We all have big dreams and goals for various parts of our lives, from business to wealth-building to We all have big dreams and goals for various parts of our lives, from business to wealth-building to relationships and personal growth. We want to improve our lives in some way. We dream big, and we set goals. But what’s the main difference between a dream and a goal? How can you turn your bigger dreams into reality and achieve goal-setting success—whether in your career, your finances, or your personal life?
While the terms “dreams” and “goals” are often used synonymously, there’s actually a big difference between the two. In this post, we’ll dive into those differences and the one strategy that will help you turn your dreams into achievable goals. Just think how different your life could be a year from now—what wealth, opportunities, or personal milestones could be in place—if you start taking action today!
Key Differences Between Dreams vs Goals
Dreams live in your head and use your imagination. Dreams are wishes and hopes. They are aspirational.
Goals are more focused; there’s a strategy and plan. They are something that you are actively trying to achieve. Goals are the pathway that directs your actions to make your dreams a reality.
What are Dreams?
Dreams live in your imagination. You may experience them through thoughts, images, or emotions. You might talk about them, write about them, envision them happening—but you don’t have an action plan. You aren’t taking tangible steps to bring them to fruition.
Dreams are aspirational. They can motivate you, excite you, spark new possibilities for your future. Dreams are often where your goals originate from.
For example, plenty of people dream of starting a business, building wealth, or buying their dream home. But unless those dreams are turned into small goals with actionable steps, they’ll stay in the “someday” category.
What are Goals?
Goals are more focused, with a specific outcome. They are tangible. They include a strategy and an action plan. Goals are something you intend to achieve—whether they’re short-term goals like saving $50 this week or large goals like building a fiancial portfolio that allows you to live with financial freedom
Goals are specific, measurable, and attainable. They direct your daily actions to make your dreams your reality.
Dreams vs Goals:11 Significant Differences
1. Goals Require Taking Action
Dreams are the vision.
But without action, they’ll always just be ideas. Goals have actionable steps that move you closer to your desired outcome.
2. Goals Have a Timeline
Goals live on a calendar. You can have short-term goals and long-term goals, but both need a time frame. Dreams often live as “someday” ideas.
3. Dreams are Creative and Infinite
Dreams don’t need to be realistic or achievable like goals. Dreams have endless possibilities; nothing is off-limits in the dream world. They let you imagine different things without boundaries.
Dreams let you to get lost in the wonder and release the responsibilities and realities of your life.
4. Dreams Reveal Innermost Desires
Dreams can tell you a lot about what you really want in life…and what you don’t want. If you often dream about having a new home, fiancial freedom or running your own business, you would want to explore how you might begin to turn that into a goal and make it happen!
5. Dreams Inspire Goals
Dreams often inspire goals because there is a desire to turn your vision into your reality. Dreams have limitless possibilities, but we can take the idea of “anything is possible” to notice what’s really in your heart.. Is it really a new car you desire- or do you really desire a life with more ease and financial freedom?
6. Goals are Realisitic
Goals have to be realistic and possible to achieve. Yes, you want to set big goals, even ones that feel nearly impossible at first. But when you break them down into actionable steps, you’ll often realize they are achievable.
For example, if you’re ready to expand your business income to multiple six figures or even seven figures, it might not feel realistic at first- but with the right support and strategy, it’s absolutely possible. On the flip side, trying to “manifest” multiple six or seven figures while binging Netflix is, well… pretty unrealistic.
7. Goals Push You Out of Your Comfort Zone
Goals are meant to stretch you and move you beyond what feels comfortable. When it comes to wealth, this might look like raising your rates, investing in support for your business, or shifting long-held spending habits. It could mean having uncomfortable money conversations with a partner, boss, or client, or finally giving yourself permission to receive more.
Financial goals often push you to expand what you believe is possible for yourself—whether that’s saving more, taking calculated risks, or stepping into a new wealth identity. While uncomfortable at first, these are the very steps that help you grow into the version of yourself who can hold and sustain the next level of abundance.
8. Goals are Measurable
Goals have a way of being measured. They use criteria, standards, or timelines to gauge whether they’ve been achieved. Tracking data or monitoring your progress helps you see how far you’ve come and where you need to adjust.
