There are just a few basic places to start when you begin setting financial goals. These are the fundamental steps that are essential to identifying what you want to achieve and developing your plan to get there. Taking into consideration these very basic starting points will give you the tools you need to get on your way to achieving your financial goals.
You really need a budget before you can begin any type of financial goal planning because you need to have a clear vision of what exactly you have to work with. When you have your budget clearly drawn out, you will see how much money you have left over at the end of the month to apply working towards your goals. You will also see how much you are paying out to preexisting expenses, and where you might be able to cut down or eliminate expenses all together.
Identify the things that you need. These items can be everything from rent or a mortgage payment and groceries to monthly credit card payments or large debts that you need to get rid of. These items are necessary and must be taken care of every month.
Identify your wants, as they may be dreams and goals that you want to achieve badly, but are not immediate in necessity. Let yourself go wild a little and add things to this list that may take a few decades to achieve, but when planned for and started early, are within reach.
With an understanding of what you want and need and how much money you have to work with, you now need to examine each element and dissect it, looking at balances, interest rates and possible timetables and determine which items you need to incorporate into your monthly budget first to work best and most efficiently towards your goals. Draw out a list of everything you need to take care of or want to achieve and assign numerical ranks to each item from first to last in the order you wish to tackle them.
You have your priorities and you are almost ready to get going; now all you need is a specific plan of attack. Are you going to work on one long term goal and one short term goal at the same time checking off multiple short term goals as you go? Are you going to cut any expenses or eliminate them completely for a period of time in order to free up funds? You need to get specific and be realistic with all of your information and develop a plan that is going to work and in a way that does not set the trap of discouragement.
Get to it! Be persistent. You have done all of the hard part, figuring out the logistics of everything, now you just have to execute your plan. Work on it every day and remind yourself on a consistent basis what it is you are working towards and why. It is all up to you, don’t lose sight of what you want and keep going every day, no matter what, and you will get what you want.