Episode 28: How to Reverse Engineer Your Money Goals
Please, please, please, tell me you set some financial goals for 2023. Well, if you haven’t yet, you’re in luck!
In this episode, we'll talk about the best way to create and achieve money goals - Reverse Engineering. We'll discuss what should be considered when making money goals, understanding what your actual goal is and where you currently stand.
Key Terms to know:
Your Actual Goal. This is where you want to be—your end state. It’s where you would consider your goal achieved. If you set a goal to pay off your credit card, this would be when you’re finished paying it off.
Your Starting Point. This is where you are right now. Again, if your goal is to pay off a credit card, this is the amount you have on your credit card at this very moment.
Your Method. This is the journey you are taking to realize your goal—the steps you are taking to change your financial situation.
Your Milestones. Milestones are little markers along your journey that remind you of how far you’ve come. They are almost like mini-goals where you can celebrate and reflect on what’s going well and what’s not going well. If you’re paying off $5,000, you might consider every $1,000 paid off as a milestone.
