Setting Your Financial Goals
September 12, 2013
By: Sara Cooper, America Saves Project Director
When you joined our growing community of Savers by pledging to save, you chose a goal to work toward, like building an emergency fund. The demands of life usually mean working toward several goals. To make that manageable, think about your goals on a timeline: short-term, mid-term, and long-term. This will help you set priorities. Here are examples:
Short-term goals: developing a budget, reducing credit card use
Mid-term goals: saving for a major purchase or college education
Long-term goals: saving for retirement, estate planning
Women’s Money, a program of the International Association of Working Mothers, recommends these steps to setting and achieving financial goals:
- Identify the goal and write it down.
- Put a price tag on the goal. How much money will be needed to achieve the goal?
- Set a target date for achieving the goal.
- Set priorities among your financial goals. It may not be possible to achieve all of them simultaneously.
- Develop a plan to achieve your goals. This will mean re-examining how you presently spend your money and working the financial goals into your monthly budget/spending plan.
- Begin to work toward the goal immediately. Procrastination costs money in the long run.
- Keep records to monitor your progress and success toward accomplishing your goals.
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