FINANCIAL GOALS (PART 1)
HOW TO ACHIVE FINANCIAL GOALS
Financial goals can be achieved by making plans that prioritizes your goals. You will also need to make an estimate of how much is needed and how long it will take. You will therefore need to categorize the goals into the following
1. Short-term goals: these take a maximum of 1 year to achieve these goals include buying a new shoe, paying off a specific debt etc.
2. Medium term goals: these goals are not achieved right away and do not take to many years too. Examples include finishing an academic degree, buying a car etc.
3. Long term goals: These goals take a longer time to achieve. Typically from 5 years and above. They therefore require more money and longer commitments to achieve. They include buying or building a house, planning a comfortable retirement, saving for your child’s education.
DEVELOPING A FINANCIAL GOAL CHART
After categorizing the goals into short, medium and long term, a goal chart is required to enhance the goal setting process.
1. Put down one specific financial goal. This goal should meet the SMART metrics and have a specific timeline for achievement.
2. Put the goal into one of the categories (short, medium or long term) and create a timeline for the goal. Review it from time to time based on your situation.
3. Make a determination of how much money is needed to reach that goal and begin to save towards it. Do this by separating the amount into weeks, months or years.
4. Analyze all the ways you can achieve this goal including earning additional income, reducing expenses, saving
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