You have your lists of goals that you’d like to achieve and last time we broke down career aspirations and looked at steps you might need to accomplish them. Now let’s take a closer look at your Financial Goals.

Financial Goals

Financial goals are difficult! I’m sure we would all like to have a few million dollars by the time we are 25. The most important part of any plans is making the goals realistic. If you are 24 and working at McDonald’s, being a millionaire at 25 is unrealistic unless you happen to have a winning lottery ticket.

Start with your 1-month goals. Those are usually simple and consist of paying up your monthly bills. See if you are earning enough to cover those bills. If not make changes. Spend less or earn more.

Then add in your 1-year goals. Maybe you have a small debt to pay off or want to take a vacation in the coming year. Plan it out. Take the total amount you will need and divide it out over your pays. Force yourself to save the money so you can achieve that goal.

Your 3-year goals could include things like paying off a larger debt or saving for a new car. Again plan it out.

A 5-year plan could include putting a down payment on your own home or starting an investment fund.

By the time you are writing your 10-year plan it should include bigger goals. Things like having paid off 50% of your mortgage, having 50K in investments or having 20K in your children’s education fund.

Remember you have to adapt the plan to your unique situation. You may have no debt or no interest in a car and can start saving for a house in year 1. Your 10-year plan could be to have a net worth of $10M. Whatever the case, just make sure your plan is realistic. What’s the point of having a plan that you have no hope of accomplishing.

You’ve made your lists and we’ve broken done Career Goals and Financial Goals. Next up is taking a closer look at Personal Goals.

[Photo Source: Noah Wesley]