Ready to start setting some financial goals? Here’s what you need to do.
Establish Where You Are Now
Before you decide where you want to go in the future, it can be helpful to assess your current financial situation. This might include savings, debts, investments, and cash flow forecasting. Taking stock will help you identify what’s attainable, and decide on realistic timeframes for each target.
Consider Personal Values and Ambitions
Financial life planning is exactly what it sounds like: financial planning for your life – not anyone else’s. That means you need to have a long hard think about what matters most to you, considering everything from core values to personal aspirations to family.
Make them SMART
Most people use the SMART framework when setting financial goals. This refers to setting goals that are SPECIFIC, MEASURABLE, ATTAINABLE, RELEVANT, and TIME-RESTRICTED. Taking this approach means setting financial goals that are much more likely to come to fruition.
Write Them Down
Once you’ve established the financial targets that will bring about your vision for the future, it’s time to write them down. This will make your goals feel more concrete, and will help keep you on track. With a written document detailing your plans, you’ll be better able to hold yourself accountable.