DETERMINING YOUR FINANCIAL GOALS

Goals are basically dreams and wishes that could come true, if you want them to. Goals give you direction, a purpose for the way you spend your money and guideposts for the way you live. They are what keep you motivated.

If you don’t set goals, you’ll probably end up wishing you had. Without focus, you can be easily sidetracked, losing sight of your dreams and the spirit to make them a reality. The idea of goal setting is to maintain focus. Remember to reconsider them every once in a while because they may change over time.

WRITE YOUR FINANCIAL GOALS DOWN. The best way to start setting goals is to put them in writing, be as specific as possible and realistic. Take the time to do some research, and ask yourself as many questions as possible to help you figure out what you want. By asking yourself all these questions, you will be able to create a more realistic goal and you will be able to achieve the goal faster.

1. What do I want or need?

For example if you’re goal is to buy a car- ask yourself questions such as:

• Do I want a brand new or used car?
• How much do I want to spend?
• What make? What year? What colour?
• Do I want power windows?
• Do I want an MP 3 player?

2. Is this goal a short, intermediate or long term? Use the Financial planning worksheet to help you write down your plans.

3. What do I need to do to start saving for this goal? Example: where do I cut back on my budget to be able to afford this goal? Visit Spend Less Calculator.

4. When do I want to start and why? (Don’t procrastinate)

Back to Planning