Upload
barbara-oneill
View
93
Download
7
Embed Size (px)
DESCRIPTION
Slides describing how to set personal and farm business goals.
Citation preview
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