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Financial Goals

The document discusses setting and achieving financial goals. It recommends setting goals that are specific, measurable, attainable, relevant and time-bound. Goals should be broken into smaller, incremental benchmarks to help stay motivated. Writing goals down, sharing them with others, and regularly reviewing progress can help ensure goals are accomplished through discipline and sacrifice. Financial planning is about bridging the gap between one's current situation and desired future through goal-setting, budgeting and sticking to a plan.

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227 views

Financial Goals

The document discusses setting and achieving financial goals. It recommends setting goals that are specific, measurable, attainable, relevant and time-bound. Goals should be broken into smaller, incremental benchmarks to help stay motivated. Writing goals down, sharing them with others, and regularly reviewing progress can help ensure goals are accomplished through discipline and sacrifice. Financial planning is about bridging the gap between one's current situation and desired future through goal-setting, budgeting and sticking to a plan.

Uploaded by

Froy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Top 10 Financial Goal 2019

"FINANCIAL DECISIONS AND GOALS"


What is Personal Finance?

EVERYTHING IN YOUR LIFE THAT


INVOLVES MONEY

Spend
Save
Invest
Live comfortably
Financial security
Achieve goals
What are Goals?

Things you want to accomplish

College education

Buying a car

Occupation

House
Benefits of Financial Planning
More money

Financial security

Use money

Goals

Debt you can handle

Support self and family


The Financial Planning Process (6 steps)
Step 1: Determine Your Current Situation

Savings
Monthly Income
Monthly Expenses
Debts (money owed to others)
Step 2: Develop Your Financial Goals

What is your “Attitude” about money?

What are your “Values”

Needs vs. Wants


Step 3: Identify Your Options

Expand Current Situation


Change the Current Situation
Start Something New
Continue the Same Course of Action
Step 4: Evaluate Your Alternatives

Sources of Financial Information

Consequences of Choices (Opportunity Cost/Tradeoff)

Understanding Risks

Inflation

Interest Rate Risk

Income Risk

Personal Risk

Liquidity Risk
 Step 5: Create/Use Your Financial Plan

Step 6: Review and Revise Your Plan 


Types of Financial Goals

Short-Term< 1 year

Intermediate2 – 5 years

Long-Term> 5 years
Goals for Different Needs

How you establish and reach your financial goals will


depend on whether a goal involves the need for:
Consumable Goods Durable Goods Intangible Item
Guidelines for Setting Goals

Realistic
Specific
Clear
Time Frame
Decide What Actions to Take
Influences on Personal Financial Planning

Life Situations

Personal Values

Economic Factors

Economy: study of decisions that go into making,


distributing, & using goods & services

Economy: Ways in which people make,


distribute, & use their goods & services
Economic Conditions Affecting Global and Personal
Decisions

Market Forces
Financial Institutions
Global Influences
Current Economic Conditions

Market Forces Supply Amount of goods/services available for sale

Demand

Amount of goods/services people are willing to buy


Financial Institutions
Provide services that increase financial activity in the
economyBanksCredit unionsSavings & Loan AssociationsInsurance
CompaniesInvestment CompaniesFederal Reserve System (Fed) is
the central banking organization of the United States
1. Have a well-stocked emergency fund
2. Get out of debt - completely
3. Plan for early retirement

4. Create multiple income streams

5. Have enough insurance to cover contingencies

6. Be able to live on less than you earn


7. End any addiction to stuff that you may have
8. Plan to do work that you love
9. Get comfortable sharing your good fortune
10. Plan to leave your financial house in order upon your death
The level of abundance in your life in any area –
love, friendship, success or finances – is a reflection
of your inner state – what you hold in your mind and
heart. Want to improve your money mindset and
create a healthy and loving relationship with
money?
1. Forgive your past.

2. Change your story.

3. Open your mind to infinite possibilities.

4. Practice gratitude.

5. Create space.

6. Know your worth.

7. Take small steps to cultivate the feeling of abundance.


5 Ideas for Setting Clear and Effective
Personal Finance Habits in 2019
Create a goal that is focused on small, specific actions.

 A big goal such as paying off a debt sounds great, but it isn't
anything that you can take action on every day. A good goal points
you directly toward some kind of step you can take every single day.
So instead of planning to repay your entire credit card bill by the
year's end, aim to put an extra dollar amount – say, $10 each month
– toward repayment. This gives you something clear to do each day:
You need to determine how to save $10. Obviously, some days you
can save more, but setting a $10 minimum gets you to your goal by
the end of the year.
Write down your goal. 

