ALABAMA A&M and AUBURN UNIVERSITIES

AUBURN, JUNE 11---Setting goals is one of the most talked about and least understood aspects of money management today.

Dr. Fred Waddell, an Extension family resource management specialist and family financial counselor, says people are often not ready to set goals in the early stages of learning about financial management or when starting financial counseling.
"When they do set goals, their goals are usually too big," he says.

Waddell finds it essential to think first in terms of setting a short, one-month or immediate goal.  Research shows the first three weeks is crucial in bringing about behavioral change.  If a person hasn't taken active steps to resolve a problem or pursue a goal within the first three weeks, it's unlikely he or she ever will.  Begin goal-setting by thinking in terms of a mini-goal or immediate goal. Waddell says.

Another reality of goal setting is that we change our goals, sometimes considerably, between the beginning and completion of money management counseling or educational experiences.  In the beginning, people are unsure what an appropriate or well-chosen goal should be. However, after completing several weeks or months of counseling or training, people are better able to identify goals because they have improved their money management skills.

Waddell emphasizes that it's not necessarily as important to achieve your goals as it is to pursue them. "The mere pursuit of goals leads to positive behavioral changes, problem resolution and generative growth, regardless of whether or not the goal was actually achieved," he says.

Waddell also encourages consumers to form focus or study groups during the first 30-day period, preferably within two weeks to three weeks.  These sessions will help you know that others are having the same problems and feelings and also are facing some of the same obstacles.

When setting and working toward financial goals, keep your focus on making small, measurable behavior changes, says Waddell.  Goal setting and reaching are a step-by-step, trial and error, learning-from-each-effort process. Putting little steps together is how you learned to walk. The same is true for setting and reaching goals.

Planning and working together to reach your financial goals increase family well being and self-confidence.

SOURCE:  DR. FRED WADDELL, Extension family resource management specialist, Alabama Cooperative Extension System, (334) 844-3244.