Setting Financial Goals

In order to accomplish things you want in the future, you need to set goals.  Then start working on the tasks to reach those goals.  Perhaps it is to pay off a college loan, go on vacation, or save for college for your children.  Without goals, it is almost as if you are wandering aimlessly.

Setting Financial Goals

When setting financial goals, or any type of goals you want to create short-term, medium-term and long-term goals.  Short-term goals can be achieved in a day, week, month or even one to three years.  Medium-term goals can typically take about three to seven years to achieve, and long-term goals take eight or more years to achieve.

Long-term goals are usually broken down into several short- or medium-term goals that will help keep you move forward towards the main goal. However, short- and long-term goals do not have to always support long-term goals.  For instance, you can have a short-term goal of volunteering five hours this month in a homeless shelter.

Set your goals using the SMART method:

• Specific: Goals are focused, not general.
• Measurable:  Goals define exactly what you intend to accomplish.  You should have a vivid picture of your destination.
• Achievable:  Make sure you goals are achievable by asking yourself, ” Do I feel I can accomplish this?  Is is realistic for me?”
• Results-based:  Goals should be focused on getting to a specific destination and endpoint.
• Timed:  Goals should have deadlines – clear dates when you’ll be able to say “I did it!”