Setting and achieving goals is one of the best ways to ensure that you keep progressing financially. Think about what you want to achieve and why. As with anything else in life without financial goals and specific plans for meeting them we drift along and leave our future to chance.
Steps to setting Financial Goals:
Step 1: Identify and write them down. They could be sending your kids to college, investing for retirement, buying a car, going on holiday.
Step 2: Break down each goal into short term ( less than 2 years), medium term (3-5 years) and long term ( 5 years and more)
Step 3: Put a number next to the goals i.e. what it will cost at the time. Remember to include the effects of inflation. What your dream house costs today is not what it will cost tomorrow.
Step 4: Educate yourself! Talk to your financial advisors and start to learn about the investment options available to meet your goals.
Step 5: Save and Invest. Where you save or invest your money will ultimately depend on your financial goals. Your goals will determine whether you need to invest in areas that will grow the value of your investments, earn you an income or keep your money safe.
“A simpler way of thinking about it when trying to define your objective is asking yourself two simple questions. Firstly what you are going to use this money for and what do you want money to be able to do for you?” ( Waceke Nduati-Omanga)
I have been inspired with this thank you