The Importance of Goal Setting in Your Finances

Many people have never asked themselves what their long term personal and financial goals are. It can be very valuable to reflect on this question because ultimately the way that you organise your finances is dependent on what your goals are. You need to understand what your definition of wealth because this will set up what your ultimate financial goal is. Sometimes in a materialistic society it can seem that the only thing that really matters about a person is how much money they have. It has been shown time and time again in emprical research that there is only a very weak correlation between financial wealth and security and the emotional aspects of happiness.

It is a truism, but the best things in life cannot be bought. Most people who look back at the best moments in their life are not associated with how much money you have. The best things in life life playing with your kids, meeting your spouse, your wedding day or some of the other things that people say are the best experiences of their life often have little to do with how much monye they have. The old saying that money can't buy happiness is in fact true in most cases.

Psychological research has shown that wealth is rather like being healthy. If it is absent, it can cause great misery but having it is no guarantee of happiness. We now live in one of the welathiest societies in human history with access to international air travel, microwaves, smart phones, the internet and all other types of technology which are supposed to ultimately make us happier. However, the research indicates that Americans are not on average any happier than they were 40 years ago.

In terms of trying to control your credit card debt, if you begin by recognising that your spending on your credit card will not necessarily bring you additional happiness, this is a good start to gaining some perspective on the purchases that you are making with your card and can help you refine your financial goals so that you don't spend money unwisely in a way that doesn't take you towards your ultimate financial goals.

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