New Year Resolutions
Written by: Paul J. Calleri, CMA of Paul J. Calleri, Consulting. Principal of “TheGAAP.net” – Principal and Editor of “The Business Zeitgeist” and the “IFRS Zeitgeist” newsletters

Happy New Year!

Now that the festivities are over; it’s time to get down to business.

If you haven’t already done so, set your New Year’s resolution now.

2010 is still a new year, and could be the best year for you.

What is your goal? Is it a career/business, personal goal, or more?

We all know you have to plan to succeed but how many of us do it for ourselves? Sure; we do it for our clients or employers, but do we do it for ourselves? No; not usually.

Let this year’s resolution be not only to set a goal but to:

  • actually implement it

  • measure and monitor it

  • and achieve it as envisioned

Now, how do we accomplish all of this; first of all define the goal you want to achieve. When you define it well, you have a better chance of achieving the goal you had envisioned.

For instance, is your goal to be more prosperous and have more savings set aside in 2010? If it is and you don’t define your goal well; you could only have an extra $50.00 at the end of the year. Are you more prosperous; yes, is this what you had set out to accomplish; probably not.     

There is a method to help you achieve your goals called the SMART goal method. It will ensure you achieve your goal as intended.

The SMART goal method components are as follows:

S-Specific

M-Measurable

A-Attainable

R-Realistic

T-Time Bound

For example, if your goal is to save $10,000 in 2010, your goal could look like the following:                                  

SMART  COMPONENT

SMART  GOAL DESCRIPTION

Specific                         

$10,000

Measurable               

Set aside $192.31 per week($10,000 divided by 52) (note this does not take into account the effect of interest earned)

 

Attainable

This goal is a challenge; however, attainable. In this case, the individual knew the amount could be saved. He had planned to cut their house-hold expenses, renegotiate their loans at a lower rate, sell some unneeded items on EBay, deposit a weekly amount from each cheque, etc.

Realistic

This goal is realistic as an estimate was made beforehand for an amount that could be saved, and there was a firm commitment to the goal.

Time Bound

In this case, a weekly deposit would be made and compared against the weekly plan of $192.31 A weekly review would provide the progress that is being achieved.

As we discussed, planning is great; however, we still have to initiate the plan and implement it soon afterwards.  Measuring and monitoring is crucial.  Use excel, outlook, a planner, or a piece of paper etc. to indicate what has to be done and by when. You may have to tweak your actions from time to time. For example, if you miss your goal for a week or month, you’ll have to make it up. Try visualizing yourself reaching a goal and that will give you a great feeling of accomplishment and will prompt you to continue to work towards that goal. 

Reward yourself for your milestones. A small reward reinforces the positive actions you’ve made and encourages you to do more. And, finally, let people know that you’re taking on a goal, especially a big one like: quitting smoking, starting an exercise program, beginning giving back to your community, etc. 

In fact, let us know what your goal is for 2010. We can place this on “TheGAAP.net” which has thousands of visitors. Let thousands know what your goal is and that should provide the added incentive for you to achieve your goal.

Written by: Paul J. Calleri, CMA of Paul J. Calleri, Consulting, Principal of “TheGAAP.net” – Principal and Editor of “The Business Zeitgeist” and the “IFRS Zeitgeist” newsletters.

Note: Please share your comments and any tips you have on establishing your New Year's Resolutions by emailing pcalleri@thegaap.net