Goal setting is tough enough without adding the word finance into the mix. Many of us are often hesitant to tackle the job of setting financial goals, especially when it comes to the long-term goals that set us up for our financial future. It’s not fun, it’s not sexy…heck! It’s actually pretty boring, right?! Even though setting financial goals is something a lot of us already do (sometimes without even thinking about it), like when we plan to save up for that vacation or for the down payment on that new car, but it’s only a part of what we need to do. In setting financial goals, we’ll have to learn how to efficiently control our day-to day financial affairs, otherwise commonly known as creating a budget. The financial planning process starts from understanding and examining our current situation, gathering relevant financial information, setting up financial goals and finalizing a plan in detail. Contrary to what most people think, doing this will allow us do the things that give us pleasure and satisfaction while also having a positive effect on achieving a comfortable lifestyle later in life.
Do This to Set Yourself Up for Financial Success
If you have your sights set on reaching financial well-being, setting financial goals will be the way to get you there. For setting financial goals, selecting a simple course of action that you could follow will guide you to financial success. First, you need to identify and write down your goals which will help you to visualize your dreams and desires.
This may include saving to send kids to college, buying a brand-new car, a down payment on a home, going on vacation, paying off high interest credit card debt or planning for your retirement and how you want that retirement to look. Then, you need to take some time to break down your monetary goals into several smaller manageable time driven measures.
“Setting goals is the first step in turning the invisible into the visible.” – Tony Robbins
These include short-term, medium-term and long-term goals. Doing this will create your goal setting process and as you set those targets, you need to make sure they’re quantifiable and achievable. Another important part of the process is researching to educate yourself about investing and the various investment vehicles and strategies by, reading books, magazines, investment sites, etc. to which determine which approach would be best suited for your goals and risk tolerance.
Last, but certainly not least, you need to review your progress occasionally so as to notice where you need to make alterations and to chart your financial growth. You’ll want to periodically check your progress monthly, quarterly, or in any interval you feel comfortable with, but at least annually, to be able to confirm that your program is working and your goals are on track.
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