Identifying Financial Goals
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How do you Identify Goals
Actually this outline applies to any goal be it financial or a life goal. A goal is an end-state. Once we have identified the objective we can construct the steps needed to reach it! Goals, themselves, are dependent on our values.
What are Values?
Simplistically, values are those things, which we cannot put in a wheelbarrow that are important to us. There is one exception, and that is money. Yes, you can put money in a wheelbarrow but all other values are abstracts that you can’t. A value is a concept, so freedom, liberty and security are examples of values.
How to Determine Values
Easy, you make a list. Ask yourself what the most important thing in life is for you? See what you get, and that’s your prime value and then continue by asking what’s the next most important thing and so on. You will come up with a values’ hierarchy when you have finished.
Example: Let’s pretend you listed “freedom” as your prime value, you then look to see how “freedom” impacts economic goals. Debts are restricting, and you want freedom. The two are not compatible, so it would feel good to you if you were to pay off your debts. So an important goal for you would be to pay off debts. This is a very global goal.
Goals Need to be Specific
To state I want to pay off my debts is an intention. It is not a goal, because it is not specific enough. To make the goal precise you will have to number crunch. Take your credit card and other statements and add up what you owe. Exclude your mortgage, but include the other debts. How much do you owe? Let’s say it is $4,000. How much do you earn from all sources; get a total. Let’s surmise the figure is $2000. How much can you afford to channel towards debt removal after you have taken everything else into consideration? OK you have reached the figure of $300. Divide 4000 by 300 and you will see at once that it will take you almost 14 months to wipe out this debt. You have identified a goal and made it specific. You have an end point in site; thus you have made it practicable. Good luck you are on your way!
Don’t forget: Stop using you credit cards, otherwise your end point will balloon and slip further away! Keep one for emergencies and put the others on ice! Oh, and if you want a bit of Internet help on this important topic, this website could be helpful: http://www.effective-time-management-strategies.com/goal-setting-plan.html
Related Posts
- Obstacles to Financial Goals
- Listing the Benefits of Financial Goals
- How to Set Financial Goals as a Couple
- Prioritizing Financial Goals
- Establish Financial Goals
- Setting Deadlines on Financial Goals
- Creating Short Term Goals
22 May 2008, 3:22 pm
[...] Identify your Financial Goals - The first step involves identifying your goals. You need to look deep down and think about what type of financial future you’d like to have. [...]