How do you effectively set goals?

I've been thinking lately, maybe the goals I'm setting for myself are too vague and not specific enough.

All successful people set goals, and people who set goals tend to be more successful.

For whatever reason, when you feed your mind a specific vision and goal things begin to align (or so I've read and been told).

So the question remains, how do you effectively set goals? How specific must they be?

I used to set goals like "Make X amount of dollars by this time, or get x amount of...

How do you effectively set goals?

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