For example, if you’re working toward growing your business income, you might measure revenue growth month by month, the number of new clients you’ve signed, or how much you’ve been able to save or invest. Just like a marathon runner tracks distance and pace, financial goals require clear markers—income targets, sales numbers, or savings milestones—to show you’re on track. Without some kind of gauge, it’s impossible to know if your wealth-building goals are being met.
9. Goals Produce Results
One significant difference between goals and dreams is that dreams can stay in your head for entire lives, while goals produce results and move you forward.
You can dream all you want, but if you stay on the couch watching Netflix all day, your dreams won’t come true. Goals are goals because they require you to take action to get results. Taking action gives you a different result than you started with.
10. Goals Move You Forward
Goals move you forward by requiring you to take action. Actions help you move forward toward the desired outcome you want. Dreams don’t require action, which is why they often stay as dreams in your head.
The thing to remember about goals is they always move you forward, even if it’s one small step at a time. Even if you don’t reach your goal in the timeframe you want to, or you flat out fail in achieving your goal; you’ve still moved forward in life. You are still one step closer to getting what you want in life. Failure is still a way of moving forward in life. Success is born out of failure and getting back up. It’s doing nothing that keeps people stuck- dreams don’t require you to take any action.
11. Goals Open the Door for New Opportunities
Goals push you out of your comfort zone and require action. New opportunities in life often come when you take action or put yourself in new and different situations.
Great things often come as a result of achieving a goal that you didn’t necessarily anticipate or expect. Action leads to unexpected opportunities- it could be new friends, networking opportunities or collaborations you could’ve never anticipated.
How to Turn Your Dreams into Achievable Goals using SMART Goals
Successful people know that turning dreams into reality requires consistent action. That’s where SMART goals come in. SMART stands for:
SMART Goals are:
- Specific
- Measurable
- Achievable/Actionable
- Relevant/ Realistic
- Time-Based
1. Be Specific in Your Goals
The first step in designing your goals is to be as specific with your goal as you can. Start by looking at one area of life and then one aspect in that area you would like to change. For example, if you want to improve your finances- what part do you want to improve specifically? Saving more money or earning more money? If you choose to make more money, how do you plan to make more money? The more specific you get, the more clear you become on what you want and how you can create the right path to get there.
Example: I will earn $1000 more each month in commissions by adding one new account to my workload.
2. How will you measure Your Goal?
The next step is to decide on how you will measure your goal. There are many different ways you can measure your goal. It could be an increase or decrease in measurements such as money, time, or distance. If your goal is more subjective or difficult to measure, try a rating system such as a scale of 0-10.
Another reason to have a system to measure your goals is so you can track your progress. Achieving goals is very much about the journey and the daily habits that help you get to that desired end result.
No one runs a marathon in a day or starts a business overnight. Tracking progress also keeps you motivated and focused, particularly for goals that take weeks, months, or years to achieve. You can track your progress using pen & paper or by using a phone app- there are phone apps designed to help people track all kinds of goals.
3. Is Your Goal Achievable?
One of the keys to reaching a goal is to make it an attainable goal. While ambitious goals are always great to have, they also need to be achievable. You want to set goals you know you can make happen. You want to challenge yourself and set yourself up for success at the same time. You want to ask yourself- “Do you have the capabilities to achieve your goal?” and “How will you achieve your goal?”
4. Your Goals and Actions Should be Relevant
You want to create goals relevant to your overarching goals in life. The life you desire for yourself and those you care about is the driving force to helping you achieve them.
A relevant goal is about getting to the “why,” what does that goal mean to you, and why is it important to achieve it? Your goals should always be relevant to your overall life goals.
5. Goals Are Time-Based
Goals need to be anchored in a time limit with clear deadlines of when they will be accomplished. You can structure your goals to have a daily, weekly, monthly, or longer-term end date. Long-term goals should have short-term milestones that can support you along the way so you can monitor your progress and stay on target. This will be unique to your goal, what actions you select to achieve your goal, and what you feel you can realistically commit to.
Key Takeaways
Dreams live in your imagination. Goals bring those dreams into reality through action, timelines, and measurable progress. The main difference is that goals require you to get up, take small steps, and move forward—even if it’s just one step at a time.
Whether you’re aiming for financial freedom, stronger relationships, or personal growth, today is the best day to start. Remember, small goals build momentum toward large goals—and the sooner you begin, the more different your life could look next year.
Karla is a certified somatic practitioner who helps women heal their nervous system and transform their relationship with money and wealth.
