The financial goals is a part of the financial planning. We should make to create a good financial goals to reach our the wealth. Without a financial goals, you will loss in a trying to reach the wealth. Here are the steps to create a financial goals:
1. Create a specific goals
Most people want to reach wealth. It is now wrong but the financial goal is not specific. We do not know the wealth definition. Every people has different view about wealth. Some people define wealth with house, car, gadget and other.
Example: A teenage want a car
We do not know what the car because the goals is very vague. Is the boy want a Jaguar? Mercedez? Honda?
There are some question about the goals, such as:
When does he buy the car?
Is it a new car?
Will he buy cash or lease?
The teenage can write the goals is to save $ 5,000 for buying old Honda car next three years. He does not want a new car that is very expensive.
The teenage know that he must be realistics to create a financial goals. He feels he can save $ 5,000 for three years.
2. Set the short, middle, and long term financial goals
Create the goal for short term or next 1-5 years. The short term may be not bigger as the long term cause the short time.
Example: the short term is to save $ 2,000 to own a good motorcycle.
The middle term financial goal is the anything that you could reach by 5-10 years.
Example: The middle term is to save $ 50,000 for master degree fee.
The long term financial goal is anything that can you reach in ten years more.
Example : The long term is to save $ 100,000 for hose.
3. Review the goal
After a year, you must review the goals? Can you materialize the one year financial goals? If you cannot materialize it, you have to work hard.
4. Determine the plane toward financial goals
Some people do nothing after create a goal. They must be wrong. They have to struggle to materialize their financial planning.
5.Review and modify the goal
What is the progress after one years you have made the financial planning?
Some economic situation may break our financial goals? Do not blame the economic situation because you cannot change it. The step that you can do is to modify the financials goals. Find the ways to reach the goal but do not decrease the financial goals.