STEP 2
Establish Short Term and Long Term Financial Goals.
Establishing challenging but practical financial goals puts you in charge of your money and your life.
This helps you understand your financial priorities; helping you decide where you want to be financially at a certain age.
It helps you prepare for the expected and unexpected financial events of your life.
How to set your goals?
We have heard and read enough about effective goal setting, some would have also attended trainings and seminars about the same, but still we find it difficult to pursue and achieve our goals.
The reason why we are unable to achieve our goals is because; we do not set up an action plan, helping us achieve our goals.
I recommend the following strategy while setting financial goals Think on Paper, write down all goals
Use the services of a financial advisor in setting up a financial plan in line with your personal goals.
Be specific,
Be realistic, Keep each goal simple -
Breakdown larger goals into small and multiple sub goals
Set a specific timeframe in terms of months, not in years.
Fix a Dollar / Dirham amount for each goal and sub goal.
The following picture tries to highlight the aspects of a financial plan with goals for protection, savings and debt elimination.
