To develop a financial goal you need to first examine your
current economic situation. Then look at your short term and long term
objectives and choose the one you most want to accomplish. Set your goal based
on this priority and begin saving for your future by creating a budget that
reflects your needs and desires as well as your financial goal.
Check your current finances before you begin your financial
planning.
- Obtain all recurring bills for the past 6 months.
- Record all income for the past 6 months.
- List nonrecurring expenditures and periodic expenditures, such as medical procedures or oil changes, in a separate area.
- Identify those expenses that are necessities and those that are luxuries.
Find ways to reduce the amount of money you spend on
necessities in order to devote more money to your financial goal.
- Research new companies for items that have a high level of competition such as credit cards, gas stations, telephone and cell phone plans, or Internet services.
- Reduce entertainment luxuries by cutting back on cable or satellite subscriptions and by stopping to attend expensive shows. Instead sign up for a free or inexpensive online movie and television streaming service which can deliver entertainment to your television or computer.
- Reduce the amount of money you spend on fueling your car and stop going to places that are not necessary.
Decide what you want, and will need, in the future.
- Setting financial goals must begin with deciding on what you need or desired for.
- Choose one goal at a time in order to make the goal setting process less intimidating.
- Goals that would benefit from the assistance of a financial goal include purchasing a car or home, attending college, moving, getting married, purchasing furniture, having a baby, home renovation, or a vacation.
Choose financial goals that will help you achieve your
plans.
- You may not need to save enough money to achieve your entire goal outright. Consider saving for a down payment of an item such as a car or house.
- If you need to save a considerable amount of money, create smaller goals at monthly or quarterly intervals.
- Make your financial goals known to your family.
