Importance of SYSTEMS in achieving Financial GOALS

Whenever you see anyone who has set a certain benchmark for you – do you feel inspired?

Do numerous thoughts run through your mind?

Do you feel the urge to be at that position?

Do you think what made them attain that place?

If your answer is a YES then lets come straight to the point which is a small word but with great and infinite dimensions;

The word is GOAL. This 4 letter word envelops our life’s all acquisitions, possessions, achievements and accomplishments. These are a few parameters that help us to measure our success.

goal vs system

GOAL

We all have different ideas and perception of the word GOAL.

Goals are of different types as:

  • FINANCIAL GOALS
  • ACADEMIC GOALS
  • FITNESS GOALS
  • SPIRITUAL GOALS
  • PERSONAL GOALS
  • RETIREMENT GOALS
  • CAREER GOALS

Now let me elaborate a little

These days’ people do a lot of things like:

  • Going to gym
  • Take a healthy diet, avoid junk food.
  • Do meditation
  • Detox etc to name a few.

Can you understand why all these things are followed, perhaps you hit it right. It’s simply because their GOAL is FITNESS.

But can you imagine achieving this without following a plan?

No one can!!!

That’s because without system and discipline you cannot be consistent and gain what you want, as goes an old saying ‘NO PAIN NO GAIN’.

Read – Setting SMART Goals

Financial Life Planning System ©

Check the system that we have built with more than 10 years Financial Planning Service Experience.

financial life planning system tfl

GOAL VS SYSTEM

But imagine that what if a person followed only SYSTEM without pursuing a GOAL would he still be successful?

My answer is ‘MAYBE’– but can someone achieve Goals without System – my answer is ‘NO’.

When you focus and pursue a system whether it your daily exercise or habit of saving money you ought to end up getting something.

So the crux is that in order to achieve anything in life first you need to clearly identify what is our goal.

But that’s not enough. It’s just the beginning; there is something more important that follows which is called as SYSTEMS.

Now don’t get confused!

You need to know that both when GOAL and SYSTEMS become hand and glove you can catch success.

Isn’t that interesting!

Now I shall share with you a few tips to make both of them work together.

Let’s start talking about what may matter most in your life at any point in time.

Yes, you guessed it right. I’m talking about making and putting money in an organised way we can call it, IMPORTANCE OF SYSTEM TO ACHIEVE FINANCIAL GOALS.

Theoretically, it may seem absolutely clear to have and allocate money for these long-term financial goals

But honestly speaking it’s not at all a cake walk.

Goals build more stress and pressure but if you stick to a system – you can enjoy the journey.

When you get committed to a system it becomes part of your habit thereby actions leading your path.

I don’t mean to scare you but I believe it’s my responsibility to share the ground reality with you.

Life is not as predictable or convenient as shown in television and advertisements.

InfographicsMaslow’s Hierarchy of Needs & Your Financial Goals

SYSTEM

In order to make your future safe and be prepared for the inevitable, you need to change from ‘I think wisely’ to ‘I execute systematically’.

Here you can see a few tips to start with this process that you can call a budgeting system:

  • Maintain a diary to see and check your everyday expenses.
  • Sit with your partner at least once a week and discuss about savings.
  • Brainstorm your ways to improve your financial future.
  • Compare your income and expenditure every month with previous month’s.
  • Prioritise your expenditure.
  • Keep track of your activities.

When you have some of the mentioned points as a system in your life you will eventually have something for your future and for your rainy day.

I’ve found that goals are good for planning your progress and

systems are good for actually making progress.

Goals can provide direction and even push you forward in the short-term, but eventually a well-designed system will always win. Having a system is what matters. Committing to the process is what makes the difference.

ReadBudgeting: First Step of Financial Planning

NO SYSTEM

If you are good at one or two things that are mentioned in the below list – that may not help. You have to add all this & much more to a bigger financial system:

  • Think of saving predictable and feasible amount of money.
  • Make a list of areas where you can avoid spending.
  • Try to settle for less in some areas. Example if you want to buy a pair of jeans check out different brands and online offers before you impulsively pick your choice.
  • Most important: STAY IN TOUCH WITH YOUR FINANCIAL PLANNER to help you to save and invest with discretion.
  • Do not pile on too many EMIs and debts.
  • Do one thing at a time.
  • Be practical. Don’t expect full moon on a new moon day. Rather wait for the right time.

So all I intend to say is that be CONSISTENT and fall in love with SYSTEM rather than planning and thinking of goals and you shall see how the seeds sown today become a beautiful and fruitful tree tomorrow.

All you need to do is systematically water, nurture and be patient.

As rightly said by someone:

“People often confuse confidence with a display of magnificence. I speak with some years of observation on people who become an inspiration to many; confidence mostly comes from being habitually consistent.”

Please share if you follow any system in personal & financial life.

Print Friendly
Previous articlePersonal Finance Lessons From Kar”Nataka” Election
Hemant Beniwal is a CERTIFIED FINANCIAL PLANNER and his Company Ark Primary Advisors Pvt Ltd is registered as an Investment Adviser with SEBI. Hemant is also a member of the Financial Planning Association, U.S.A and registered as a life planner with Kinder Institute of Life Planning, U.S.A. He started his Financial Planning Practice & TFL Guide Blog in 2009. "The Financial Literates" is a dream & mission to make Indians Financial Literate.

LEAVE A REPLY

Please enter your comment!
Please enter your name here