goal-setting presentation for personal and farm business goals
DESCRIPTION
Slides describing how to set personal and farm business goals.TRANSCRIPT
Goals and Strategies for Small Scale Animal
Production Barbara O’Neill, Ph.D., CFP®
Extension Specialist in Financial Resource Management Rutgers Cooperative Extension
About the Instructor • Rutgers Cooperative Extension Specialist in
Financial Resource Management since 2004
• Extension Educator in Sussex County (1978-2004)
• Certified Financial Planner®
• Charter member of Annie’s Project NJ team
• Twitter handle: @moneytalk1
Workshop Topics • Goal Quotes
• What are Goals?
• Goal Advantages and Obstacles
• Steps to Setting Goals
• Developing SMART Goals
• Farm Business Goals
• Goal-Setting Resources
• Accountability Tools
Goal Quote #1 “A goal is a dream with a deadline” Napoleon Hill
Goal Quote #2 “ A goal is not always meant to be reached, it often serves simply as something to aim at.” Bruce Lee
Goal Quote #3
“Setting a goal is not the main thing. It is deciding how you will go about it and staying with that plan” Tom Landry
Goal Quote #4 “Those who fail to plan, plan to fail”
Goal Quote #5 “Setting goals is the first step in turning the invisible into the visible.” Tony Robbins
What Are Goals? A goal is a statement of what an
individual, family, or organization
(e.g., farm business enterprise)
wants to achieve in the future
Why Set Financial Goals? • Provide focus and direction
• Provide motivation to save and invest
• Provide “reality test” for dreams
• Serve as reference points for progress
• Aid decision-making
• Provide satisfaction when achieved
• Other?
Obstacles to Goal-Setting • Lack of motivation/desire
• Lack of role models
• Lack of time
• Uncertainty about how to set goals (process)
• Fear of not taking action to reach goals
• Other?
Start With Your Dreams (Bucket List)
Set Measurable Financial Goals
• Without goals, saving/investing is hard to sustain
• Need to have a “why” to invest (whatever it is)
• A goal should be personally meaningful
• Break a big goal into “mini” goals: – $1 million by age 65
– $500,000 by age 57
– $250,000 by age 50
Make Your Goals SMART • Specific: who, what, where, when, why?
• Measurable (e.g., progress benchmarks)
• Attainable (within your ability to achieve)
• Realistic (goals that “fit” lifestyle)
• Tangible (visualization = motivation)
http://www.extension.org/pages/11099/smart-financial-goal-setting#.Ux9joE2YaM8
Examples of SMART Goals • “Save $10,000 toward the cost of a new car in four
years”
• “Save $3,000 for a cruise in two years”
• “Save 10% of salary annually in a tax-deferred employer retirement savings plan”
• WRITE a personal SMART goal
Financial Goal-Setting Worksheet
http://njaes.rutgers.edu/money/pdfs/goalsettingworksheet.pdf
1 Goals
2 Approximate Amount Needed
3 Month & Year Needed
4 Number of Months to Save
5 Date to Start Saving
6 Monthly Amount to Save (2-4)
Short-Term (under 3 years)
Medium Term (3-10 years)
Long-Term (10 or more years)
Business Goal-Setting Benefits
• Important to individuals and families and business interrelationships
• Revisiting goals annually provides a forum for discussion
• Goal-directed management improves farm/ranch efficiency
• Reaching goals provides a feeling of accomplishment and pride
Adapted From: Managing for Today and Tomorrow: Succession, Business, Estate, and Retirement Planning for Farm and Ranch Women
Seven Steps to Setting Farm Business Goals
• Assess where operation was in the past
• Assess family and farm/ranch resources
• Develop a general management plan
• Identify and establish specific goals and objectives
• Prioritize goals
• Develop action plans to implement goals
• Measure progress and reassess goals
Adapted From: Managing for Today and Tomorrow: Succession, Business, Estate, and Retirement Planning for Farm and Ranch Women
Prioritizing Goals • Which goals are most important for family and/or
business well being?
• Which goals are short-term and long term?
• Do short-term goals conflict or impede long-term goals?
• Which goals are so important that they should be attained even if it prevents reaching other goals?
Adapted From: Managing for Today and Tomorrow: Succession, Business, Estate, and Retirement Planning for Farm and Ranch Women
WRITE Some Farm Business SMART Goals
Examples: • “We will expand our herd to “X” [Name of Livestock] by
[Date]”
• “We will sell “X” pounds of [meat, wool, milk, etc.] by [Date]”
• “We will have 1,000 Twitter followers by [Date]”
• “We will earn “$X” of annual income by [Date]”
Goal-Setting Resources
Rutgers Cooperative Extension Money and Investing Site
http://njaes.rutgers.edu/money/
RCE Financial Fitness Quiz http://njaes.rutgers.edu/money/ffquiz/
What is Your Risk Tolerance?
Take the Rutgers Cooperative Extension Investment Risk Tolerance Quiz: http://njaes.rutgers.edu/money/riskquiz/
Small Steps to Health and Wealth™
What People Think About, They Bring About!
http://njaes.rutgers.edu/sshw/
The Ball Park Estimate • Six easy steps; can do online or download paper worksheet • Can do online at www.choosetosave.org • Flexible annual retirement income and life expectancy figures • Assumes a 3% constant real rate of return
Helpful Extension Goal-Setting Publication
• Goal Setting for Farm and Ranch Families (Oklahoma)
• Includes Goal Setting Worksheet for business goals
• http://pods.dasnr.okstate.edu/docushare/dsweb/Get/Document-1674/F-244web.pdf
Accountability Tools • Spreadsheets
• Online calculators
• Calendars
• Post-it Notes
• Automated text messages
• Automated saving/investing deposits
• http://www.futureme.org/: e-mail yourself savings goal reminders
Avoid Goal-Setting Pitfalls Try NOT to…
• Make goals too lofty
• Do too many things at once
• Leave yourself vulnerable to unexpected events
• Fail to use available information
• Set goals without including all decision makers
• Ignore good plans once you develop them
Adapted From: Managing for Today and Tomorrow: Succession, Business, Estate, and Retirement Planning for Farm and Ranch Women
Comments? Questions? Experiences?
Barbara O'Neill, Ph.D., CFP®
Extension Specialist in Financial Resource Management and Distinguished Professor Rutgers University Phone: 848-932-9126
E-mail: [email protected]
Internet: http://njaes.rutgers.edu/money/
Twitter: http://twitter.com/moneytalk1