to set realistic goals for your finances. But, first, we need to define some key vocabulary.
Goal: The object of a person’s ambition or effort; an aim or desired result.
Short-Term Goal: A goal that can be completed in under 6 months.
Long-Term Goal: A goal that can be completed in over 6 months.
Now that we have the necessary vocab, follow along below to learn more about financial goal setting, so that you can get loans after bankruptcy.
Why goal setting is important to loans after bankruptcy.
Making goals is important to getting loans after bankruptcy because they help you stay on top of your finances. For many people, goals provide you with the foundation for a realistic financial plan. Taking the time to come up with goals forces you to create an achievable timeline and a plan in order to hit your target. Moreover, they allow you to track your progress and see how far you have come. This is crucial, as it helps you stay motivated and on track. Setting short-term and long-term goals establishes accountability and lets you celebrate every once and a while. In addition, goals pressure you into prioritizing what’s important, so that you can achieve the outcome you desire. Goal setting has all sorts of benefits and now that you are familiar with the why, it is time to move on to the how.
How to set realistic goals.
Now that you know the difference between a short-term goal and a long-term goal, and you have figured out why goals are important, it’s time to tackle how to set a goal. Formulating your goals is the most critical part of the goal process. Most people assume it is hitting the target outcome that matters. However, you can’t achieve your goals if they aren’t smart. In our “Budgeting after bankruptcy and car loans” article, we wrote a brief section on how to set goals. S.M.A.R.T goals is a method to test and come up with goals that you will be able to attain. But, what does S.M.A.R.T mean?
S – specific
A goal that is specific has lots of detail. For instance, if you wanted to set a goal on creating an emergency fund for yourself you might set the goal “I want to create an emergency fund and have $500 saved”. This goal is specific, but it lacks measurability and a timeframe. See how you can improve this below.
M – measurable
A measurable goal lets you track progress so that you know when you’re close to hitting your target! Adding a time value to the above goal would make it much easier to measure. For example, “I want to create an emergency fund and have $500 saved in 1 month”. This goal is now specific and measurable, but is it attainable?
A – attainable
An attainable goal is something that you can definitely achieve. You should have confidence and enough time to reach your goal without exerting too much effort. Take a look back at the goal above: “I want to create an emergency fund and have $500 saved in 1 month”. This goal might be attainable for some but for others, it may be too much money in too little time. Changing the amount and time required to suit your goals is essential. A more attainable example might be, “I want to create an emergency fund and have $500 saved in 2.5 months”.
R – realistic
A realistic goal is something that challenges you in order to meet the desired outcome and also helps you get ahead with other goals. If you know your city gets lots of floods, and flood season is approaching in 4 months, having an emergency fund could be of great help. If this was the case you might change your goal to read “I want to create an emergency fund and have $1200 saved in 4 months”.
T – timely
Goals that are timely can be measured, attained, and should challenge you a bit. Timely goals should come with an action plan. Think about how you might come up with a plan to achieve this goal: “I want to create an emergency fund and have $1200 saved in 4 months”.
- How would you save the money?
- Where would the money come from?
- How often would you contribute to the account?
- What would you do if you didn’t reach your goal?
Contact TransCan Leasing for Help With Loans After Bankruptcy Today!
Getting loans after bankruptcy can be a difficult process. By setting goals for yourself over the holidays you can make 2022 your best year yet! We look forward to helping all of you achieve your financial goals in the new year. If you have any questions or concerns please feel free to contact us at any time. You can also follow along on Facebook!