What is goal setting, and why is it important?

Have you ever set a goal – such as spending less money or exercising regularly – only to give up on it a few days later? You’re not alone. The main reason many of us fail to reach our goals is because we don’t go about setting them in the right way.

At nib, we consider ourselves your health partner, talking to the experts to get the guidance, tips and tricks to help you live your healthiest life.

To shed some light on why goal setting is important and how to set goals effectively, we spoke to habit-change scientist, Dr Gina Cleo.

“When done correctly, goal setting is an effective and often vital element of success,” says Gina. “Setting goals paves a clear path and focuses our attention towards a specific task.”

Setting goals is simple, but sticking to them? That’s the tricky part. Why is it so hard to turn our intentions into lasting habits? While there’s no single answer, research in neuroscience and psychology offers some helpful clues.

• The "way" is all about knowing how to reach your goal. This includes understanding the steps, having the skills to carry them out, and staying focused.

• The "will" is your motivation—the why behind your goal. It’s about genuinely wanting to achieve it and prioritizing it over other things.

• Some habits, like brushing your teeth, are so routine they don’t take much effort or thought – they just happen automatically.

• Other tasks, like learning a new skill or sticking to a fitness plan, need both motivation and effort because they’re more complex and unfamiliar.

Here’s the key takeaway: the goals we care most about often sit in that sweet spot where skill and motivation meet. So, when you set your goals, think about both the steps (the way) and your motivation (the will). When those two align, you’re much more likely to succeed.

Gina outlines three principles of goal setting that will lead to success:

• Believing in yourself (self-efficacy): This is all about having confidence in your ability to reach your goal. It’s one of the biggest factors in whether you’ll succeed. When you trust yourself, it’s easier to keep going, even when things get tough.

• Finding your ‘why’ (intrinsic motivation): Goals that come from a place of genuine interest – like wanting to feel healthier, learn something new, or grow as a person – are much more likely to stick. On the other hand, goals driven by outside pressures, like rewards or approval from others, don’t tend to lead to lasting change.

• Balancing challenge and achievability: Your goal should push you just enough to feel exciting but not so much that it feels impossible. Striking that balance makes progress feel rewarding and keeps you motivated to keep going.

There are several methods to set goals. Gina suggests a practical, evidence-based approach.

Step 1: Decide on a goal

She recommends setting small, achievable goals rather than big goals that are harder to achieve and leave us feeling overwhelmed. Rather than setting a goal to overhaul your entire lifestyle, try to set specific ones such as exercising three times a week or bringing a healthy lunch to work, for example.

Step 2: Make it specific

The more specific your goal is, the better your chance of achieving it. “Think about the frequency, duration, intensity and other details relating to your goal,” advises Gina. If you want to save money to buy a car, for example, decide when you want to buy it and figure out how much you need to set aside each week until then. Come up with a specific plan to save that weekly amount, such as giving up your daily takeaway coffee or cancelling a streaming service you don’t need.

“Using the SMART goal theory is a tried and tested way to give you the best chance of success. If you’re unsure if your goal is Specific, Measurable, Achievable, Relevant and Time-bound, try sharing it with someone you trust for feedback – sometimes it helps to talk with someone about it.”

Step 3: Write it down

Writing down your goal isn’t just about having it on paper, it’s about creating a clear vision and holding yourself accountable. When you write down what you want to achieve and how you plan to get there, it becomes real. You’re more likely to stay focused and track your progress along the way.

As Gina puts it, “Having accountability and tracking your progress are key to achieving your goal.”

Life can get busy, and distractions are bound to pop up. But staying committed to your goal is what will keep you moving forward. To help you stay on track, try creating a dedicated space where you can focus, setting specific time blocks for working on your goal, or using productivity tools to keep you organised. These little habits can make a big difference when it comes to pushing through challenges.

Step 4: Take action!

Now that you’ve done all the goal-setting prep work, it’s time to get started. If you have a setback, try to see it as temporary rather than telling yourself you’re a failure and giving up.

“Sharing your goals with family and close friends and chatting about your progress with them is another good way to keep you motivated and on track,” adds Gina.

Step 5: Reflect and be kind to yourself

Stay committed to your goal by checking in with yourself regularly. Reflection is a big part of motivation. Celebrating milestones along the way is just as important as reaching the finish line, as it reinforces positive behavior and keeps you motivated.

Mistakes and setbacks are natural parts of the journey – embrace them as learning opportunities. Try adopting a mindset that says, “I’ve made an error? That’s ok, it’s a chance to learn and grow.”

Remember, obstacles will come, but focusing on your progress will help you stay on track.

Ready to take charge of your health and wellbeing? We offer a range of tools, services and programs to help you reach your goals. Start with a free online health check for personalised insights, explore programs from nib foundation partners to support your healthiest lifestyle, and enjoy rewards and offers that make it easier to get started. Check out how your membership can bring you closer to your health and wellbeing goals today!

Please note: The tips throughout this article serve as broad information and should not replace any advice you have been given by your medical practitioner.