SETTING FINANCIAL GOALS

“Setting Financial Goals” sounds fairly easy doesn’t it?

Then why do so many of us struggle to achieve it? Let me think………..Oh yes, I know why…….. The refrigerator broke, little Jimmy broke his nose and needed medical attention, they cut back my hours at work.

So, with all that happening how can we even think about “Setting Financial Goals” when it takes all of our time and energy just to survive in everyday America.

Why do I need to set goals?
What are goals?
How do you achieve goals?
Which family will succeed?
My goals worksheet?

1. Why do I need to set goals?

“Getting what you want doesn’t always come easily, chances are you’ll have to work to get what you want”

EVEN if you win big on a game show!!

How often do we read that some one who won the lottery is back to being broke – how could they spend all that money? “It wouldn’t happen to me” – or would it?

If you can’t manage $100 responsibly, then how could you manage $1,000,000.00? The same principles apply; it’s just more of it.

2. What are goals?

Goals are something for which you work, which you achieve by planning, and by following the plan.

There are three typical types of goals - short, middle and long, but what do they mean?

Well, they mean different things to different people depending on where you stand financially. So, there really is no “perfect” answer.

Short-term goals

Short-term goals are goals that you can achieve within one to twelve months.

Goals may include:

Buying a new television or refrigerator
Family vacation
Birthday and holiday gifts
Paying off a credit card

Middle-term goals

Middle-term goals are goals that you can achieve within one to five years.

Goals may include:
Purchasing a new car
Getting a new kitchen
Paying off a credit card
Dental work

Long-term goals

Long-term goals are generally anything that is over five years to achieve.

Goals may include:

Buying a new house
Saving for a child’s college education
Saving for retirement

OK, lets do a little quiz, read the list of goals below and based your current circumstances mark if they are short, middle or long:

The Goal	Short	Middle	Long
Replacing a TV set?
Purchasing a vehicle?
Paying for a child’s college education?
Planning for your retirement?
Buying a home?
Replacing a refrigerator?

3. How do you achieve goals?

Financial goals take planning, they don’t just happen.

In order to achieve anything in life you have to stay focused and use positive reinforcement, just like trying to lose weight – stay positive and focused.

Develop your goals hand-in-hand with your budget and spending plan, and figure out ways that you can apply more of your money towards achieving them
Write down your goals, place reminders around the house where you will see them everyday, this helps to keep you focused
Get people in your life to support you and feed off their inspiration
Set realistic goals, some that you will achieve within a few months, this helps to keep your morale high
Review your goals every few months, if your financial situation has changed it’s Ok to change them

4. Which family do you think will succeed?

Look at the 2 families below, and based on their financial goals, who do you think will succeed?

The Smith Family	The Jones Family
…HOPE to get out of debt	…WILL be out of debt by January of next year based on a monthly payment of $500
…WANT to purchase a home	…WILL buy a home by March with $10,000 saved for a down payment
…WISH to eventually send their child to college	…WILL have $14,000 saved for tuition by the time their child is 18 years old

The Jones family are the ones who will succeed.

Why the Jones family?

The Smith family has their hopes, wants and wishes but they have not set any specific goals. Whereby the Jones family has set achievable goals and WILL succeed.

5. My Goals Worksheet

Short-term goals – less than 1 year to achieve

My goal is: -	Total cost $	Number of months to achieve	How much $ I need to save each month	Comments/progress
1.
2.
3.

Middle-term goals – Between 1 to 5 years to achieve

My goal is: -	Total cost $	Number of months to achieve	How much $ I need to save each month	Comments/progress
1.
2.
3.

Long-term goals – Over 5 years to achieve

My goal is: -	Total cost $	Number of months to achieve	How much $ I need to save each month	Comments/progress
1.
2.
3.