A few days late, but here’s the post about Financial Goal Setting.
Finding Your Goals
Financial Goal Setting is like setting any goal except it relates to your money. First thing you do is picture yourself 5 years down the road:
- Where are you?
- What are you doing there?
- Do you have anything (dog, new car, house, etc.)?
- How did you get there?
Answer these questions for 10, 20, 40, etc years down the road and be specific. The more specific, the more you’ll understand what your future could look like. For example: In 5 years, I see myself in a decent sized town working as a financial advisor. My dog loves to run around in my front lawn (aka I own a house) next to my motorcycle. I got there by working my 40 hours each week to feed Rex, pay for the mortgage, and motorcycle insurance. The 350cc Triumph I purchased was from some money I saved in my last few years in college.
Now it’s you turn!
Define Your Goals
The next step is to take what you visualize and write it down with the goal’s potential cost. Again, the more specific, the better! I highly suggest googling costs if you don’t know.
- Purchase home in 5 years around $80,000 with a down payment close to $17,000
- Rescue Rex ($350 for vaccinations/neutering/etc.) after a few year of working and pay $105/month for food/medical attention.
- Purchase Triumph around $1,500 with insurance around $30/month
Next, you are ready to plan out how much to save/invest based on the goals you have.
… Stay Tuned.