The act of writing down a goal makes it more likely that


you'll succeed at that goal. Writing things down by hand the
old-fashioned way, with a pen on paper, is even more
effective at lodging an idea in your mind, according to 2014
research in Psychological Science. So, the best approach
might be to pull out a notebook and pen, write down your
goal by hand and write down a brief plan for that goal. That
simple act will increase the likelihood of success.
When working on paying off a credit card, for example,
you're more likely to succeed if you write down that goal and
some of the steps you're going to take to achieve it.
Tell trusted friends about your goal. 

The act of telling others about your goal makes it more likely
that you're going to succeed. That's because you don't want
to appear to be a failure to your inner circle of friends. It
applies social pressure, which is often enough to get you to
succeed at your goal.
When working toward the credit card payoff goal example,
announce to a few of your close friends that you're trying to
pay off your credit card, and your goal is to save $10 a day to
apply to a big monthly payment. Ask for a bit of help and
encouragement, and you'll likely find that at least a few friends
will privately cheer you on throughout the year.
Review your progress toward that goal frequently. 

This is all about accountability. Setting a goal is a great thing, but


are you following through with it? Reviewing your progress
frequently is a vital step. Set a weekly appointment for yourself on
your calendar to review your ongoing resolutions and goals. Are
you making progress? How can you make better progress in the
coming week?
With a debt repayment goal, you can spend a bit of time each
weekend – about 10 or 15 minutes – looking back at the last week
for successes, missed opportunities and ideas for the week
ahead. You might even end up adding things to your to-do list
because of this new habit.
Have an accountability buddy.

 Ask a trusted friend to be your "accountability buddy," meaning that


you tell him or her each week how it's going and allow your friend to
ask you for an update once a week if you haven't given one. This is a
good role for a close friend who wants you to succeed. The desire to
not report bad results will nudge you toward greater success. If you're
reviewing your progress, as suggested above, then this type of report
is easy since it mimics the review you've already done.
For example, if you find an accountability buddy for your credit card
goal, you might send a note that says this: "I canceled my cable plan
this week, which will save about $60 a month, and I made a few meals
for the freezer that will save about $10 apiece, so I'm ahead of the
curve this week!" Or you can text, "I didn't save as much as I wanted
this week but I did go to the library instead of the bookstore to get that
book I've been wanting to read, so that's $10 saved."
Together, these strategies can increase your success rate with
a personal finance goal – or any goal – for the coming year.
Personal Finance Guide to Setting Goals and Sticking to Them
Financial planning is all about goals.

There are two islands: what you have and what you
want. The bridge between the two is your personal
finance budget. Getting to where you want to be
requires vision, planning and discipline - the vision to
know what you want, a plan to get there and the
discipline to stick with your plan. Follow this guide to
personal finance superstardom.
Setting goals and sticking to them is the key to
personal finance success.
Be Realistic

"I want to be a millionaire by the time I'm 27" is a grownup's personal finance goal the way getting
a pony for her birthday is a goal for a little girl. Goals and dreams are not the same things. Goals
are actionable, attainable benchmarks that can be achieved through hard work, discipline and
aggressive pursuit with the tools you currently have at your disposal. Paying off your student
loans in five years, doubling your savings in 18 months or paying off your highest-interest credit
card by the end of the year are all probably realistic, but none of them will come easy or without
discipline and sacrifice.
Reach Small Goals Incrementally

When a writer outlines a screenplay, he or she doesn't set a goal of having a screenplay
written in a year. The goal is having a chapter written in a month, 20 pages in a week.
Goals must be small and near in order to be attained. When it comes to personal finance,
break big goals down into small, manageable chunks. The easier they are to reach, the
more of them you'll hit on time. The best way to hit a big, longterm goal is to hopscotch
toward it on the backs of smaller, incremental benchmarks.
• Set Deadlines
•
If you plan to take a vacation to Hawaii someday, chances are you'll die without
ever seeing the Big Island. Goals need to have actionable, tangible time limits in
order to be reached. If you want to take a vacation to Hawaii, set a deadline; say, 18
months. When you have an end date, you have a timeline, you have a countdown
clock and something to work toward. Mint.com is designed to track and plan for
goals -- as long as you set an end date to reach them.
• Discipline and sacrifice is required to achieve financial goals.
• Goals are the backbone of personal finance. The money you earn, spend and save
must all be tailored around something you want in the future, like a car, or
something you don't want, like a debt. Once goals are established, a plan to get
there is easier to come up with, and the discipline needed to stay on track gets
easier to maintain once smaller goals are achieved.

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