SETTING FINANCIAL GOALS

"Setting Financial Goals" sounds fairly easy doesn't it? Then why do so many of use struggle to achieve it…….. Let me think………..Oh yes, I know why…….. The refrigerator broke, little Jimmy broke his nose and needed medical attention, they cut back my hours at work… so, with all that happening how can we even think about "Setting Financial Goals" when it takes all our time and energy just to survive in everyday America.

In this issue we are going to look at:

• 01. Why do I need to set goals?
  
• 02. What are goals?
  
• 03. How do you achieve goals?
  
• 04. Which family will succeed?
  
• 05. My goals worksheet?
  

1. Why do I need to set goals?

"Getting what you want doesn't always come easily, chances are you'll have to work to get what you want" - even if you win big on a game show.

How often do we read that some one who won the lottery are broke - how could they spend all that money? "It wouldn't happen to me" - or would it?

If you can't manage $100 responsibly, then how could you manage $1000.00? (We apologize for the misspelling in our News Letter) The same principles apply; it's just more $$$$$$

2. What are goals?

Something for which you work and which you achieve by planning and following the plan. There are three typical types of goals - short, middle and long, but what do they mean? Well, they mean different things to different people depending on where you stand financially. So, there really is no "perfect" answer:

Short-term goals - Short-term goals are goals that you can achieve within one to twelve months. Goals may include:


• Buying a new television or refrigerator
• Family vacation
• Birthday and holiday gifts
• Paying of a credit card

Middle-term goals - Middle-term goals are goals that you can achieve within one to five years. Goals may include:


• Purchasing a new car
• Getting a new kitchen
• Paying of a credit card
• Dental work

Long-term goals - Long-term goals are generally anything that is over Five years to achieve. Goals may include:


• Buying a new house
• Saving for a child's college education
• Saving for retirement

OK, lets do a little quiz, read the list of goals below and based your current circumstances identify if they are short, middle or long:

The Goal	Short	Middle	Long
Replacing a TV set?
Purchasing a vehicle?
Child's college education?
Planning for your retirement?
Buying a home?
Replacing a refrigerator?

3. How do you achieve goals?

Achieving financial goals takes planning, they don't just happen. In order to achieve any thing in life you have to stay focused and use positive reinforcement, just like trying to lose weight - stay positive and focused.


• Develop your goals hand-in-hand with your budget and spending plan, and figure out ways that you can apply more of your money towards achieving them.
• Write down your goals, place reminders around the house where you will see them everyday, this helps to keep you focused.
• Get people in your life to support you and feed off their inspiration.
• Set realistic goals, some that you will achieve within a few months, this helps to keep your morale high
• Review your goals every few months, if your financial situation has changed it's Ok to change them

4. Which family do you think will succeed?

Look at the 2 families below, and based on their financial goals, who do you think will succeed?

The Smith Family	The Jones Family
…HOPE to get out of debt	…WILL be out of debt by January of next year based on a monthly payment of $500
…WANT to purchase a home	…WILL by a home by March with $10,000 saved for a down payment
…WISH WISH to eventually send their child to college	…WILLhave $14,000 saved for tuition by the time their child is 18 years old

The Jones family are the ones who will succeed. Why the Jones family?

The Smith family has their hopes; wants and wishes but they have not set any specific goals. Whereby the Jones family has set achievable goals and WILL succeed.

5. MY GOALS WORKSHEET

Use this worksheet below to document your goals, how much they will cost and track your progress:-

Click Here to Print Our Goals work sheet!

Newsletter 02
Rev.1
February, 2005