Financial Goals

You will need to make a list of goals of what you would like to achieve with your financial planning.

The best is to write down the financial goals in a list of priorities that are the most important to you, and what is absolutely necessary. This can be goals like paying for education, medical expenses, paying of expensive credit card debts and so on. These are all important things that will back fire on you if you let them lapse.

Secondary goals would be paying of mortgages and car loans and other debt that is less expensive then consumer debts.

Then you should make a list of your personal goals, everything that you are dreaming of and wish for. Like having longer holidays, buying a new car, playing golf or whatever. The personal motivation for short term goals are often many times stronger then saving for retirement many years ahead. Saving for retirement is what most people are talking about, but in my personal opinion this should be a secondary side goal that comes along with your primary goals.

What would be the easiest to motivate yourself for: A new flat screen TV next year, or retiring in 20 years?

*This does not mean that you give up paying off your debt, and just buy the TV on your credit card.

*It means that when you have paid off your current credit card debt and saved enough money to buy the new TV, you go buy it if you still want it.

*Maybe you by then have changed your mind and want to save a bit more for something more expensive and more useful.

*Maybe by then you have discovered another opportunity to actually make money on the money you have saved, instead of buying the TV.

*Maybe by then you have discovered how easy it actually is to save money and reduce your debt.

No matter how you look at it, you have to set goals that inspire your motivation. The first priority is clear; you have to cover all the things that you have to have.

For the rest the goal setting process is about making smart choices.

Action Steps

1 Taking financial inventory

2 Deciding what are your financial goals

3 Making a detailed financial plan of how to get there

4 Putting the financial plan into action and monitoring it

5 Become a member of the Financial IQ Club!

Read also:

How to acieve personal financial freedom

Ways of saving money

Practical budgeting tips

Here are some free tools:

Debt free calculator

When will you be a millionaire calculator

Money 101 Course