I have found different formulas for creating a goal.

One goal I am considering is to lower my monthly payment each month. Of course I can do this by just paying my bills, but it’s kind of interesting to see how much each dollar helps in making that minimum payment go down. For me, every dollar that I pay makes my monthly payment go down by two cents. With this in mind, I can visualize how much lower it will be each month. I would set a achievable goal each month such as lowering it by 50 cents more than the minimum payment. Then of course, I would pay $25 extra. Alright, so 50 cents might not seem like much but let’s say six months from now I have less money to pay my bills with.

6 months x 50 cents = $3

So that’s at least three dollars I am saving off that minimum payment.

Another great method of goal settings is what I call “the thermometer method.” This is actually one of my favorites. What I do is add up all my debt and write down the number so I don’t forget it. Then I go and get a long piece of paper or cardboard. The longer the better. Then I draw a really long thermometer and put how much I owe, in total, at the top. I then put 100 or so equally sized lines in it so that there are ton of segments. I have found that the more segments I put in, the more motivating the project. Then I count the segments. Let’s say that I put in 100 segments. Then I divide my total debt by number of segments.

I would take my debt of $30,000 / 100 segments.

That equals $300. So for every $300 I pay toward my debt, I get to color in a segment at the bottom of the thermometer. I usually add up my bills at the end of the month and check the difference of the previous month’s bills to find out if I’ve hit the $300 mark. If I paid something weird like $340, I write down the $40 to go toward the next segment when I complete it. Also, if I don’t pay the $300 mark in a specific month, then I write it down so that it will eventually go toward the next segment.

There are many different ways to set goals, but I have found these to work the best for me. I have found that when I can visualize a difference, that it not only makes it easier to set goal, but it makes me feel a lot more motivated.

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