Step 1: Identify and write down your financial goals, whether they are saving to send your kids to college or University, buying a new car, saving for a down payment on a house, going on vacation, paying off credit card debt, or planning for you and your spouse’s retirement.
Step 2: Break each financial goal down into several short-term (less than 1 year), medium- term (1 to 3 years) and long-term (5 years or more) goals; which will make this process easier.
Step 3: Educate yourself and do your research. Read Money magazine or a book about investing, or surf the Internet’s investment web sites. Do not be afraid of the stock market.
Diversify your portfolio. With a little effort you can learn enough to make educated decisions that will increase your net worth many times over. Then identify small, measurable steps you can take to achieve these goals, and put this action plan to work.
Step 4: Evaluate your progress as often as needed. Review your progress monthly, quarterly, or at any other interval you feel comfortable with, but at least semi-annually, to determine if your program is working.
If you’re not making a satisfactory amount of progress on a particular goal, re-evaluate your approach and make changes as necessary. There are no hard and fast rules for implementing a financial plan. The important thing is to at least do something as opposed to nothing, and to start NOW.
- Begin by taking 5%-10% out of each pay check and put it in a savings account
- Look into different investment strategies such as IRA’s, stocks, RRSP’s, mutual Funds, personal investments etc. There are many more and all can assist you in short and long term goals.
- Start making a budget for yourself that leaves you with some extra money and follow it
- Use your coupons that are why they are there. It seems like small savings, but add together you could save 20-30 dollars at each trip to the market
- Shop around for bargains
- Do not live outside of your means
- Work with a credit counselor to get help in lowering your monthly expenses and get rid of your debt
These are just some of the things that you can do when beginning to realize your financial goals. Of course, you also have to follow the steps in the above sections on how to successfully set goals.
The steps to setting goals successfully don’t change, only the methods that you use to go about it. By that I mean; when it is career wise, work to get noticed; for relationships, work on maintaining your intimacy or getting it back; in financial matters, work to save and invest money etc. It really is that easy.
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