Setting High Goals or Realistic Goals

Do you set your goals according to what you to want to achieve or according to what you think you are capable of achieving?  The two are often indistinguishable for some people, limiting themselves to what they think they can accomplish.  I, unfortunately, am one of the people who limit themselves according to what has happened in the past.  Most of the superiors don't believe this to be an effective way of setting goals.  I'm not entirely sure if I agree with them on that matter.

  Setting what I believe to be a realistic goal is a way of saving myself and those around me the disappointment of my failure.  This method may be seen as not putting forth the effort, which varies in some cases.  Every now and then I hear someone mention how they didn't reach their desired goal but show almost complete indifference.  From what I can tell these people set goals to keep themselves in the right set of mind.  If a goal is completed that's great, if not they'll try harder next time and keep on trying till they're able to set a higher goal.