One thing that everyone can agree on is the value of financial security. In an uncertain economy, it is important to do all that you can to help solidify your financial future. This begins with goal-setting strategies towards that end.
Why Set Goals?
Just like with any other area of your life, goals give you a focus for your efforts. Without them, it is hard to plan for anything. In financial situations, lack of goals can lead to short-sightedness and inadequate funds for important things like college, retirement and vacations.
Now you know why we need to set goals, what are the goals you have in your life? Think just today’s or next month’s but in the long term; what do you want your money to do for you?
Financial Goal Setting
* Write it down – With the details just in your mind, they can be forgotten or ignored. Use a pencil so that you can change and modify them as needed. List them in no particular order but just get them down so you can move on to the next step.
* Make your goals specific – If you wrote something like “I want to buy a new car,” it is too vague. Create a strategy and set a timeline to be more specific. “I would like to save $3,000 towards a new car by December.” Now, we have a timeline and a specific money goal.
* Break down your goals – The above goal can even be broken into a smaller more manageable goals. If you are having trouble making ends meet today, saving $3,000 might as well be like saving a million. But, if you set short, medium and long-term goals to reach this ultimate financial goal, it is not so overwhelming and more manageable. So, here goes: “I want to save $500 every two months. I also want to meet a goal of $1,500 by mid-year. At the end of the year, I estimate that I will have saved $3,000 towards my new sportscar.” As an example.
* Read and research – Now that you have financial goals, find out more… Talking to a financial advisor can help you learn the right way to implement your goals with maximum gains and minimum effort. Financial advisors like Thom & Associates offer free consultations. Money magazines are also a good source of information.
* Evaluate and re-evaluate your goals – Every few months review your goals. Have they changed? Are you still on track to meet them by your deadlines? If not, what can you do going forward to meet them? You can readjust the timeline, add more cash, or change your expectations to account for changes in the economy and your life.
Work smarter not harder to achieve your financial dreams. With a little strategy you can enjoy a life full of endless possibilities. Thom & Associates can help, give us a call at 250-861-RRSP (7777).