Identify Your Financial Goals

Where do you want to go? Have your goals changed in the past year or two? Whether you’re sending kids to school, moving to a new neighborhood, planning a dream vacation or looking forward to a relaxing retirement, don’t let concerns about your finances stand in your way. Set realistic financial goals so you can start turning dreams into reality.

Keep Pace with Life Changes

Even if you already have a financial plan, keep in mind that every life stage may bring new and evolving goals. So, if any of these life events are on your horizon, it may be time for a financial tune up.

• Graduating from school; getting a new degree
• Getting married
• Adding children to your family
• Retiring
• Changing jobs
• Relocating
• Leaving or reentering the workforce
• Supporting adult children or aging parents
• Starting a business

Write Down Your Goals

As you set goals, be sure to write them down. Studies consistently show that putting goals on paper makes you more likely to achieve them. Consider setting separate goals for the short, medium and long term, then break bigger, longer term goals into small, measurable steps so you’ll always know if you are on the right track. Use these examples of common short, medium or long-term financial goals to help inspire your own planning:

• Short term goals (a year or less): Planning ahead for holiday spending, setting aside money for a family vacation and paying off credit cards balances each month are all things that can help you set up, and keep, a realistic budget.
• Medium term goals (1-3 years): Make it a priority to pay off bad debt, from smallest to largest bills. The faster you chip away at debt, the less you’ll pay in interest. Also, make every effort to begin building an emergency fund of three to six months of easily accessible to cash to pay your living expenses. Emergency funds help you deal with unplanned expenses and prepare for the future.
• Long term goals (5 years or more): Long-term goals usually coincide with life’s biggest expenses such as sending children to college, paying for a dream wedding, or retiring with the means to do what you want.

Monitor Your Progress

Your monthly account statement is a good reminder that it’s time to review your progress toward financial goals. In addition to balancing your checking account and reviewing credit card charges, take an extra minute to read through your short, medium and long-term goals. Look back on the previous month to see what you could have done differently then plan ahead to make achieving your goals a top priority. At a minimum, review your goals twice a year to make sure they still match your circumstances.

Personal Financial Planner

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